Phoenix Development News (3)

[exit2lef]

This is the proposed building that drew some sky-is-falling reactions because it's on the site of the building currently occupied by Forno 301.

"A solar-heavy, net-zero energy apartment development could be coming to downtown Phoenix’s hipster-heave Roosevelt Row area. The sustainable multifamily development is being proposed for the southwest corner of Roosevelt Street and Third Avenue..."

http://www.bizjournals.com/phoenix/blog/...y-apartments-eyed-for-roosevelt-row.html

[nickw252]

The Phoenix city council approved the tax incentives for Block 23.

http://www.azcentral.com/videos/news/local/phoenix/2016/10/05/91610734/

http://www.azfamily.com/story/33326043/p...te-on-new-downtown-grocery-store-complex

[Jjs5056]

What a wasted opportunity. The upper floors are totally underutilized for a site that could support 3-4 towers and CityScape, Colliers, and TSA will all be fronted by blank grocery walls or loading docks.

A 50,000 sq foot Fry's in an urban location is simply unncessary, and allowing it to take up front such an incredibly large footprint lacks any vision. Urban grocers handle this issue throughout the country; the easiest being the addition of shallow retail bays along the edges.

2nd Street is also a total waste. This project should have tried to bring in some anchor retail and partnered with the Suns/Dbacks to get a top hotel on board.

[nickw252]

Originally Posted by Jjs5056

A 50,000 sq foot Fry's in an urban location is simply unncessary, and allowing it to take up front such an incredibly large footprint lacks any vision. Urban grocers handle this issue throughout the country; the easiest being the addition of shallow retail bays along the edges.

Wow. There has been so much talk about the need for a full-service grocer in downtown to make it a completely livable location, but you're now saying that it's unnecessary? We've seen that small format gourmet grocers don't work in downtown.

I've seen statistics saying that you need as few as 5,000 residents to support a full-service grocer. The 2014 population of downtown Phoenix was estimated to be about 13,900, with the population expected to be 20,000 by the year 2020 (see article below). Hundreds or thousands of residential units have come online since 2014. I expect the population to be currently be over 15,000 (and even higher by the time Fry's opens). As such, I think the Fry's will do just fine.

Downtown Population Figures

Multiple users on this forum indicated that 5,000 residents was needed for a full service grocer

This study shows that there is an average of 8,800 residents per supermarket nationwide

I don't disagree that the project may be a little "uninspiring." However, it fills a much needed gap in downtown. There are plenty of open lots downtown for a marquee, skyline defining tower.

[dtnphx]

Originally Posted by Jjs5056

What a wasted opportunity. The upper floors are totally underutilized for a site that could support 3-4 towers and CityScape, Colliers, and TSA will all be fronted by blank grocery walls or loading docks.

A 50,000 sq foot Fry's in an urban location is simply unncessary, and allowing it to take up front such an incredibly large footprint lacks any vision. Urban grocers handle this issue throughout the country; the easiest being the addition of shallow retail bays along the edges.

2nd Street is also a total waste. This project should have tried to bring in some anchor retail and partnered with the Suns/Dbacks to get a top hotel on board.

There is no way that site could support 3-4 towers of any kind. A full office tower, maybe. One condo, maybe. Also, the loading docks run down the middle behind the building not on the street.

[Obadno]

Originally Posted by nickw252

Wow. There has been so much talk about the need for a full-service grocer in downtown to make it a completely livable location, but you're now saying that it's unnecessary?

He has never seen a project he likes.

[biggus diggus]

For what it's worth this Fry's will be the closest grocery store to me but I will still use the Safeway at 7th and McDowell when I need to go to a store other than WF (90% of my shopping) or TJ's (9%). I would be willing to bet that after negotiating the extra stop lights, inevitable traffic, and parking garage the Fry's will be a lot more of a hassle than most are willing to deal with. I have concern that Phoenix has the population density at this point to support this store. Sure, you go to Chicago and it's a way of life, you end up in a parking garage under the store and a short elevator ride later you're inside shopping or you walked there from home. In Phoenix the options are too plentiful to get in the car and drive 5-10 minutes for an easier time and there aren't that many people who live close enough to walk for their groceries. The people who live in Roosevelt will likely find it simpler and closer to go to Safeway as well.

Things may be very different in five years and I'm going to hope I'm wrong but this seems like a major risk.

[nickw252]

I used to shop exclusively at Safeway but recently switched to Fry's. I find Fry's to have better prices and a better selection of food (especially meat). Give it a try when it opens. It may be worth the extra few stoplights and usage of a parking garage.

[exit2lef]

Originally Posted by biggus diggus

For what it's worth this Fry's will be the closest grocery store to me but I will still use the Safeway at 7th and McDowell when I need to go to a store other than WF (90% of my shopping) or TJ's (9%). I would be willing to bet that after negotiating the extra stop lights, inevitable traffic, and parking garage the Fry's will be a lot more of a hassle than most are willing to deal with. I have concern that Phoenix has the population density at this point to support this store. Sure, you go to Chicago and it's a way of life, you end up in a parking garage under the store and a short elevator ride later you're inside shopping or you walked there from home. In Phoenix the options are too plentiful to get in the car and drive 5-10 minutes for an easier time and there aren't that many people who live close enough to walk for their groceries. The people who live in Roosevelt will likely find it simpler and closer to go to Safeway as well.

Things may be very different in five years and I'm going to hope I'm wrong but this seems like a major risk.

For many customers, the appeal of this store will be the possibility of shopping via light rail. While there are several supermarkets across the street from light rail stations (AJ's, Fry's on Glendale Ave, Super Target, Sprouts, etc.), they're all set back from the street and require customers arriving on foot to traverse large, unappealing parking lots. The new Fry's, however, will be a short distance from light rail in an area with a lot more pedestrian appeal. Even from a driving perspective, there are 5-6 months of the year when the shade of a garage is far more appealing than a baking surface parking lot (at least for me).

[muertecaza]

http://www.theonion.com/article/new-study-finds-most-earths-landmass-will-be-phoen-54107

SYRACUSE, NY—Forecasting the continued rapid growth of the metropolitan area in the coming decades, a study published Thursday by researchers at Syracuse University has found that the majority of Earth’s landmass will be Phoenix suburbs by 2050. “Projecting present growth trends forward, we were able to determine that 35 years from now, the suburban area surrounding Phoenix, AZ will have expanded to occupy nearly 70 percent of all land on Earth, or roughly 137 million square miles across six continents,” said study co-author Grace Parsons, explaining that the entire land area of North America would be subsumed by the suburban sprawl spreading out from Scottsdale by 2030, while new subdivisions on the outskirts of Glendale and Litchfield Park would continue expanding westward, crossing the Pacific Ocean and encompassing most of Asia over the following decade. “By the time the suburbs extend into the Southern Hemisphere in about 30 years, over two-thirds of Earth’s land will be counted among the working-class towns, affluent neighborhoods, commercial districts, and bedroom communities encircling Phoenix.” The researchers warned, however, that a lack of adequate transportation infrastructure in the Phoenix metro area could create problems for workers driving in from the suburbs, estimating that traffic congestion during rush hour could add as much as 1,200 to 1,400 hours to their daily commutes.

[exit2lef]

Originally Posted by muertecaza

http://www.theonion.com/article/new-study-finds-most-earths-landmass-will-be-phoen-54107

Move far enough way from work, and due to the curvature of the Earth, you'll actually be next to your office.

[CrestedSaguaro]

FAA obstruction evaluations approved for Derby. Looks like construction will kick off beginning of 2017 if all goes well. Height will be 245'. Not bad.

Tower crane:
https://oeaaa.faa.gov/oeaaa/external/searchAction.jsp?action=displayOECase&oeCaseID=303552015&row=9

Derby:
https://oeaaa.faa.gov/oeaaa/external/sea...=displayOECase&oeCaseID=301998988&row=11

[CrestedSaguaro]

Also, found the height of the New Banner tower will be coming in at 290'.

https://oeaaa.faa.gov/oeaaa/external/sea...=displayOECase&oeCaseID=293458784&row=13

[Obadno]

Office Vacancies at pre-Recesion lows

http://www.bizjournals.com/phoenix/news/...es-lowest-since-2008-across-phoenix.html

Anybody with more incite know why we aren't really seeing any office construction with these vacancies, especially with no indication that demand will be lowering over the next several quarters?

Paywall so here is the text:

The amount of vacant office space in the Phoenix region is at its lowest point since 2008, according to new data from two leading commercial real estate firms.

Third quarter numbers from JLL and Cushman & Wakefield both peg the Valley’s office vacancy rate at its lowest point since 2008. That is when the recession was hitting the U.S. and Arizona economies.
JLL researchers have the Phoenix metro area’s office vacancy rate at 19.7 percent. That is the lowest since 2008 and down from the recession peak of 28.1 percent in 2011.

JLL also projects net leasing activity — or absoprtion — to end 2016 at more than 3 million square feet.

That would be the highest absorption since 2005’s 4 million square feet leased up, according to JLL.

Cushman & Wakefield has the metro office vacancy rate at 17.8 percent. That’s also the lowest since 2008 in Cushman’s real estate research and down from 18.9 percent in the third quarter of 2015.

“The metro Phoenix office market continued to experience robust demand during Q3 2016, absorbing over 1.1 million square feet (MSF) and bringing the year-to-date total to over 2.8 million square feet,” said Curtis Hornaday, associate market director of research with Cushman & Wakefield. “This marks the second largest Q3 year-to-date net gain of all time.”

The average asking office rent in the Phoenix market is $24.08 per foot, according to Cushman.

The 24th Street and Camelback Road and Old Town/South Scottsdale submarkets have the most expensive asking rents at $35.44 and $31.58 per foot, respectively.

JLL pegs the average asking rent a $24.22 per foot with the Tempe’s Hayden Ferry Lakeside’s $45 per foot asking rent the highest in the local market

[nickw252]

Originally Posted by RonnieFoos

Also, found the height of the New Banner tower will be coming in at 290'.

https://oeaaa.faa.gov/oeaaa/external/sea...=displayOECase&oeCaseID=293458784&row=13

That'll be a nice addition in that area. Are there any renderings of the tower?

[muertecaza]

Originally Posted by nickw252

That'll be a nice addition in that area. Are there any renderings of the tower?

[ASU Diablo]

never mind...

[ASUSunDevil]

http://www.phoenixnewtimes.com/music/cha...-music-venue-in-downtown-phoenix-8735325

[ASU Diablo]

Originally Posted by ASUSunDevil

http://www.phoenixnewtimes.com/music/cha...-music-venue-in-downtown-phoenix-8735325

Love seeing that this side of Van Buren is coming alive. Between Welnick Marketplace, Monroe Abby, and this project, this stretch gonna look pretty cool. Hopefully spurs more development and more adaptive re-use of existing building stock. Charlie Levy has been a great advocate for downtown!

[Obadno]

Originally Posted by airomero83

Love seeing that this side of Van Buren is coming alive. Between Welnick Marketplace, Monroe Abby, and this project, this stretch gonna look pretty cool. Hopefully spurs more development and more adaptive re-use of existing building stock. Charlie Levy has been a great advocate for downtown!

With Alta and now the Fillmore development I expect those Northwestern blocks to start filling up with infill and redevelopment.