DOWNTOWN: 12 Economic Drivers

BizTUCSONSeptember 30, 2026

2 minutes read

By Jay Gonzales

Make no mistake – Tucson is a better place because downtown has become a massive economic driver for the community. But the truth is, it needed to be.

“In most cities, downtowns are the primary economic engine, repository of knowledge and culture and generator of new ideas, new technology and new ventures. They are the very heart of the city,” said the late Alexander Garvin, an influential urban planner in New York City.

In this issue, BizTucson delves into the economic drivers for Downtown Tucson. They range from big businesses like hotels, residential developments and corporate headquarters, to the many entertainment offerings and events, and to the small businesses − local restaurants, bars and coffee shops − that have transformed the landscape and turned downtown into a bustling hub of activity.

As Tucson’s downtown has been revitalized over the last 15 years, it’s easy to see the financial engine it has become for the community.

“Downtown Tucson is incredibly vibrant because you can have a completely different experience every time you visit,” said Crystal Moore, president and CEO of Downtown Tucson Partnership, the nonprofit corporation tasked with providing municipal services for the downtown Business Improvement District. “You can enjoy an incredible meal, see a concert, Broadway production, symphony or sporting event, have a cocktail afterward and stay overnight, all within a walkable urban core.”

In addition to the fun stuff, major developers have built massive residential projects downtown. Eight hotels have gone up after decades when not even one was built. Even the long-vacant Hotel Arizona adjacent to the Tucson Convention Center will soon reopen as a Hyatt Regency. Nothing says progress like a building vacant for 14 years being revitalized to add to the portfolio of downtown hospitality.

Rio Nuevo alone has helped generate over $1 billion in investment from the tax dollars it invests in projects and businesses locating there and from the developers and investors who have put their own money into downtown.

More importantly, a recent tragedy notwithstanding, Downtown Tucson has become a place where you can walk, enjoy an outdoor cocktail or meal, attend a performance, visit a friend, and just spend money to help the economy.

“We’ve spent a lot of money making downtown safe,” said Fletcher McCusker, chair of the Rio Nuevo board.

“What makes downtown special is that it still feels distinctly Tucson,” Moore said. “We have longtime local institutions alongside new restaurants and concepts, historic venues alongside new investment, and a growing residential community that brings energy downtown every day, not just during events.

“And we continue to see significant investment in downtown, from new restaurants and entertainment concepts to major hospitality projects. That tells me there is real confidence in downtown’s future.”