Downtown Is the New Economic Engine

Pulsing with the personality of the municipality it anchors

by RaeAnne Marsh

A few years ago, Fry’s made big headlines when it opened a grocery store in downtown Phoenix. Why the hubbub and what the significance was, RED Development’s Mike Ebert discusses in the Phoenix section of this cover story. But point is, downtowns are important economic sectors.

What’s driving their growth, and how are cities that are often folded into the general “Metro Phoenix Area” designation accomplishing this while maintaining their individual identity?

Each downtown is a story in itself.

Pinyon Coastal Mediterranean; photo by Kevin Brost, courtesy of Hi Noon Hospitality

City of Scottsdale

“Successful downtowns provide a wide range of experiences in a walkable environment,” explains Kevin Burke, AICP, senior director of economic development and tourism at the City of Scottsdale. “The strongest downtowns combine restaurants, hotels, housing, offices, galleries, retail, public spaces and events in a compact, easy-to-navigate setting that creates a sense of place and draws activity throughout the day and into the night.”

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Blue Corn Café & Bakery; photo courtesy of Chef Nick

City of Mesa

“Downtown gets cooler every day,” says Jimmy Cerracchio, executive director of Downtown Mesa Association, which was formed in 1985 by the commercial property owners of Downtown Mesa as a tool to help with the revitalization of the Downtown square mile. Noting the area is trying to grow in a smart and healthy manner by aiming to keep local businesses healthy, he says, “Most property owners are committed to having unique and locally owned commercial tenants, and the city is a great partner in helping businesses navigate processes to open and by providing a variety of housing options.”

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Tempe; photo courtesy of Downtown Tempe Authority

City of Tempe

“A thriving downtown isn’t an accident — it’s mix, management and momentum. Tempe is writing that playbook in real time, blending strategic urban planning, intentional placemaking and collective community effort to ensure the next chapter is even brighter than the last,” says Lori Foster, LPM, president and CEO of Downtown Tempe Authority.

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Water Tower Plaza; photo by Foskett Creative, courtesy of the Town of Gilbert

Town of Gilbert

The Town of Gilbert eschews the generic term “downtown” for a designation that not only identifies the area but encapsulates its personality: The Heritage District.

We’re seeing strong interest in the Heritage District because both residents and businesses are seeking places that encourage people to stay longer and do more,” says Jennifer Graves, MPA, CEcD, MEDP, the Town’s interim director of economic development, explaining, “Consumers want walkable destinations where they can layer multiple experiences into one visit, and businesses benefit when visitors spend more time exploring, dining, and engaging. That’s why new developments like Heritage Park and South Anchor are bringing a mixed-use model to the district, supporting new residential options with planned dining and retail elements.”

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DTPHX Skyline 2026; photo courtesy of Downtown Phoenix Inc.

City of Phoenix

“On the consumer side, people are gravitating toward places that feel authentic, welcoming, walkable, safe and community-oriented. Downtown Phoenix delivers on all of that,” says Devney Majerle, president and CEO of Downtown Phoenix Inc. (DTPHX), speaking of the interest behind the growth of downtown Phoenix. “The level of creativity in the environment is increasing every single day, attracting residents, visitors, and talent who want to be part of our dynamic live, work, play, learn, and create neighborhood.” And on the business side, she says, “Downtown has a diversified employment base and has become a magnet for technology and innovation, biosciences, arts and culture, and culinary experiences. It’s a true melting pot, and businesses recognize that being here means being part of a thriving, creative and interconnected ecosystem rather than operating in isolation.”

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