Mixed-Use Space Council Subcommittee

Start Date: Announced at the June 12, 2025 Work Study Session 

Chair: Councilmember Chin

Subcommittee Members: Mayor Corey Woods and Councilmember Nikki Amberg

Purpose: The purpose of this subcommittee is to review and consider potential policy recommendations to encourage the activation of ground-floor retail space in mixed-use zoned properties. Activation of mixed-use zoned properties can enhance livability, visual appeal, and promote economic development, thereby resulting in greater economic outcomes within these zoned areas.

Background: Land designated in the City of Tempe as mixed-use is intended to be used for a mixture of residential and commercial uses within a development, with a potential density of up to 25 dwelling units per acre for MU-1 designation and ascending through MU-2 and MU-3 up to MU-4, which allows for density up to and above 65 dwelling units per acre in an urban core environment. According to 2023 statistics from the Tempe General Plan 2050 report, mixed-use zoned land currently accounts for 3.7 percent of land uses, or 756.3 acres. These figures are expected to increase in the future with our city’s population growth.     

Vacant ground-floor retail space in these mixed-use developments represents a missed opportunity to activate the buildings as intended, thereby not meeting the purpose of the mixed-use zoning. While developers are eager to build residential rental units in Tempe’s mixed-use zones and generally succeed in filling the development projects with residents, these buildings are sometimes left in a state that results in long-term commercial vacancies and empty, gray shells along their building frontages. These persistent vacancies have raised concerns among Tempe residents, who are seeking solutions.

A gray shell is an unfinished commercial space that requires finishing work for plumbing, electrical, flooring, walls, ductwork, and heating, ventilation, and air conditioning (HVAC). This cost burden to complete the infrastructure necessary may be prohibitive to entrepreneurs looking to start a small business and occupy the vacant space.  

This subcommittee examines the occurrence of vacancies, reviews options, and considers a municipal regulation that reduces the propensity for vacant ground-floor retail space in mixed-use developments.

Public Meeting Information:

Next meeting is Monday, Dec. 8, 2025, at 1 p.m., Tempe City Hall, Third Floor

Questions: Council Assistant: Ty Lee or 480-858-2260

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