Whether you are a sole proprietor, manage a branch location, or are a major local employer, many factors impact your decision to choose a particular site to locate your business. While many might believe lease rate is a major driver, a host of other considerations drive site selection due to their broader impact on business success for manufacturers and distributors alike.
PICOR Connect | Trends in Commercial Real Estate
For 32 years, the Palo Verde Kiwanis Club sponsored a fall event raising in excess of $300,000 for Tucson charities. In 1994, when the club ceased to operate, PICOR formed a foundation to enable this endeavor to continue for years to come. The 2011 event will be held October 9th in Tucson's Reid Park at Ramada #1 from 8:00 am to 1:00 pm with performances by the Tucson Girls Chorus Ladybugs and youth Mariachi performers. Three bucks buys a full breakfast with all-you-can-eat pancakes, plus sausage and milk, with coffee donated and served by Starbucks. Of course, we're happy to take additional donations for the kids in any amount.
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.
Retail sales and leasing in both the national and Tucson retail market hit a soft patch in the second quarter as QE2 stimulus money worked it way out of the economy. This news just in from ICSC is very encouraging as we experience debt ceiling and other economic turmoil in the national and international marketplace.
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.
The Tucson industrial market showed positive absorption of 139,147 square feet (SF) at the mid-year point in 2011. In this article, we highlight the results of the study, and continue with the mid-year Tucson Industrial MarketBeat commentary that was published in July.
Properties continue to operate in “survival mode” in 2011. Leasing activity has been up on smaller spaces in 2011, however, owners continue to try to conserve cash to cover their debt service and operating expenses. For property management, this means continuing to run the properties as tightly as possible on the operating expense side. To preserve and create value, we continually look for ways to reduce property operating expenses without sacrificing the level of services the existing tenants expect.