Feb. 21, 2008
Contact: Mike Phillips, Media Relations, Manager, (480) 312-7825
Downtown Scottsdale reinvestment approaches $3.3 billion
Reinvestment in southern Scottsdale and the city’s Downtown continues to be strong, according to a semi-annual city assessment of economic activity.
The total reinvestment in Scottsdale, south of Chaparral Road, is now approaching $3.3 billion during the past five years. Six months ago, that figure was $3.1 billion, in 2006 it was $2.6 billion, and in 2004 it was $1.5 billion.
The latest city assessment of the area also reflected a number of positive findings and trends:
- In addition to the $3.3 billion in current projects, there are a number of other proposed projects, such as the Waterview and the Entertainment District projects, which are not yet listed since they do not yet have formal development approval. These projects, if they move forward, will add at least another $500 million to the reinvestment figure.
- This area has seen almost 4,000 new residential units either built, in process, or planned since January 2003. Condo conversions have not been included in this figure.
- According to a recent ASU study, the 2007 median resale home price for southern Scottsdale was $308,500. This reflects a 50 percent increase from the 2000 median resale home price of $205,000.
- This area is seeing a significant amount of reinvestment in the existing housing stock. In the last five years, there have been 666 permits issued (valued at over $21 million) for major remodeling or additions, and an additional 6,504 permits issued (valued over $92 million) for minor home improvements. This is a significant increase from only a year ago, when the sum of both was just over $75 million.
- The demographics of the area are changing as well, including growth in both population and median income levels. An estimated 68,463 people call southern Scottsdale home, representing an increase of 7.2% since 2000 and accounting for over one-quarter of the total Scottsdale population. Median household income has increased 20.1 percent in that same time frame, from $41,839 to $50,247.
- This area also has a younger population with a median age of 38.2, compared to a median age of 40.2 for Scottsdale as a whole.
- There is continued improvement in quality of life categories, such as a lower crime rate and a rise in educational test scores. Over the last year, Scottsdale Police District One has seen a reduction in property crime of 28 percent and violent crime has decreased 1.6 percent.
- Since January 2003, public schools have invested almost $85 million in major school improvements. Already considered one of the top school districts in the state, the Scottsdale Unified School District has more "excelling" schools (based on state standards) than any other district in the state.
- Projects are still occurring in all real estate sectors – residential, office, retail, hotel, and cultural/institutional uses. However, a number of smaller residential projects that were in the planning stages just six months ago are now on hold while the market adjusts, and larger residential projects are considering the addition of other types of uses to make their projects more feasible.
While Downtown Scottsdale has seen the majority of this investment, roughly $1.9 billion or about 60 percent of the total, the balance of southern Scottsdale is now attracting a significant amount of interest from developers, and appears to be where many of the new projects in the coming years will focus.
The report indicates that the area will continue to enjoy long-term, sustained growth as new development comes on line. The value of private sector projects slated to be built in the Downtown and in southern Scottsdale accounts for $889 million, more than 27 percent of the total estimated investment listed in the report for the past five years.
A map and description of southern Scottsdale investment activity is available at http://www.scottsdaleaz.gov/Assets/documents/reinvestment/Investment_Jan08.pdf
Below is a breakdown of reinvestment activity in southern Scottsdale. (Dollar figures are in millions):
Completed Projects Private Public Total
Within downtown: $769.5 $18.8 $788.3
Balance of area: 248.9 167.3 416.2
Projects in Process
Within downtown: 647.5 19.4 666.9
Balance of area: 373.7 93.2 466.9
Planned Projects
Within downtown: 485.6 27.6 513.2
Balance of area: 403.4 11.7 415.1
Total: $2,928.6 $338.0 $3,266.6
(89.7%) (10.3%)
Note: The “Projects in Process” category includes projects that are actually under construction or are in the city approvals process (zoning or building permits), while “Planned Projects” are those that have been announced only (but most of which are likely to be built within the next three years). Also note, the Public category includes investments made by the City, the Federal Government, and the Scottsdale Unified School District.