PICOR Connect | Trends in Commercial Real Estate

Tucson Apartment Market Finished 2015 Strong. What's ahead?

Posted on Tue, Feb 23, 2016

The Tucson Apartment market saw continued growth in all major sectors in the fourth quarter of 2015. The vacancy rate improved 34 basis points (bps) during the quarter to finish the year at 7.82%. This marks a 105 bps improvement from the start of 2015, attributable to the previous year’s limited movement and a slight increase in job gains in the region.  Nine of the fifteen submarkets experienced improvement, with the largest gains seen in the Southwest and Oro Valley regions.  Quarterly absorption saw a slight improvement with 333 units absorbed as new developments began to lease-up stage.

Read More

Topics: Tucson, Economy, Investment property, Market trends, Apartments, Multifamily

Will Modest Growth Remain the Story for the Tucson Retail Market?

Posted on Tue, Feb 16, 2016

Vacancy in the Tucson retail market ticked down, ending 2015 at 6.6%, a familiar and stable range for over two years. Annual net absorption in 2014 at 467,000 square feet (sf) and 2015 at 452,000 sf lagged the previous three years, which averaged 719,000 sf per year. In addition to traditional retailers, medical users from practice groups to the market’s first standalone emergency department have embraced the visibility, traffic counts, parking, and affordability that retail corridors offer today. On the national level, creating an experience for the consumer beyond a simple product purchase differentiates successful omni-channel/ brick and mortar retailers from their online counterparts. The grocery sector remains dynamic, with the possible re-entry of Albertsons at Broadway and Houghton and expansion from Natural Grocers. Walmart’s unexpected announcement of U. S. store closures will not have much impact on a national level and will not affect the Tucson market. Tucson continues to be an expansion market for Walmart and other discount retailers.

Read More

Topics: Tucson, Economy, Investment property, Market trends, Leasing, Retail

Tucson Industrial Market - 2015 Recap & 2016 Preview

Posted on Thu, Feb 04, 2016

With 4,700 jobs gained over the first eleven months of 2015, Tucson's employment picture continued to under-perform relative to the state and nation, primarily due to fiscal drag. Tucson has recovered 74.0% of recessionary jobs lost, while Greater Phoenix has recovered 101.0%. Sector performance varied, with positive gains in professional and business services; leisure and hospitality, education and health care; financial activities; and information were largely offset by reductions in the other sectors, with the largest declines in state and local government.

Read More

Topics: Tucson, Industrial, Economy, Investment property, Absorption, Market trends, Vacancy, Warehouse, Leasing