Is Downtown Phoenix a Recession Ghost Town?

October 24th, 2011

I haven’t mentioned downtown Phoenix for a while. This is mainly because I’ve been busy  re-discovering Vancouver and haven’t had much time to reflect on my old stomping ground. However, last week, I received an email from an old acquaintance that I haven’t been able to ignore.

So for may Phoenix readers, here’s one more post for old times sake; and apologies if I channel a bit too much Jon Talton. For my new Vancouver readers, here’s a little education in Arizona urbanism.

Life in the Urban Desert

One of my biggest frustrations living in Phoenix was the sheer number of empty lots and vacant building in the downtown core. No matter how much we tried to make a foothold in the desolation, we were simply overwhelmed by the scale of our task; if not outright rejected.

Based on a ‘back of the napkin’ tally, over 40% of Phoenix’s core is either vacant or a surface parking lot. This is more than most Rust Belt cities, including Detroit. Indeed the entire city of Detroit could fit into just the vacant lots in Phoenix!  Yet while the decay of the Rust Belt is a national tragedy, the decay of downtown Phoenix is business as usual.

Making matters worse, the picture below was once a neighbourhood filled with historic—if rundown—homes. But instead of promoting their restoration and rehabilitation, the city cleared the area. The are was first cleared to make room for a fool hardy idea attract a NFL football stadium. The stadium eventually ended up in suburban Glendale. More recently, they have promised a ‘Bio-science Campus that has failed to gain much traction. In the meantime, downtown Phoenix is left with one of the biggest urban scars in North America.

Just south of this picture sits yet another parking lot. It was recently created by the City of Phoenix and Arizona State University on the site of a vintage mid-century hotel. Despite a concerted effort—and even a lawsuit—the powers than be decided that Phoenix needed yet more parking, leaving community members literally stewing on the dusty asphalt.

In cities like Detroit, people are taking advantage of the depressed real estate prices to incubate small businesses. In Phoenix—the epicenter of the real estate industrial complex—property owners, including the city, are sitting on their lots. They are waiting for the real estate market to rebound enough to cover their investment. They’d be better of waiting for Godot. if there is any hope for downtown Phoenix to rise again, they need to cut their losses and move on.

I hate to see downtown Phoenix criticized. Especially because so many people are working diligently to make it their oasis in a urban desert. But sometimes a city needs a slap in the face to wake up and realize their dire straights. Perhaps this dubious distinction from The Fiscal Times is it:

9 Worst Recession Ghost Towns in America: Downtown Phoenix, AZ

Downtown Phoenix, AZ Photo: Google Earth
Downtown Phoenix, AZ

Before the housing market crash, an acre in downtown Phoenix was selling for about $90 a square foot. Today, it sells for $9 a square foot. Empty dirt lots checker the area, where developers once dreamed of high-rise condos and office buildings, and many businesses have closed their doors.

Residents hope building will happen again once the market recovers, but in the meantime neighborhood organizers push for temporary fixes to the eyesore, like planting sunflowers and projecting movies onto the side of existing buildings.

4 thoughts on “Is Downtown Phoenix a Recession Ghost Town?

  1. “Before the housing market crash, an acre in downtown Phoenix was selling
    for about $90 a square foot. Today, it sells for $9 a square foot.”

    That can’t be accurate.

  2. This is lacking quality data. Sales tax revenues are up, businesses are more crowded today than they have been in the last five years, at least. And new venues, bars and restaurants are opening every month. I just don’t see the annecdotal or real data to prove this, besides one low-quality measure about empty lots. Yes, we have too many empty lots, but that doesn’t say nearly enough about the experience on the ground.

    1. Sam, I agree it is better than it was, but other than light rail (which has seen service cuts), it has little to do with the planners or the city; and more to do with demographics and the community that the city continues to largely ignore. If anything it was accomplished despite Mayor Gordon’s ‘big box’ thinking or Frank Fairbanks focus on efficiency over vitality. Heck, we couldn’t even get a dog park or decent bike racks—staples of urban living—in the core.

      Until the city stops banking empty lots (they are the largest owner of dirt lots in downtown) and building new parking lots, it will never live up to its promise. For every step forward, there is a step sideways, if not backwards. For every new business that opens, I hear of several closing (witness Sbarro, Verde, PastaBar, Paisley Town and Thai Elephant to name a variety) or reducing hours (The Duce and almost the entire CityScape). And there still isn’t a 24 hour restaurant anywhere downtown. Also, when I left I did a tally, and there were actually more empty lots in Phoenix when I left than five years earlier and over 700 more surface parking spots (not counting the expanded CityScape and Freeport Mcmoran parking structures and the one being built for the Med School, which added several hundred more). So I’m glad the city is making more money in tax dollars, hopefully it help cover the hundreds of millions in forgone revenue from out of state developers and chains.

      I will give kudos to the people who are trying to make downtown a better
      place, but until the city gets it, and start supporting rather than stalling
      them, it faces an uphill battle. Here’s hoping that Stanton wins and can
      start turning City Hall around to reflect the will of the community and
      small developers instead of pandering to the big players like ASU and out of
      state corporations and big box developers. I spent 5 years fighting this
      attitude and made zero progress. Kudos to those who continue the good
      fight.

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