How A Growing Arizona City Aims To Get The Right Balance Of Real Estate Assets

City planners all have the same end goal: to deliver the right balance of commercial and residential real estate to create vibrant, productive communities. But as their strategies evolve to reflect our increasingly digital world, a common challenge is how to strengthen existing assets while making room for new ones.

This is what Peoria, Arizona, northwest of Phoenix, has set out to do with its master plan to develop two key sites in the city, said David Valenzuela, chief business attraction officer for the City of Peoria Economic Development Services Department. The city has a unique opportunity to use undeveloped land to enhance existing neighborhoods to promote employment growth and a high quality of life, he said. 

“People are talking about Peoria like they never have before, not only because of how aggressive and strategic we’re being about our undeveloped areas, but also how we’re connecting our existing assets for a balanced and sustainable community,” Valenzuela said. “We are focused on bringing high-value elements to the community that our residents have asked for and potential workers would greatly enjoy.”

Bisnow spoke to Valenzuela about how Peoria intends to deliver a liveable city for everyone.

How To Bring The Right Amenities, Fast 

Much of the undeveloped land in Peoria is Arizona State Trust Land. When the state was formed more than a century ago, 9.2 million acres of land were put into trusts, with revenue mainly benefiting the state education system. State land parcels can eventually transfer to private interests through sale or lease. 

The city of Peoria is working closely with the Arizona State Land Department to master plan two large sections of land: North Peoria Gateway, which spans 1,600 acres, and Peoria Innovation Core, spanning 6,700 acres. The aim is to connect different centers of activity and employment across the city via transportation systems and strategic neighborhood planning. 

“By master planning, we have the advantage of being able to create a good balance across the city for both residents and workers,” Valenzuela said. “We can locate housing close to people’s work that is both affordable and scaled up to executive-level homes. By master planning all this from the start, we ensure efficiency.”

The city council has been working with the State Land Department over the past year on zoning plans for both areas. North Peoria Gateway was approved by the Peoria City Council in mid-October and Peoria Innovation Core is expected to get approvals in 2025. The State Land Department can now begin to auction land for employment development. 

This strategy allows the City of Peoria to be specific about which parcel of land can have what type of use, Valenzuela said. A second benefit is that once a developer purchases a piece of land at cost, development can begin immediately without needing to secure zoning.

“The huge advantage of zoning ahead of selling land is that developers know exactly what they’re getting and can move quickly to development,” he said. “This means we can make the most of opportunities much faster, adding the services and uses that residents and workers need.”

Valenzuela said the city expects to see significant development in the next five years in the North Peoria Gateway. In 2025, work will begin on infrastructure improvements along Lake Pleasant Parkway into the Peoria Innovation Core, including water, wastewater infrastructure and telecommunications. Construction of new businesses could begin in the next two to three years.

All planning has to be sustainable and match growth projections for the next 100 years, Valenzuela said. 

“The city has a 100-year water supply plan that is continuously updated to ensure that the right resources are available for the development to support itself,” he said. "The city has water today and will ensure it is there in the future."

Focusing On Job Creation

To provide more clarity about the evolution of Peoria as development continues, the city council established a five-year economic development strategy. A key part of this strategy is to encourage more employment opportunities, particularly by creating the Peoria Innovation Core. 

“Peoria is poised for the highest-quality economic and residential growth the city has ever seen,” Valenzuela said. “We’re the key to the entire Northwest region of greater Phoenix and what we’re doing now is driving success across that area.” 

The city has identified industries that are high-value and attract higher-skilled workers. Valenzuela cited the semiconductor industry as an example of the city's wider focus on advanced manufacturing and technology. Taiwan Semiconductor Manufacturing Company is located in Phoenix and Peoria wants to benefit from similar companies’ growth. Amkor Technology selected Peoria as the location for a $2B factory that will support TSMC and create the largest semiconductor packaging and test facility in the U.S.

The city is aiming to create facilities for businesses of all sizes. This will allow companies to remain within districts as they grow and expand while also attracting workers from nearby areas, he said. 

Amenities To Bring People Together

The City of Peoria’s master plan includes community offerings such as restaurants, retail, shopping, outdoor activities and entertainment. Valenzuela said zones have been established across the city that provide the right balance of commercial space. 

Valenzuela cited an intersection of four different commercial areas known as Four Corners, which totals 1.6M SF of retail and leisure space. Despite being more than two miles from any freeway interchange, the intersection provides assets that range from Target and Lowe’s Home Depot to independent ice cream shops, chain restaurants and independent restaurants. 

“The success of Four Corners speaks to the amount of traffic and money that flows through the intersection of the surrounding residential areas,” he said. “Our community is so active that it can support such a large retail and leisure base without needing to be right on the freeway.”

The city has begun to curate unique offerings, such as Harkins Theaters' first dinner and movie concept, Harkins Lake Pleasant CineGrill. Peoria's Old Town in the south is adding new retail that reflects the area’s heritage and growth, Valenzuela said. Overall, Peoria’s master plan encompasses a range of activities, including schools, hotels and sports.

 “Overall, we want to provide a range of uses across the entire city that are reachable for everyone, whether they live here or visit,” Valenzuela said.

This article was produced in collaboration between City of Peoria Economic Development Services and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.