PHOENIX Cushman & Wakefield Global Cities Retail Guide

Cushman & Wakefield | Phoenix | 2018 0 Thanks to its natural beauty, sunny skies, manicured golf courses, high- end shopping, and sports and cultural amenities, Phoenix is a world-class destination.

Each year, millions of people are drawn to the Valley of the Sun, as the Phoenix area is known, taking in its spring training baseball games, spa resorts, museums and other inviting attractions. Visitors and residents alike enjoy a plethora of offerings such as golf, hiking, shopping, and culinary delights. While the warm climate brings people to Phoenix, its affordable housing and comparatively low cost of living keep people here. The population has increased 12.4% since 2010 and 38% since 2000, more than double the U.S. average. Over the next 10 years, the population is expected to grow by another 900,000 residents or 19%. Additionally, an average of 77,000 jobs are projected to be added in 2018 and 2019. The Valley has 231 million square feet of retail space spread over 250 square miles. A dozen malls act as anchors in the market’s retail landscape, which includes power centers, community centers, and neighborhood centers in addition to stand-alone restaurants and other PHOENIX freestanding retail. The most prominent and popular retail areas are located in Camelback Corridor, Old Town OVERVIEW Scottsdale, and North Scottsdale.

Cushman & Wakefield | Phoenix | 2018 1 PHOENIX KEY RETAIL STREETS & AREAS

CAMELBACK CORRIDOR NORTH SCOTTSDALE The Camelback Corridor is Phoenix's premier retail, hotel A collection of three major retail centers defines another and office neighborhood. Anchored by Biltmore Fashion prominent retail submarket, North Scottsdale. The area is Park and flanked by the Biltmore Hotel, the area flanked by numerous resort hotels and championship golf is home to numerous high-end fashion tenants, nationally courses, and is anchored by Kierland Commons, recognized restaurants, and three class A office projects Scottsdale Quarter, and The Promenade, all three of offering 2.4 million square feet of rentable space. The which feature high-end retail offerings and some of the area hosts most of the city’s finance, insurance and real finest restaurants in Metropolitan Phoenix. Inspired by estate companies during the day, and entertains workers quaint city districts where charming streetscapes are lined and their families at night and on the weekend. with unique storefronts and cafes with residential above, the "Main Street" feel of the area is unique to the Phoenix market.

OLD TOWN SCOTTSDALE MILL AVENUE Old Town Scottsdale provides visitors and residents Mill Avenue is a historic street in Tempe. Located in north opportunities to shop, dine, tour museums, see historic Tempe adjacent to Arizona State University, the street structures, and enjoy the nightlife. Amidst designated runs through a popular, pedestrian-friendly shopping and historic buildings, shoppers can find specialty retailers nightlife district. Lined with local retailers, restaurants and including western wear outfitters, booksellers, art bars, the area draws patrons from across the Valley. Mill galleries, home décor shops, boutiques selling Southwest Avenue plays host to many street fairs and city festivals. jewelry, restaurants, and numerous nightlife options. The avenue connects the newest office towers in the Although not anchored by national retailers, the district region to new and under-construction residential towers draws patrons looking for a unique shopping experience. for professionals and students.

Cushman & Wakefield | Phoenix | 2018 2 PHOENIX KEY RETAIL STREETS & AREAS

WESTGATE ENTERTAINMENT DISTRICT SCOTTSDALE FASHION SQUARE Westgate City Center is a mixed-use development located A key area just north of Old Town Scottsdale is the in the west side of Metropolitan Phoenix. Described as a Scottsdale Fashion Square, the U.S. Southwest's super-regional destination for shopping and distinctive address for premier shopping, dining, and entertainment, Westgate is part of a sports complex that entertainment. It is the largest shopping destination in the features the arena for Arizona Coyotes (National Hockey Southwest, offering a collection of more than 240 retailers. League) with the stadium for Arizona Cardinals (National In fall 2018, the mall will complete an upscale Football League) located to the south. Taylor Swift redevelopment bringing Louis Vuitton, Breitling, Hublot, debuted her 2018 summer tour at this arena. These Omega, Jimmy Choo and others into new space. venues, in addition to a Cabela's sporting goods store, Scottsdale Fashion Square also offers a host of AMC Theater and Dave & Buster’s, attract users year- entertainment and dining opportunities including multiple round. Additionally, Tanger Outlets opened a 388,000- restaurants and numerous specialty food selections. square foot mall at Westgate, bringing more than 70 retailers to the area.. Two notable features at Westgate include the WaterDance Plaza, an events plaza featuring a 60,000-gallon "dancing fountain" display that was inspired by the more elaborate display at the Bellagio casino in Las Vegas, and an agglomeration of electronic signage and media boards said to be the largest "Media & Signage District" west of Times Square, earning the nickname "Times Square of the West.“ The site recently sold, and more developments are planned.

Cushman & Wakefield | Phoenix | 2018 3 PHOENIX MARKET OVERVIEW

KEY AREAS / CONSUMER MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT RANGE OF UNIT STREETS/SHOPPING PROFILE FOR UNIT OF 2,000 SIZES CENTERS SQFT

Biltmore Fashion Park Tourists, high-end Saks Fifth Avenue, Macy's, Apple Arhaus Furniture $40.00-$50.00 2,500 sf and up retail, nearby office Store, Ralph Lauren, lululemon employees

Old Town Scottsdale Tourists, artists, Local stores, mostly owner occupied, Upscale Offices like Weebly & $20.00-25.00 psf 1,000 sf and up trendsetters regional and national restaurants, Ascentium boutique

Scottsdale Fashion Mass market, locals, Neiman Marcus, Nordstrom, Macy's, Georgiou, Diane von $65.00 750 sf and up Square families, tourists Armani Exchange, Ann Taylor, Furstenberg, ivivva Gucci, H&M, J Crew, Jimmy Choo, Hublot

North Scottsdale Mass market, locals, Apple Store, Anthropologie, H&M, Arhaus Furniture, American $30.00-$40.00 1,000 sf and up trendsetters, tourists Nike, Urban Outfitters, Restoration Girl Hardware

Mill Avenue Tourists, students, Local stores, mostly owner occupied, Dierks Bentley’s Whiskey Row, $23.00-$40.00+ psf 1,000 sf and up locals Restaurants, AMC Theater, Urban Snooze AM, Postinos Outfitters, Gordon Biersch (restaurants)

Westgate City Center Sports enthusiasts, Tanger Outlets, AMC Theater, Dave & Busters, Fractured $35.00 1,000 sf and up tourists, locals Quiksilver, Yardhouse, Crave, As Prune You Wish

Downtown CBD Tourists, CBD workers, Urban Outfitters, Lucky Strike, Stand Orange Theory, Grabbagreen, $30.00-$40.00 psf 600 sf and up theater-goers, Up Live Fractured Prune convention attendees

Cushman & Wakefield | Phoenix | 2018 4 PHOENIX SHOPPING CENTERS

SCOTTSDALE FASHION SQUARE A key area just north of Old Town Scottsdale is the This 1.3 million square foot mall has an exciting history Scottsdale Fashion Square, the U.S. Southwest's and a bright future. Located on the Salt River near Arizona distinctive address for premier shopping, dining, and State University and the intersection of two major entertainment. It is the largest shopping destination in the highways, the stores are aimed at a wide variety of Southwest, offering a collection of more than 240 retailers. shoppers. The outdoor promenade concept has one of In fall 2018, the mall will complete an upscale Tempe’s 6 splash pad locations and hosts music, and redevelopment bringing Louis Vuitton, Breitling, Hublot, hosts film premieres in a 600-person theater. Omega, Jimmy Choo and others into new space. Scottsdale Fashion Square also offers a host of entertainment and dining opportunities including multiple restaurants and numerous specialty food selections.

KIERLAND COMMONS is updating this 1963 property in the Camelback This mall is in North Scottsdale, near some of the area’s Corridor, converting it from shopping mall to Lifestyle most expensive housing and newest spa properties. The Center. Located in the heart of Phoenix’s financial mall boasts a Shake Shack, Tesla, and many other services district, this mall was the highest performing in national premium brands. This Macerich property is a Macerich’s Arizona portfolio in 2017. The park is adding a Main Street lifestyle center. fitness center in 2018. Williams Sonoma is expanding, along with existing fashion tenants and Apple Computer.

Cushman & Wakefield | Phoenix | 2018 5 PHOENIX FOOD & BEVERAGE

Influenced by the extensive Hispanic Twice each year, area restaurants participate in Restaurant Week, a statewide affair that gives foodies the culture and proximity to Mexico, chance to explore culinary delights from hidden taco Phoenix is renowned for authentic shops and steakhouses to high-end, award-winning white Mexican food in local restaurants tablecloth eateries. Arizona Restaurant Week celebrates the best the state has to offer, with well over 100 Phoenix across the metropolitan area. area restaurants participating. Additionally, because Phoenix is a Town and Country, located at 20th Street and Camelback, melting pot of transplants from recently completed a renovation that added Nordstrom other regions of the U.S., Phoenix Rack, The Container Store, Orvis, and Forever 21. In also has some of the finest cuisine conjunction with its opening, several restaurants opened, providing new offerings to support the Biltmore area offerings the country has to offer. including Snooze AM, Tokyo Joe’s and Hopdoddy. Fox Restaurant Concepts, founded in Tucson in 1998, has Given the influence of football, baseball, basketball and exploded onto the Phoenix dining scene with a dozen hockey, as well as tier-two sports, college, NASCAR, PGA different restaurants that appeal to restaurant-goers of all golf and MLB Spring Training, it is no surprise that sports ages and tastes. Usually located near popular shopping bars are prevalent around Phoenix. Locally owned destinations, Fox has launched such wildly popular offerings such as Zipps Sports Grill, Blue 32 Sports Grill, concepts as The Henry, Culinary Dropout, NoRTH, Olive Santisi Brothers and Majerle’s Sports Grill maintain a & Ivy, and True Food over the past few years. strong following. National concepts that have recently Drawing from the downtown labor force, conventions and been introduced across Phoenix include Tilted Kilt and sports events, Cityscape, a relatively new downtown Yard House. mixed-use development recently launched a variety of Lastly, local favorites such as Los Dos Molinos (Mexican), restaurants including Blue Hound Kitchen featuring Pizzeria Bianco (Italian/Pizza), and Chelsea’s Kitchen contemporary American food in an urban setting. (Contemporary) have all earned a following on the Additionally, Fox Restaurant Concepts opened The national scene and are favorites of tourists and locals Arrogant Butcher at Cityscape, a menu fused with alike. seafood, steaks and burgers.

Cushman & Wakefield | Phoenix | 2018 6 PHOENIX FOOD & BEVERAGE MARKET OVERVIEW

KEY AREAS CONSUMER FOOD & BEVERAGE OPERATORS RENT FOR 3,500 PROFILE INCLUDING SQFT UNIT

North Scottsdale Fashion/retail Capital Grille, Bourbon Steak, Hopdoddy, $35.00-$60.00+ psf district with Dominicks, Flemings, PF Changs nearby resorts attract tourists and locals

Camelback Corridor Office/fashion/ret Capital Grille, True Food, Vincent's, $25.00-$55.00+ psf ail/hotel district Chelsea's Kitchen, Donovan's Steak and attracts tourists Chop House, The Gladly and locals

Old Town Scottsdale Arts/fashion Cowboy Ciao, Culinary Dropout, $25.00-$40.00 psf district attracts SumoMaya, PF Changs, Maestro’s City tourists and locals Hall

Downtown Phoenix CBD attracts Arrogant Butcher, Blue Hound Kitchen, $18.00-$35.00 psf convention-goers Bitter & Twisted and sports enthusiasts

Gilbert Bedroom Postino, Barrio Queen, Ohso $40-50 psf NNN Community, Engineering/ STEM firms

Tempe Power Center The Keg Steakhouse, Kabuki, Culinary $25.00-$40.00+ psf retail with nearby Dropout, House of Tricks, PF Changs local retail district, ASU

Cushman & Wakefield | Phoenix | 2018 7 ERIKA SCHANKE Managing Director Americas Retail Services 1290 Avenue of the Americas , NY 10104, USA Tel: +1 212 841 5024 Mob: +1 404 680 4363 [email protected]

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