How ASU, Lakefront Towers, Fine Dining are Reshaping Downtown Tempe

Article originally posted on AZ Central on December 29, 2025

Downtown Tempe has undergone dramatic transformations in the 21st Century, evolving from a college-centric nightlife hub to a bustling employment district.

It used to be known as one of the only downtowns with any semblance of life after 5 p.m. because of its music and bar scene. But to some, downtown Tempe lost its character and charm as it transitioned into a big-box retail destination and then a corridor catering to college students.

Downtown Tempe’s most recent evolution has been fueled by the expansion of the largest university in the nation, a surge in high-rise development and a growing population of young professionals.

The result is a skyline and vibe almost unrecognizable from even a few years ago.

The Arizona Republic took a deep look at how downtowns across sprawling metro Phoenix have been transforming, and they’re doing so in different ways. Here’s how forces are shaping downtown Tempe’s changes:

ASU remains dominate force

Arizona State University has shaped the makeup of downtown Tempe since 1885 when it first opened.

The university has been and will continue to be an economic engine for the region. ASU contributed $6 billion to Arizona’s gross domestic product in fiscal year 2024, and ASU students spent nearly $2 billion on non-tuition expenses in fiscal year 2024.