Phoenix Development News (3)

[combusean]

Someone did their homework and posted some rather disconcerting news about vacancy rates and rents in the new residential towers downtown.

https://old.reddit.com/r/phoenix/com...t_prices_have/

[Obadno]

Originally Posted by combusean

Someone did their homework and posted some rather disconcerting news about vacancy rates and rents in the new residential towers downtown.

https://old.reddit.com/r/phoenix/com...t_prices_have/

This is a good thing rents have ballooned totally out of control.

Why would somebody pay 2500 downtown when they can pay 1850 in a nicer neighborhood in Scottsdale?

This correction is absolutely necessary.

[MiEncanto]

Originally Posted by combusean

Someone did their homework and posted some rather disconcerting news about vacancy rates and rents in the new residential towers downtown.

https://old.reddit.com/r/phoenix/com...t_prices_have/

Wow. That is pretty shocking. Now, rates absolutely skyrocketed the last few years so some coming down is certainly in order....

[Ttown5]

Originally Posted by combusean

Someone did their homework and posted some rather disconcerting news about vacancy rates and rents in the new residential towers downtown.

https://old.reddit.com/r/phoenix/com...t_prices_have/

I have been looking into apartments recently as I was hoping to move at the end of the year - from what I've seen prices have dropped considerably. We asked all the apartments we toured with about occupancy rates, and most of them are within 15%. I think moontower was the fullest at somewhere around half or so, but skye was at 8%, and Ave Sky was also around the same amount full. Moontower is a beautifully constructed apartment complex, their amenities are top notch and it is obviously well taken care of. In my opinion Greystar are some of the best maintained and built properties around, their quality is very good. I was not aware of this collapse in price, but with so many units going up for the prices they were at, I don't think the phoenix market was able to support the prices at this time. Skye was at 2700+ for a large one bedroom at 800sqft, dropped to $2300 and 8 weeks free since the beginning of the year. The leasing agent seemed new, but he told me that he wouldn't quote me on price since I wasn't looking to move in until after summer as he felt they would be even lower by then.

[MMDelon]

There’s also no incentive to stay in downtown Phoenix at the moment. There’s not enough retail and entertainment that gives you a true downtown feel that most ppl want when moving to downtown. Phoenix has come a very long way but they really got to emphasize retail to keep people living in downtown.

[PyroD]

It's good to know that with more units coming online, the supply will only increase more. I do hope the lower prices draw people in though, it might give developers who haven't broken ground some pause if they don't think they'll pencil out.

[MiEncanto]

Originally Posted by MMDelon

There’s also no incentive to stay in downtown Phoenix at the moment. There’s not enough retail and entertainment that gives you a true downtown feel that most ppl want when moving to downtown. Phoenix has come a very long way but they really got to emphasize retail to keep people living in downtown.

No incentive? Have you been down there on any given weekend? Place is popping.

Sure, it could use more retail and grocery in particular but retail is changing.

[MMDelon]

Downtown is popping and it’s lively but I can see why people don’t want to live in downtown Phoenix long term because there isn’t a lot of variety as far as retail shopping, grocery stores, and entertainment to warrant the high cost of rent. I’m positive that when more retail comes downtown that families and young adults will stay long term. I’m very bullish on downtown Phoenix but they need to prioritize getting more retail and entertainment. It sounds like by the end of the year we should know more about the entertainment district but that could take years to develop.

[ASU Diablo]

Originally Posted by ASU Diablo

Wow pretty amazing if Macerich can pull off both towers at Biltmore and develop the other parcel at Fashion Square.



https://www.bizjournals.com/phoenix/...-proposed.html

Well, looks like they changed their plans and pulled from it being entirely office and now will be mixed-use. Also, at least we will get some additional height, from 140' to 165'.

https://www.bizjournals.com/phoenix/...hion-park.html

Less than two weeks after withdrawing an application to develop a tower at one of the Valley's prominent shopping destinations, Macerich Co. has resubmitted plans for consideration.

Macerich is partnering with Phoenix-based Red Development to build a mixed-use tower at the Biltmore Fashion Park on the northeast corner of 24th Street and Camelback Road in Phoenix. The project's initial application sent to the Phoenix planning hearing officer, or PHO, showed plans to develop a 10-story, 140-foot-tall office tower.

That has since been revised as the developers are looking at the tower to be mixed-use and qualify for a height increase bonus up to 165 feet tall, said Jeff Moloznik, Red's senior vice president of development.

Should it receive approvals, the final mix of uses that the new building will serve will be dictated by market demand. Moloznik said Red and Macerich are kicking around ideas for a commercial building with retail, restaurants, and entertainment as well as office, hospitality and residential.

Plans were submitted to the city of Phoenix on March 1. Ben Graff, a partner of Quarles & Brady LLP and the land-use attorney for the project, said the hope is for the plans to be heard by the PHO sometime in April.

The PHO hears requests to modify or delete stipulations from approved rezoning cases, time extensions for conditionally zoned properties, certain modifications to comprehensive sign plans, and zoning reversions initiated by the Planning Commission.

If Biltmore approved, site plan and permit review would follow
Should it get PHO approval, the project would go through a site plan and building permit review along with the construction drawing approval process before it can proceed. As the project goes through those hearings, Macerich and Red will look to finalize the use of the new building sometime before the end of the year. A timeline to start construction would likely be established around then, said Andy Greenwood, vice president of development for Macerich.

Macerich (NYSE: MAC) owns the Biltmore Fashion Park, which is home to tenants such as Macy's, Saks Fifth Avenue, Anthropologie and Life Time. The location of proposed office tower would located near Life Time toward the southeast corner of the 32-acre parcel.

Macerich also owns Scottsdale Fashion Square mall, which is neighbors with the new Caesars Republic Scottsdale hotel that will officially open on March 6. Macerich is leasing the land to developer HCW Development. Macerich is also in the early stages of possibly adding "high-end residential" and "Class A office" to a vacant parcel next to the Caesars Republic.

Red developed The Grove, considered one of the top office destinations in the Valley, on 44th Street and Camelback Road. Its portfolio of office development also includes downtown office buildings like Block23 and CityScape and the newly built GSQ in Goodyear.

[Obadno]

Believe it or not I have some information that the long-awaited Abbey is opening soon (ish) for events, shows and just general use!

Sometime int he next several weeks the news will probably slowly leak out. But its going to be a venue for events and small shows as well as host a coffee shop and a Bar/Restaurant that will be open to the public outside of special events.

[CrestedSaguaro]

Originally Posted by ASU Diablo

Well, looks like they changed their plans and pulled from it being entirely office and now will be mixed-use. Also, at least we will get some additional height, from 140' to 165'.

https://www.bizjournals.com/phoenix/...hion-park.html

What is the height limit for the Biltmore area? I always thought it was 150'ish?

[gymratmanaz]

Remind me what The Abbey is?

[CrestedSaguaro]

Originally Posted by gymratmanaz

Remind me what The Abbey is?

The old church that partially burned down.

http://www.monroestreetabbey.org/

[combusean]

There is a base height limit of 140', then 165' with a bonus last I checked.

[phxjack]

Great article summarizing current downtown projects with updated photos

https://dtphx.org/2024/02/28/get-to-...ntown-skyline/

[DesertRay]

Originally Posted by MiEncanto

Wow. That is pretty shocking. Now, rates absolutely skyrocketed the last few years so some coming down is certainly in order....

Might have something to do with this software.

PHOENIX (3TV/CBS 5) — Arizona Attorney General Kris Mayes is suing RealPage and nine corporate-owned landlord operators, accusing them of illegally price-fixing apartments and other rentals in the Phoenix and Tucson metropolitan areas.

“In the last two years, residential rents in Phoenix and Tucson have risen by at least 30% in large part because of this conspiracy that stifled fair competition and essentially established a rental monopoly in our state’s two largest metro areas. RealPage and its co-defendants must be held accountable for their role in the astronomical rent increases forced on Arizonans,” Mayes said in a news release on Wednesday morning.

to Mayes, 36% of Phoenix households are renters, who have seen a 76% rent increase since 2016. Meanwhile in Tucson, 37% of households are renters who have seen a 30% rent increase.

Several tenants who rent from the companies in the lawsuit told Arizona’s Family while prices went up, no physical changes happened in their living areas. “They keep getting money from everybody but I don’t know what they are doing with all that money,” said one renter who didn’t want to be identified.

Some were even priced out as rent kept climbing. “I would say these last two to three years, it was a headache,” said another renter.

[soled]

Originally Posted by Obadno

Also to Follow on to the story about Freeport Shopping for an HQ

How about somebody from he city get in touch with AXON whose having its own HQ troubles with Scottsdale and incentivize them downtown?

I understand that they are kind of a weapons manufacturer but its non-lethal stuff so that should assuage some of the screeching

My daughter works for Axon. As far as she knows there's been no talk of a move to Downtown Phx, but there has been a mention of a possible out-of-state move if this Scottsdale thing doesn't come to fruition(while keeping a presence in Arizona.

I believe she said at least 60% of their building is for manufacturing products, so that might be part of why DT Phx wouldn't be consideed.

[soled]

Originally Posted by Ttown5

I have been looking into apartments recently as I was hoping to move at the end of the year - from what I've seen prices have dropped considerably. We asked all the apartments we toured with about occupancy rates, and most of them are within 15%. I think moontower was the fullest at somewhere around half or so, but skye was at 8%, and Ave Sky was also around the same amount full. Moontower is a beautifully constructed apartment complex, their amenities are top notch and it is obviously well taken care of. In my opinion Greystar are some of the best maintained and built properties around, their quality is very good. I was not aware of this collapse in price, but with so many units going up for the prices they were at, I don't think the phoenix market was able to support the prices at this time. Skye was at 2700+ for a large one bedroom at 800sqft, dropped to $2300 and 8 weeks free since the beginning of the year. The leasing agent seemed new, but he told me that he wouldn't quote me on price since I wasn't looking to move in until after summer as he felt they would be even lower by then.

My daughter lives in an apt in the Biltmore area. We took a few tours in some of the DT Phoenix apts last month.

They are starting to offer incentives for new residents, but for the money, each of them had some inherent flaws in their apartment design and layouts that kept her from making a move just yet. The amenities in most, were awesome, though.

[combusean]

I noticed there is a remarkable amount of construction going on by St Luke's. Harmony at the Park has been under the radar but they're really pushing forward with this somewhat unexpected pocket of high density.

[gymratmanaz]

I see the huge blocks south of McDowell and west of 56th ST fenced off with skirting, but I can't tell what is going to be built. Are they tearing down the existing buildings? The skirting almost looks like something involving entertainment.