10-story office tower proposed at Phoenix's Biltmore Fashion Park
A 10-story office tower with ground-floor retail could be the newest addition at the Biltmore Fashion Park, a move that would bring one of very few new office buildings to the Valley since the COVID-19 pandemic and bucks a Valleywide trend of unused offices sitting largely empty.
Macerich, the mall’s owner, filed an application to modify the mall’s site plan to allow the office tower to be built on the southeastern portion of the site, along Camelback Road and 26th Street, on what is currently part of the parking lot.
The application submitted to the city said the proposed tower is “poised to redefine office spaces.” Phoenix-based RED Development, which is also leading the redevelopment of the former Paradise Valley Mall, now called PV, is listed as part of the development team for the office tower.
Very few new office buildings have been built since the pandemic, which made office use much less common. However, newer, higher-end office buildings have seen some success in leasing, even as many offices have remained vacant.
Also in the Camelback Corridor, east of the Biltmore, the Grove office development on 44th Street and Camelback Road, has been successful in signing high-profile tenants like real estate firm JLL and construction firm Clayco and Common Bond Development Group.
According to data from real estate firm Cushman & Wakefield, about 519,000 square feet of new office space is under construction around the Valley, with most of the concentration in Tempe. There is around 91.5 million square feet of offices already in existence around the Valley.
“With its coveted location, mixed-use concept, sustainable features, and a commitment to luxury and convenience, it represents a significant addition to the community and reimagines the office experience in Phoenix,” documents submitted to the city said. “It stands as a testament to the enduring allure of Biltmore Fashion Park and its potential to shape the future of the city.”
The Camelback Corridor is one of the Valley’s largest office submarkets, with more than 7 million square feet of office space in the area according to research from real estate firm Cushman & Wakefield.
The area also has some of the highest office rents in the Valley, with the average rent in the area reaching $37.99 per square foot at the end of 2023. At the end of 2023, the Camelback Corridor had an office vacancy rate of 22.5%, slightly lower than the overall Valley's average of 27.4%.
Office tower and apartments mentioned for Biltmore
Macerich’s CEO, Tom O'Hern, mentioned plans for both the office tower and an apartment complex at the Biltmore aFashion Center in the company’s fourth quarter 2022 earnings call, which took place in February 2023.
“At Biltmore Fashion, we're advancing plans for a 10-story, 250,000 square foot Class A office tower, including best-of-class retail and food and beverage,” O’Hern said on the call. “Plans are also evolving for a 250-unit luxury apartment complex at Biltmore.”
On the company’s earnings call that took place in May 2023, O’Hern again mentioned advancing plans for a luxury apartment complex at the Biltmore. However, the apartment is not included in the proposal for the office tower.
Additions also mentioned for Scottsdale Fashion Square
Along with the plans at the Biltmore, in February 2023 O’Hern said the company was also planning apartments and up to 500,000 square feet of office space at Scottsdale Fashion Square.
An attorney representing Macerich in the Biltmore office proposal did not respond to a request for comment.
The Biltmore office proposal is scheduled to be heard by a Phoenix Planning Hearing Officer on February 21. The proposal does not include a timeline of when the project might begin.
Reach the reporter at cvanek@arizonarepublic.com. Follow her on X, formerly Twitter: @CorinaVanek.
This article originally appeared on Arizona Republic: 10-story office tower with retail proposed for Biltmore Fashion Park
