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Office Market Mojo: Tucson's is Ticking Up

  
  
  
Bright outlook for Tucson office market

If our firm’s revenue and activity are indicative of the market, Tucson office market momentum has clearly increased, with annualized lease and sale transactions up 44.7% over 2013. Our team was busy helping clients position themselves to best avail themselves of opportunities, with regard to pricing and availability whether for lease or investment. With continued tepidness in job growth, creativity and resourcefulness ruled the day.

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Steady as she goes: Tucson's apartment market continues modest improvement

  
  
  
Tucson Apartment Chart

The Tucson apartment market has been remarkably steady for the past few years with occupancy remaining in the 90% to 91% range and rents slowly edging higher. Rental concessions have also continued to improve modestly, helping to boost property operating incomes.

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Velocity up in the Tucson industrial market

  
  
  
Velocity

The national economy picked up in demand following the extreme winter. While statewide job gains are expected to outpace the nation in 2014, post-recession job recovery locally has lagged, leaving job creation the most pressing demand driver. March unemployment in Tucson was 6.6%, which was under both the state’s rate of 7.3% and the U.S. 

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Tucson Industrial Market Snapshot: Thank You, Small Business

  
  
  
Warehouse Doors Tucson Industrial

With Tucson and Arizona post-recession job recovery lagging the nation, the Tucson industrial market sneaked in progress throughout 2013 in bite-sized increments, fueled by the health of startups and other small businesses. Available buildings over 100,000 square feet (sf) were the market’s enduring opportunity, while market drivers included activity in the mining sector and refocus on trade and logistics.

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Tucson Retail Market Snapshot

  
  
  
CW Retail Tag Crop

Despite fewer shopping days in the critical holiday season, retail spending was up 3.5% nationally, aided by deep discounts by retailers. In the Tucson housing market, residential sales volume and median prices ended the year higher (14.0% and 7.1%, respectively), as positive recovery continued.

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Tucson Multifamily: Student Housing & Class A Construction Lead the News

  
  
  
Level at University of Arizona

Operating fundamentals continued to slowly improve in Tucson with modest decreases in vacancy, positive absorption, a small increase in rental rates and some continued decline in rental concessions. Average vacancy dropped from 9.4% to 9.3% and the average rental rate essentially held steady, averaging $635. In a continuation of a four-year trend, higher occupancies and stronger increases in rental rates occurred in submarkets with higher-grade properties. The Northwest, Catalina Foothills, and Northeast submarkets, which have the strongest demographics in the region, had the lowest submarket vacancies in Tucson.

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Tucson Office Market: Downtown and Medical Uses Light the Way

  
  
  
Office facade

Arizona job growth is outpacing the national rate, as the state recovers. Improvement in job gains is dominant in the Phoenix metropolitan area, with only 1,300 net new jobs in the Tucson region since July 2012. The housing recovery statewide has positively impacted construction jobs in both Phoenix and Tucson, but permits remain low, relative to historic norms.

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Tucson retail snapshot: Positive trend continues

  
  
  
Tucson retail market

Arizona job growth has outpaced the nation since hitting bottom in fall 2010, and is making significant progress toward full employment. Much of the growth focused on Phoenix while Tucson’s progress was less robust. Local unemployment rates continued to improve ending May at 6.3%, a full percentage point improvement since January 2013. Retail sales in the metro area increased 2.1% year over year and May home sales rose with median prices up 12.0% and closings up 11.0%, both over May 2012. All of the key economic indicators are pointing in the right direction.

"Building Value through Service"

Mid-Year Tucson Industrial Update: Dare we say positive?

  
  
  
Tucson industrial market

Arizona job growth outpaced the nation since hitting bottom in fall 2010, but is still digging out of the significant hole left by job losses during the downturn. Much of the growth focused on Phoenix while Tucson’s progress was less robust. Local unemployment rates continued to improve ending May at 6.3%, a full percentage-point improvement since January 2013. Retail sales in the metro area increased 2.1% year over year and May home sales rose with median prices up 12.0% and closings up 11.0%, both over May 2012.

"Building Value through Service"

Tucson industrial market: Back-to-back quarters of strong activity

  
  
  
Tucson industrial market statistics

From an economic standpoint, the State of Arizona reported significant job gains for the local market in February, with Tucson’s unemployment rate improving to 6.7% from 7.3% in January. In the past year, 3,500 more jobs were added, largely in the education, leisure/hospitality and construction sectors.

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