How revitalization of Mill Avenue represents Tempe transformation

Settled in the East Valley, Tempe, a city lined with red bricks, bustling roads, a sparkling lake that borders its college campus and the iconic Mill Avenue, is seeing new developments and revitalization to its 131 years of history. 

Despite the restrictions Tempe Town Lake poses, the city continues to find different ways to expand within its limits as its population increases and its lifestyle shifts to an urban-focused experience.

“I’ve been here a little over a decade, and on 7th Street, there’s a whole lot of new high rises that have been built and new office developments that have gone up,” says Lori Foster, president and CEO of Downtown Tempe Authority. “Residential has increased by a large amount, as have office tenants. You have some of the best Class A office space in the Valley here.”

The Downtown Tempe Authority, a nonprofit organization formed in 1993, helps alongside the City of Tempe to keep Downtown Tempe thriving with history and culture. From college students to the folks in a retirement home, Foster points out the different demographics of people who reside in Tempe that affect and influence the developments made in the city. 

Over the years, Tempe has seen significant population growth, with many coming to study at ASU. With about 55,500 ASU students in Tempe, several apartments and student housing projects began development in the downtown area.

Rambler Tempe, a high-rise and student-orientated housing complex, started construction in March 2024 and plans to finish in May 2026. The building emphasizes urban living that promotes healthy lifestyles, with several fitness areas within the complex.

Moe Mougharbel, the senior project manager of Rambler Tempe, explains that less people want to commute to college these days, making student housing that is close to campus more popular than ever. 

“I actually attended ASU a long time ago, when Tempe had nothing but flat buildings that were one or two stories,” Mougharbel recalls. “The student population has grown [substantially] since the ‘80s, so there is quite a bit of demand for higher-end housing considering a lot of the [existing] apartments are fairly old.”

Mougharbel says people will see more student housing developments go up along Lemon Street and even across the street from Rambler Tempe. 

“I feel like the community is very helpful and the City of Tempe is also supportive of this kind of construction that is really enhancing the landscape that you see in Tempe,” he continues. 

Most residents of Tempe know about the iconic Mill Avenue, a district filled with bars, restaurants, stores and businesses. Over the years, however, the area has been reshaped. 

In April 2024, the City of Tempe kicked off its “Refresh Tempe” initiative, a project to revamp Mill Avenue from University Drive to Rio Salado Parkway — making it the street’s first renovation in nearly 40 years. 

Refresh Tempe will include more than 120 trees, new electric and irrigation lines, and improved sidewalk accessibility. Alongside the renovation, several businesses have also joined the Mill Avenue community.  

Ally Dykstra, the business liaison and placemaker of Downtown Tempe Authority, explains how the street once had flourishing trees but, due to the old infrastructure under the street, the trees were unable to be properly taken care of. With upgraded irrigation systems, the new plants will be able to grow into large, vibrant trees that provide shade during the Arizona heat. 

Dykstra also explains how that sidewalks will be expanded for more pedestrian accessibility while preserving the historic red bricks.

“It’s important to have the best urban experience because that means you’re in a safe, clean and lively place that makes people want to come back,” Dykstra says.

Refresh Tempe will also expand parking opportunities with multispace lots instead of meters to allow for people to have easier access. 

“We always have to keep finding out what that next thing is going to be for Downtown Tempe, as well as what community members want and what businesses can provide,” Dykstra says.

As Mill Avenue continues to upgrade its environment, new businesses and developments add to the bustling atmosphere. For example, Phoenix Design One (PDO), recently completed the Crest Insurance Group office at 100 S. Mill Ave., a mixed-use building. 

Sophia Humphrey, the principal of PDO who specializes in corporate spaces, has watched Mill Avenue’s evolution over the last 18 years as the new Tempe Streetcar became operational, younger companies started to fill spaces in the district and several other buildings go vertical. 

“It’s really about collaboration, community and getting employees to the office space, and being excited about having great amenities around you,” Humphrey says. “That is really the huge push we’re seeing right now.” 

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Historically, Mill Avenue consisted of financial businesses yet a large influx of tech companies has started to shift that dynamic — and existing tenants are taking note.

“I think a lot of the financial companies are looking for a younger, more energetic vibe as they mold or chase talent,” Humphrey says.

Unlike older offices, newer buildings incorporate richer, darker tones and reflect trends seen in the hospitality sector. Both Hayden Ferry Lakeside and Gateway at Tempe refreshed their lobbies and added new amenities, such as a coffee shop, which Humphrey says has helped that section of Mill Avenue come “back to life.”

“Another thing we’re seeing pop up on that corner that we didn’t see much of in the past are spec suites thanks to the amenities,” Humphrey explains. 

Jared Cauffield, associate vice president at Western Retail Advisors, explains that people have long viewed Mill Avenue as a bar-heavy party scene — but now that image is starting to change. Alcohol consumption has decreased across the U.S., and the student consumer demographic has a growing emphasis on health.

“Mill Avenue’s identity is maturing,” Cauffield explains. “It’s still predominantly going to be college students, but I do think that more of the retail will focus on a customer base who want something more sophisticated and driven by wellness and experiences.”

The street has also gone through a recent change in tenants. Mellow Mushroom, P.F. Chang’s and Starbucks have left Mill Avenue and been replaced with restaurants such as Filthy Animal. Cauffield says there is a trend of chain-based concepts being pushed and filled by local businesses. 

“They’re unique and interesting,” Cauffield says. “People are yearning for those kinds of places.”

The city’s diversity creates a broad client base for retailers and a compelling case for brands to locate on Mill Avenue or Tempe more broadly.  

“A major strength for Mill Avenue is all the high energy urban retail,” Cauffield concludes. “You can’t really get that in many other places across the Valley.”