PHOENIX, ARIZONA (Sept. 8, 2026) — One of central Phoenix’s longtime retail destinations could be headed for a significant mixed-use transformation as Federal Realty Investment Trust and RED Development move forward with plans to add multifamily housing and broaden development options across the western portion of Camelback Colonnade.
The developers are seeking to rezone approximately 23 acres on the western half of the shopping center to accommodate a mix of multifamily residential, retail, restaurant and office uses.
The Camelback Village Planning Committee recommended approval of the rezoning request at its Sept. 1 meeting. The case is scheduled to advance to the Phoenix Planning Commission on Oct. 1 before ultimately going to the Phoenix City Council for consideration.
An initial residential component calls for a 216-unit multifamily development on approximately 2.5 acres on the southwest side of Camelback Colonnade near Highland Avenue and State Route 51. The site currently includes underutilized parking and a Phoenix Public Library branch.
The rezoning would position the owners to gradually introduce higher density development into one of Phoenix’s most established retail corridors while retaining the shopping center’s significant retail presence.
As part of the rezoning conditions, the developers would also contribute toward construction of a new pedestrian bridge across SR 51 adjacent to the property. Funding could later be reimbursed as specified phases of the larger redevelopment are completed.
Changes are already underway elsewhere at Camelback Colonnade.
Burlington recently opened as a new anchor tenant at the center, while Dutch Bros is pursuing plans for a 986 square foot drive through coffee shop on approximately 0.72 acres between In-N-Out Burger and Fifth Third Bank on the eastern side of the property. The Dutch Bros project remains subject to city approval.
Camelback Colonnade, at 1919 E. Camelback Road, dates to the 1960s and remains one of the Valley’s best-known regional shopping centers. Current tenants include Fry’s Marketplace, Best Buy, Marshalls, PetSmart, Old Navy, Bath & Body Works, Ulta Beauty, Michaels, Staples and Floor & Decor. The property also includes Nordstrom Last Chance, one of only a limited number of the discount concepts operating nationally.
Its location near Camelback Road and SR 51 places the center in the heart of the Camelback Corridor, close to Biltmore Fashion Park, the Arizona Biltmore resort and a large concentration of offices, restaurants and residential development.
The proposed residential addition represents another example of the broader shift underway at mature Valley shopping centers, where owners are increasingly looking beyond traditional retail uses and introducing housing and other higher density development to established commercial properties.