Downtown Phoenix is preparing for a new landmark on its skyline—and Arro is about more than height.
Formerly known as Astra, Arro is a proposed two-tower mixed-use development from Empire Group of Companies through its luxury urban-infill division, Aspirant Development. Planned for approximately 1.8 million square feet in Downtown Phoenix, the project is designed to bring together residential, hospitality, office, retail, dining and entertainment uses in one vertically integrated destination, according to AZ Big Media’s coverage of the Arro development.
At the center of the project is a 541-foot north tower, which is expected to become Arizona’s tallest building upon completion. A second tower is planned to rise approximately 425 feet, creating a significant new presence along Downtown Phoenix’s evolving skyline.
A Mixed-Use Project With Multiple CRE Components
Arro’s scale is notable, but its mix of uses is what makes the development particularly relevant from a commercial real estate perspective. Arizona Foothills Magazine’s coverage of Arro’s mixed-use plans highlights a development designed to bring residential, office, hospitality, retail and dining together within a single downtown destination.
The north tower is planned to include:
- 380 Class A+ residential units
- The Optimist, a planned 250-key luxury lifestyle hotel
- A roughly 16,000-square-foot multi-level restaurant and nightlife concept spanning the top two floors
The south tower is planned to include:
- Approximately 150,000 square feet of Class A office space
- Approximately 30,000 square feet of retail and restaurant space
- A 275-unit luxury co-living component
The project is also expected to feature expansive views and an experiential hospitality component designed to draw residents, workers, visitors and locals into the development.
That combination makes Arro more than a traditional high-rise. It is being positioned as a mixed-use ecosystem, where different CRE uses can support activity throughout the day and into the evening.
Why Arro Matters to Downtown Phoenix
For years, Downtown Phoenix has been working toward greater density, stronger residential demand and a more active mix of uses.
Arro represents another step in that evolution.
The development would add hundreds of residential units while also introducing new office, retail, restaurant and hospitality inventory. That creates the potential for more people living, working, dining and spending time within the same downtown environment.
For Phoenix commercial real estate, that kind of density can be important because successful mixed-use districts increasingly depend on the interaction between uses—not simply the performance of one individual asset class.
The office component is particularly worth watching. Arro is planned to deliver large-floorplate Class A space at a time when Phoenix’s office market continues to favor high-quality, well-located product. The project’s ability to combine office with residential, hospitality and experiential retail could give it a different positioning than a conventional standalone office development.
The Hospitality Component Adds Another Layer
The planned 250-key Optimist hotel gives Arro an additional role within Downtown Phoenix’s hospitality landscape.
The hotel is expected to carry a major global brand, although the specific flag has not yet been announced. Alongside the hotel, Pretty Decent Concepts is developing the signature restaurant and nightlife destination planned for the top two floors of the north tower.
That rooftop concept is especially notable from a placemaking standpoint. Rather than treating food and beverage as simply another ground-floor retail use, the project is incorporating it as a destination with Valley-wide views.
For a downtown mixed-use development, that distinction matters: experiential uses can help create reasons for people to visit even when they have no connection to the residential or office components.
A Long-Range Development Story
Arro is not an overnight project.
The development was originally introduced under the name Astra, with the vision dating back to 2019. Since then, the project has evolved in scale, design and cost before being rebranded as Arro.
The current project is estimated at approximately $675 million, with Aspirant Development advancing the project toward construction. CNR Magazine’s coverage of Arro’s construction plans reports that the development is expected to be permit-ready by the end of 2026, followed by an anticipated construction period of roughly three years.
That timeline puts Arro on a multi-year horizon—but it also makes the project one to watch now.
What CRE Professionals Should Watch
For investors, lenders, brokers, developers and other Phoenix CRE stakeholders, the significance of Arro goes beyond its eventual place on the skyline.
Watch the office component. Approximately 150,000 square feet of new Class A space would add another high-quality option to Downtown Phoenix and provide a useful signal for how tenants respond to new-generation office environments.
Watch the residential mix. Arro combines traditional Class A+ apartments with a 275-unit co-living component, creating two different approaches to urban housing within the same development.
Watch experiential retail and hospitality. The combination of approximately 30,000 square feet of retail and restaurant space, a luxury hotel and a major rooftop dining and nightlife concept reflects the continued importance of experience in urban commercial real estate.
Watch Downtown Phoenix’s broader trajectory. Perhaps most importantly, projects of this scale can influence how surrounding properties are positioned, how businesses evaluate downtown locations and how future development responds to changing demand.
The Bigger Picture
Arro’s future impact will ultimately be measured by more than whether it becomes Arizona’s tallest building.
The bigger question is how effectively the project integrates people, places and uses within Downtown Phoenix.
If completed as currently envisioned, Arro would add a significant amount of new residential, office, hospitality and retail capacity while establishing a new vertical landmark for the city.
For those watching Phoenix CRE, that makes Arro a development worth following—not simply because it will change the skyline, but because it offers a look at where Downtown Phoenix’s next generation of mixed-use development may be headed.
