Phoenix, January 22, 2026
Downtown Phoenix is gearing up for a transformative addition to its skyline with the Empire Group of Cos. breaking ground on a new 24-story apartment tower worth $165 million. Situated near the Phoenix Art Museum, this project underscores the ongoing urban revitalization and economic growth in the area. With 12,000 residential units added since 2000, the commitment to modern housing options illustrates the vibrant community’s continued appeal. Expected to break ground in February 2026, this development reflects investor confidence and the flourishing local economy.
Phoenix
Phoenix Prepares for New $165M Apartment Tower Near Art Museum
Downtown Phoenix is set to welcome a significant addition to its evolving skyline and residential landscape as Empire Group of Cos. prepares to break ground on a new 24-story apartment tower. This $165 million private investment underscores the continuing confidence in Phoenix AZ business growth and urban revitalization.
The upcoming apartment tower, located strategically near the Phoenix Art Museum, represents a substantial commitment to enhancing the city’s urban core. This project is a testament to the vision of local developers and their role in shaping a dynamic environment for residents and businesses alike, driven by entrepreneurial innovation. The decision by Empire Group to invest substantially in downtown Phoenix reflects a broader trend of private capital fueling economic expansion and job creation within the region.
The city’s favorable business climate and ongoing efforts to foster economic growth continue to attract such large-scale developments. These projects not only provide modern housing options but also contribute to the vibrancy of neighborhoods, supporting local commerce and creating a robust ecosystem for Arizona AZ entrepreneurs and residents.
Driving Urban Growth Through Private Investment
The planned 24-story apartment tower by Empire Group of Cos. is slated to break ground in February 2026, marking a pivotal moment for downtown Phoenix’s development. This $165 million project highlights the crucial role of private sector initiative in propelling urban transformation. Private investments, such as this one, are essential for stimulating construction activity, generating employment opportunities, and broadening the local tax base. The infusion of capital into major residential projects demonstrates a robust belief in Phoenix’s long-term economic trajectory.
Downtown Phoenix has experienced significant public and private investment, totaling $8.3 billion since 2005. This extensive capital injection has resulted in over 12,000 new residential units since 2000, with an additional 3,500 units currently under construction and nearly 2,000 more in the planning stages. Such sustained development underscores a vibrant urban core that continues to attract residents and businesses, reinforcing the area’s economic resilience.
The Evolving Phoenix Real Estate Landscape
The luxury apartment market in downtown Phoenix, while experiencing strong demand with 17,000 units absorbed over the past year, is also facing a notable increase in supply. Over the same period, 24,000 new units were completed, with an additional 23,000 units currently under construction. This surge in new construction has led to an overall vacancy rate of 12.2%, with luxury properties being particularly affected by rising vacancies and a 2.5% decrease in rents.
Despite these market adjustments, Phoenix remains a highly attractive destination for real estate investment. The metro area was recently ranked among the top 10 U.S. markets to watch in 2026, primarily due to strong job creation, continuous population growth, expanding manufacturing and tech sectors, and a relatively affordable cost of living compared to coastal regions. These fundamental strengths suggest that while short-term adjustments in the rental market may occur, the long-term outlook for Phoenix small business and large-scale investments remains positive.
Amenities and Lifestyle in Downtown Phoenix
While specific amenity details for the Empire Group’s new 24-story tower are yet to be fully disclosed, luxury apartment developments in downtown Phoenix typically offer a comprehensive suite of features designed to enhance urban living. For example, similar high-rise projects in the area frequently include amenities such as rooftop pools, state-of-the-art fitness centers, co-working spaces, and dedicated pet facilities. These offerings cater to a diverse resident base seeking a blend of convenience, comfort, and community within the vibrant urban core.
The strategic location of Empire Group’s tower near the Phoenix Art Museum positions future residents within immediate reach of cultural institutions and the thriving Roosevelt Row arts district. This proximity contributes to a desirable “live-work-play” environment, appealing to individuals who value accessibility to entertainment, dining, and cultural experiences. Such developments support the city’s goal of creating walkable, dynamic districts that attract talent and foster a robust local economy.
Economic Momentum and Future Outlook
Arizona’s economy has demonstrated remarkable growth, with a Gross Domestic Product (GDP) increase of 4.9% in 2023, positioning it as one of the fastest-growing economies Nationwide. Maricopa County, home to Phoenix, has been recognized nationally for its economic growth, reflecting significant increases in jobs and business investment. The state’s diverse industries, including technology, healthcare, and manufacturing, continue to attract businesses and a skilled workforce, which in turn fuels demand for both residential and commercial real estate.
The job market in Arizona experienced a 2.4% increase in job creation last year, surpassing the national average and indicating a resilient labor market. This sustained economic vitality reinforces Phoenix’s appeal to developers and investors who view the region as a promising market for long-term growth and stability. The development by Empire Group of Cos. is one more indicator of confidence in this positive economic trajectory for economic growth in Phoenix.
Community Engagement and Vision
The revitalization of downtown Phoenix is a collaborative endeavor, involving both private developers and community stakeholders. The Downtown Strategic Plan Update, initiated by the City of Phoenix, aims to align current development with the 2025 Phoenix General Plan, ensuring that growth contributes to a cohesive and vibrant urban fabric. These planning efforts emphasize positioning downtown for future investment, celebrating past accomplishments, and establishing goals for continued development that benefit the entire community.
The construction of new residential towers like Empire Group’s project is an integral part of this broader vision, contributing to the increasing residential density that supports local businesses, cultural institutions, and public amenities. As Phoenix continues its growth, the collaboration between private entities and public planning remains key to fostering sustainable and inclusive Phoenix AZ business development.
Conclusion
The groundbreaking of Empire Group’s $165 million, 24-story apartment tower near the Phoenix Art Museum signifies a forward stride in Phoenix’s ongoing urban development. This private investment not only provides new residential opportunities but also reinforces the city’s commitment to fostering a dynamic economy. While the multifamily market navigates a period of increased supply, the underlying strengths of Phoenix’s job growth, population influx, and business-friendly environment provide a solid foundation for continued prosperity. We encourage our readers to stay engaged with the ongoing transformation of our city and support the local businesses that make Phoenix a thriving place to live and work.
Frequently Asked Questions (FAQ)
What is the Empire Group project near the Phoenix Art Museum?
Empire Group of Cos. is planning to break ground on a new 24-story apartment tower near the Phoenix Art Museum.
What is the estimated cost of the Empire Group apartment tower?
The project is estimated to cost $165 million.When is the groundbreaking for the new apartment tower?
The groundbreaking for the 24-story apartment tower is planned for February 2026.
How has the multifamily market in Phoenix been performing recently?
The Phoenix apartment market is experiencing a persistent imbalance between supply and demand, with strong leasing activity (17,000 units absorbed) but also a surge in new construction (24,000 new units completed and 23,000 under construction), leading to a 12.2% overall vacancy rate.
What is the economic growth rate of Arizona?
Arizona’s economy experienced a Gross Domestic Product (GDP) growth rate of 4.9% in 2023, making it one of the fastest-growing economies Nationwide.
Key Features of the Empire Group Apartment Tower Project
| Feature | Detail |
|---|---|
| Developer | Empire Group of Cos. |
| Project Type | Apartment Tower |
| Number of Stories | 24 |
| Estimated Cost | $165 million |
| Location | Near Phoenix Art Museum |
| Groundbreaking | February 2026 |
Deeper Dive: News & Info About This Topic
HERE Resources
Phoenix’s 2026 Horizon: Building Economic Resilience
Phoenix’s Economic Engine: Fueling Growth Through Strategic Investments
Construction Activities Rise in August
Phoenix Rises as Key Apartment Construction Hub
Sharp Decline in Nonresidential Construction Starts
Construction Delays for Arizona’s Tallest Tower Astra
Astra Construction Delayed for Arizona’s Tallest Tower
Jersey City Secures $255 Million in Real Estate Refinancing
Fairfield Residential Acquires $244.8 Million Multifamily Portfolio in Phoenix
Phoenix’s Luxury Apartment Boom: High-End Living Spaces
Author: STAFF HERE PHOENIX WRITER
The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
