Phoenix Wants More Restaurants, Retail in these 4 Areas

Article originally posted on AZ Central on September 29, 2023

Where does Phoenix want to grow retail and restaurants?

Restaurants, shops and entertainment options can create a sense of place in neighborhoods and can preserve an area’s culture.

Karla Scott is the economic development program manager for Phoenix and focuses on retail. She outlined some geographic areas of focus for the city.

Two are newly developing areas, in north Phoenix near the Taiwan Semiconductor Manufacturing Co. and in the southwest corner of the city, in Laveen and Estrella villages.

The other two areas have long been developed. In Melrose, the city is hoping to support new uses for older properties. In Maryvale, the city sees a need for more healthy food options and new businesses to attract Gen Z residents.

North Phoenix: Growing an Asian district

An artist's rendering shows the shopping center that Thompson Thrift is developing in north Phoenix. The area has been a hotspot for development on the heels on Taiwan Semiconductor Manufacturing Co.'s purchase there.

When Taiwan Semiconductor Manufacturing Co. bought its land in north Phoenix near Loop 303 and Interstate 17, much of the land around the plant was vacant, but many of the nearby retail centers were already fully leased.

A large population of people from Taiwan and other Asian countries, including mainland China and Japan, are expected to come to Phoenix to live and work. Growing an Asian district around the plant is among Scott’s goals.

The city has hosted delegations from Taiwan to look at the area as a possible landing spot for stores, restaurants and activities, she said. Businesses from other countries, including Japan and South Korea, also could plant roots in the area.

Much of the retail space in the north Phoenix corridor is already full, so new construction will be necessary to keep up with demand. However, some existing shopping centers could see an infusion of Asian businesses, she said.

Lee Chi Investment Group bought Seventh Street Plaza, a retail center at Seventh Street and Union Hills Drive. The center has some tenants already, but the new owners plan to convert the center to focus on Asian-centric businesses, Scott said.

Maryvale: Looking for Gen Z-oriented businesses

Desert Sky shopping mall photographed on Aug. 17, 2023, in Phoenix.

Maryvale is Phoenix’s densest village and youngest by population, Scott said. Much of the restaurant offerings throughout the village had been very fast food-oriented, and residents of the area would like to see healthy food or fast-casual options.

With an average age in the village of 28 to 29, the city would like to attract brands and companies that are popular with Gen Z, like buzzy restaurants, boba tea shops, and health and beauty retailers.

A Starbucks location in Maryvale near 75th Avenue and McDowell Road is one of the best-performing Starbucks locations in the state, she said, which shows a high demand for coffee shops in the area.

Entertainment and activities, like dance studios or martial arts gyms, are also among the requested amenities, she said.

Maryvale is also home to Desert Sky Mall, an indoor power center that has managed to keep high occupancy when other large malls have suffered large vacancies, Scott said.

The area has a large concentration of sit-down restaurants, but they are not enough to serve the large population, she said. Most restaurants are full on weekends, showing a need for more options.

Laveen and Estrella villages: Catering to new residents

Vestar will be required to rehabilitate a nearly 100-year-old farmhouse on the Laveen site, where it plans to build a shopping center.

As new home construction has boomed in the Laveen and Estrella villages in southwest Phoenix, demand for retail and restaurants has grown, Scott said.

Much of Laveen had been zoned for single-family homes, but neighbors and community leaders requested new commercial space and restaurants to serve the growing neighborhoods.

Scott said a lot of the city’s focus on Laveen and Estrella has been on bringing fine dining or sit-down restaurants and supporting local businesses that are seeking to grow or establish a location in Laveen or Estrella.

Some large-scale retail projects are on tap for Laveen, including Laveen Towne Center, planned by Vestar, the developer of Desert Ridge Marketplace.

That project will bring about 375,000 square feet of new restaurant and retail space and will adaptively reuse an existing farmstead on the site, which could be a good location for a fine dining restaurant, Scott said.

The area is also in need of entertainment options, like a pickleball concept, she said. Harkins Theatres owns land in the area and plans to build a movie theater.

A key focus, along with growing the area’s retail offerings, is preserving the agrarian culture and promoting businesses that are already in Laveen and Estrella, such as Amadio Ranch and Danzeisen Dairy, Scott said.

Melrose: Creating solutions with older buildings

Melrose is an eclectic area with older infrastructure and buildings that has grown into a food and beverage destination with an LGBTQ-centric flair.

The area has a diverse collection of different building types and has become a hotspot for adaptive reuse projects that give a new life to an aged or historic building, Scott said.

A focus for the city in Melrose has been to help businesses with some creative solutions when it comes to aging buildings and infrastructure, because the costs associated with updating an old building and bringing it up to code for a new use can be prohibitive to small businesses, she said.

One adaptive reuse project that has been in the works in Melrose is called the Royale, which is reusing buildings that had formerly been auto body and repair shops. They are being turned into a small business collective and will have offerings such as a coffee shop, a hair salon and spa, a flower shop, an architecture studio, a restaurant and bar, an ice cream shop, a health and wellness office and a photo studio.

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