Arizona Real Estate

Tempe Rising Brings Economic Boom to the City

Tempe Rising Brings Economic Boom to the City

 

In July of 2013, it was announced that three major projects for Valley development and commercial real estate would be constructed, resulting in more than $1B in economic impact. Dubbed “Tempe Rising”, these projects will include a $350M mixed-use development by USA Place, LLC, located at the SEC of Mill Avenue and University Drive in Tempe, as well as a $600M mixed-use complex called Marina Heights, located in Downtown Tempe, adjacent to ASU Sun Devil Stadium. Much of the commercial real-estate in Downtown Tempe is being regenerated, including Twin Palms Hotel on Apache Boulevard and the iconic Hayden Flour Mill. With the expected construction to be carried out over the next four years, these developments will bring many economic benefits to the city of Tempe.

The Marina Heights development will include five office buildings leased by State Farm, retail amenities and a 10-acre plaza. The project is expected to add additional tax revenue for the government, as well as boost Tempe’s employment level, bringing thousands of jobs to the area. State Farm alone will be hiring an estimated 900 employees for its new offices. These jobs and developments are also expected to increase the need for residential real estate around the downtown Tempe area, with hundreds of new apartment complexes being built near the lake and around the city.

In addition to Marina Heights, it has been calculated by developers that the $350M USA Place project, the new headquarters for USA Basketball, could draw more than 300,000 visitors to the area annually. The jump in visitors will provide an economic boost to Tempe with a need for retail, dining, and hotels in the area. The ripple effect from the site is predicted to include increased development for the entire area – ASU is no longer the only driving force for the city’s economy.

According to ResourcePHX.com, this developmental boom will be beneficial to the entire state, but especially the area of Tempe. The addition of jobs and new businesses will heighten demand in the area, which will increase housing prices, adding equity and value to homes.The increase in property values will benefit local homeowners, sellers and investors.

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