A new residential development in midtown highlights the overall trend of young people choosing to live in urban areas, according to city leaders.
Phoenix Director of Community and Economic Development Christine Mackay has worked in commercial real estate for about 25 years, and she said she is surprised by the recent growth in housing in midtown and downtown Phoenix.
“The housing market is adjusting to fit all ages,” she said. “It’s interesting, I have not seen this within my career. I’ve not watched the market adjust so quickly to such a wide range of demands.”
According to Mackay, midtown vacancy rates have declined from 38 percent to 23 percent in the past year, yet the area still has big blocks of space for larger tenants. The options for a 60,000-square-foot space are greater in midtown, and there have been about 2 million square feet of transactions midtown in the past year, she said.
Downtown is a much tighter market with vacancy rates in the mid-teens, but it is still experiencing growth, she said.
Mackay said she likes to think of midtown and downtown Phoenix as the “central city,” adding they’re both growing at the same rate with midtown just having larger transactions than downtown. She believes in part the urbanization and modernization of the city is helping with this growth, saying that although the boom started with 26- and 27-year-olds, it’s expanding to all ages.
“It’s benefiting by light rail, mass transit; it’s changing by the whole mentality of people wanting to live closer in and not in large houses in suburbs. They’re looking for a much more urban, connected, turnkey lifestyle,” she said. “It’s really benefiting by all the local shops and restaurants and all the residential coming in to midtown and downtown.”
This is a sentiment that Rob Lyles, partner of Deco Communities real estate development shares.
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“The urban experience people want is finally coming to Phoenix.” Lyles said. Deco Communities is part of this rising market, with their new project, the Edison Midtown condominiums, going into construction in the next 30 days on Central Avenue and Monterey Way.
Lyles said he expects many of the buyers to be 25- to 35-year-olds, but he also expects people looking to upgrade from older condominiums, or empty-nesters from the southeast and northeast valley or Scottsdale looking to move in to the urban experience.
“People are excited about living in the midtown, downtown area, with all the new restaurants and sports venues and museums, now that their kids have gone off to college. They want to move into town and have fun,” Lyles said.
Lyles said 15 out of 110 units sold within the first two weeks.
Lyles also cited the new product as a huge attraction for many potential buyers.
“There’s a lot of apartments being built, but those are for renters,” he said. “We are hoping we will get homeowners.”
The condominiums have amenities including a courtyard, pool and spa, fitness center, Wi-Fi common areas and electric car-charging stations. There are one- and two-bedroom availabilities ranging from 808 square feet to 1,397 square feet. Pricing starts at $239,900.
Walt Sterling, manager of new restaurant Ocotillo, said he is looking forward to having the condominiums open just blocks from the restaurant.
“It’s going to be great for us,” he said. “It’s nice. They’re modern. Our space is modern. We’re both new places in the area — it helps create more energy in the area. Midtown has been growing and it’s a hot little area of phoenix right now.”
Sterling also said that though they have downtown clientele, midtown is attractive in many ways because of ease of access.
“There’s lots of parking here, where in places like Cityscape or other areas of downtown there’s not a lot of access or parking.”
Contact the reporter at Kara.Carlson@asu.edu
Correction: October 6, 2015
A previous headline for this story mistakenly identified Edison Midtown as a luxury apartment complex. It has been corrected for accuracy.
