Contrary to popular belief the future of commercial real estate development in Arizona is not focused on new residential towers or warehouses. According to AZ Big Media, the future of commercial development is taking well-known locations and getting fresh ideas to repurpose them.
Both developers and high-level officials for real estate companies say that turning old real estate into mixed-use destinations is the new future for commercial real estate in Arizona.
Mixed-use destinations
Reports state that the retail disruptions that are happening are probably far from over. Calling for an overhaul on traditional malls and other retail establishments, mixed-use development aims to tie in office, retail and multifamily elements. These types of commercial real estate projects are responsive to the lifestyles people want to live and the destinations they like to visit. 3
One example is a conversion that took place in Tuscon. The empty Sears building inside the Tuscon Mall converted into a Japan-based, mixed-use entertainment, bowling and arcade destination. People are still able to walk around and interact with different retailers while also having restaurants and entertainment centers mixed in. Traditional malls are floundering for business and many business owners welcome this change to better reflect what people want.
Another example of multi-use commercial real estate involves creating employment centers that include tons of amenities. Modernizing the building to include clerestory windows bring in more natural light into the workspace. Built-in barbecues and game areas allow workers to relax on their breaks and feel more at ease. Additionally, outdoor, shaded seating will allow people to work from outside if they wish.