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PICOR Connect | Trends in Commercial Real Estate

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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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Tucson Apartment Market Snapshot

  
  
  
The Herbert Apartments

Read the latest recap of the Tucson multifamily market from our team, as well as commentary from our friends at Reis, Inc. on the data set they track for the Tucson apartment market. A link to our full report can be found at the end of the article.

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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's Multifamily Renaissance | TREND Report

  
  
  
Tucson Apartment Market

The Tucson apartment market is experiencing a renaissance with active and innovative development in the sector after a decade of underinvestment. During the housing boom of 2000 to 2008 the economics of multifamily development allowed few new developments in Tucson. Due to low apartment rental rates, high cost of land and building materials, very few multifamily developments penciled out in Tucson during the past decade. Lower land and building costs, a weak home market, higher demand for quality multifamily housing and some key rezoning actions have brought on a flurry of new construction.

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Property Tax: Managing real estate ownership expenses in Arizona

  
  
  
Jodi Bain Sage Tax

Property taxes are one of the main expenses of real estate ownership in Arizona. In today’s business climate, taxes are under the microscope more than ever as property owners and managers seek ways to reduce expenses. We are fortunate that Arizona has a tax valuation appeal system. The system allows property owners or their agents to file an appeal petition for review with the purpose of lowering property tax. 

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"State of the Tucson Market" Forecast Webinar Airs January 16th

  
  
  
CoStar Register Now

For the first time, C&W | PICOR Commercial Real Estate has partnered with The CoStar Group to deliver a "State of the Tucson Market" webinar, which will include perspectives from leaders of each commercial division and include the Sonora, Mexico border region. 

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Mid-Year Multifamily Outlook

  
  
  
Van Buren Apartments Tucson

Operating fundamentals took their usual second quarter dip with students, seasonal visitors and seasonal employees departing for the summer. Market occupancy dropped 285 units which is on the light side of typical for Tucson. During the past 12 months, total occupied units continued climbing upward, increasing 995 units over Q2 2011 and gaining 2,245 units since Q2 2010. 

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Tucson deserves a great downtown: Tucson Metro Chamber guest post

  
  
  
Downtown Tucson historic train depot

Let’s make 2012 the breakthrough year for the commencement of a robust redevelopment of Tucson’s downtown. Cities nationwide have found ways to build attractive and functional urban cores. Tucson can, too. There are several obvious reasons why a vibrant downtown is critical to our city.

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Arizona's slow housing recovery and the multifamily market impact

  
  
  
Allan Mendelsberg Tucson multifamily broker

Once the poster child for national population growth and housing starts, Arizona, like other states historically reliant on construction, took a beating in the downturn, and the well-publicized forecast points to a long road to recovery.

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Tucson Commercial Real Estate Financing Trends: Guest Post

  
  
  
Tucson commercial development

As everyone knows, the past few years have been a tumultuous time for the commercial real estate market.  On the financing side, banks have spent a lot of time managing their loan portfolios of underperforming and nonperforming loans.  Most banks have required more frequent reporting of property operations, and if there has been any deterioration of performance or loan maturity, a new appraisal has been ordered.  Based on the value conclusions from the new appraisals, many times borrowers have been asked to make principal remargin payments to bring LTV’s (loan-to-value ratio), debt coverage ratios and loan yields back in line with bank regulator requirements.  In most cases, borrowers and lenders have been able to come to an agreement where the bank received additional cash and the borrower received additional time.

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