One of Phoenix's best-known shopping centers could soon swap some of its big-box territory for balconies. Developers behind Camelback Colonnade are asking the city to rezone a large chunk of the long-running retail hub so they can put apartments on the western half of the property, a potential shake-up for a Camelback Road corridor long defined by national chains and wide parking lots. Neighbors, shoppers and business owners are expected to keep a close eye on what happens next at City Hall.
According to the Phoenix Business Journal, Federal Realty Investment Trust and RED Development have asked Phoenix officials to rezone roughly 23 acres on the Colonnade's west side to allow multifamily development. The outlet notes that the complex sits in a densely populated part of metro Phoenix and that the owners are now eyeing housing as a fresh use for part of the site. If the city signs off, a sizable retail parcel would pivot toward residential and mixed-use possibilities.
Federal Realty bought Camelback Colonnade from RED Development in 2021 in a deal reported at about $162.5 million, a price that underscored the site's underlying market value, as reported by AZ Big Media. Since that sale, ownership has moved to freshen up the complex with new types of uses. Kiln announced a coworking outpost in the Camelback/Biltmore area in 2024 in a press release, and the property's leasing brochure touts the center's size and roster of national tenants, points the developers lean on when arguing that nearby housing would be a logical next layer.
What the rezoning would change
The rezoning request would clear the way for multifamily housing on the western half of Camelback Colonnade and could support apartments, townhomes or mixed-use buildings, although no formal site plan or unit count has been released yet. The west side is not a small slice of asphalt. The Phoenix Business Journal pegged it at about 23 acres, which means any conversion would be significant in size and would likely influence circulation patterns and parking for the retailers that remain next door. The owners have framed the move as an effort to make the property work harder economically while keeping shopping and service tenants on the remaining parcels.
Next steps and neighborhood reaction
The proposal has to survive Phoenix's public review process, including neighborhood meetings along with Planning Commission and City Council consideration, in line with the city's PUD and rezone workflow. Given the Camelback corridor's mix of dense retail and nearby homes, public hearings are expected to feature familiar flashpoints such as traffic, parking and preserving retail jobs. City staff and the development team will roll out detailed materials at those hearings, giving residents a chance to comb through the fine print and respond once official filing dates are posted.
The application marks a clear pivot for one of the Valley's better-known shopping hubs and fits into a broader trend of turning aging retail properties into housing near employment and transit corridors. For now, the project sits at the entitlement stage. Residents who are curious or concerned can track public filings through the city and follow local coverage for updates on hearing dates and eventual design details.
