PICOR Connect | Trends in Commercial Real Estate

The Mixed Story on the Tucson Apartment Market

Posted on Thu, Feb 26, 2015

Metro Tucson ended November with a total of 372,000 non-farm jobs, gaining 5,200 year-over-year (YOY), an annualized job growth rate of 1.4%. Growth in home prices began to flatten, with a 4.6% gain in median selling price in 2014. HomeGoods, a division of TJM Companies, announced interest in opening a western distribution center in Tucson, an operation employing up to 900 with an estimated economic impact of nearly $900 million. HomeGoods received Pima County approval and awaits a tax incentive decision from the City of Tucson in February.

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Topics: Tucson, Housing, Commercial real estate, Investment property, Absorption, Vacancy, Apartments, Multifamily

Tucson Office Market: 2014 Recap and 2015 Forecast

Posted on Thu, Jan 29, 2015

From an economic standpoint, Metro Tucson ended November with a total of 372,000 non-farm jobs, gaining 5,200 jobs year-over-year (YOY), an annualized job growth rate of 1.4%. Growth in home prices began to flatten, with a 4.6% gain in median selling price in 2014. HomeGoods, a division of TJX Companies, announced interest in opening a western distribution center in Tucson, a proposed 800,000-square-foot (sf) facility with an estimated economic impact of nearly $900 million. HomeGoods received Pima County approval and awaits a tax incentive decision from the City in February. The real estate is being brokered in part by Cushman & Wakefield | PICOR.

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Topics: Tucson, Economy, Commercial real estate, Investment property, Absorption, Market trends, Vacancy, Lease rates, Leasing, Office, Medical office

Tucson's apartment market sees gains in Q3

Posted on Tue, Nov 11, 2014

For the Tucson apartment market, the third quarter of 2014 continued to report historic progress in absorption and vacancy figures.  Tucson's multifamily inventory absorbed 618 units in the third quarter of the year. The vacancy rate dropped 0.8% to a very encouraging 8.2%.  These two indicators continue to improve in the marketplace mainly due to the declining average rent in Tucson. 

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Topics: Tucson, Commercial real estate, Investment property, Absorption, Market trends, Apartments, Multifamily, Vacancy

How's your appetite? Food retailers hungry for Tucson retail sites

Posted on Thu, Nov 06, 2014

With an improving national economic and employment picture slowly lifting all boats, the Arizona and Tucson employment rates followed suit; statewide employment was up 2.1% over a year ago. Residential inventory continued to stabilize and median sale prices gained 6.2% over prior year. Shared Services Center’s expansion announcement netting 200 new jobs made a positive statement about Tucson as a location to service western states.

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Topics: Tucson, Commercial real estate, Retail, Investment property, Absorption, Vacancy

Tucson Office Market future looks bright (Debbie Downer has left the building)

Posted on Tue, Oct 21, 2014

With an improving national economic and employment picture lifting all boats, the unemployment rate for Arizona and the Tucson metro area followed suit. Home sales inventory continued to stabilize and median sale prices gained 6.2% over prior year. Shared Services Center’s expansion announcement netting 200 new jobs made a further positive statement about Tucson as a location to service western states.

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Topics: Tucson, Commercial real estate, Office, Investment property, Leasing, Absorption, Market trends, Vacancy, Lease rates, Medical office

Tucson: A Hotbed for Apartment Investors | Q2 Market Snapshot

Posted on Tue, Aug 26, 2014

The second quarter of 2014 saw historic progress in absorption and vacancy figures. 235 units were absorbed in the second quarter of the year with the largest gain in South Central Tucson. Downtown Tucson had all the buzz, and many prospective residents were looking for properties within this submarket. The overall vacancy rate dropped 0.28% to a very encouraging 9.05% at the year’s midway point. The net rents for the Tucson market continued to stay flat with no gain over the last six months. Tucson sales were averaging $639 per unit and $0.86 per sf (without utilities) in Metropolitan Tucson. The highest average rent was found in the Oro Valley/Catalina submarket at an average of $838 per unit. The lowest average rent of $512 per unit was found in the South Tucson/Airport area.

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Topics: Tucson, Commercial real estate, Investment property, Absorption, Apartments, Multifamily, Vacancy, Housing

Wind in the Retail Sails/Sales: Tucson Retail Market Update

Posted on Tue, Aug 19, 2014

At 2014's midway point, the Tucson retail market continued its positive performance. Read more, as we detail the highlights for the quarter.

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Topics: Tucson, Commercial real estate, Retail, Investment property, Leasing, Absorption, Market trends, Vacancy, Lease rates

Tucson Industrial Market Mid-Year: The Good, the Bad & the Ugly

Posted on Thu, Aug 07, 2014

For the sake of ending on a positive note, let's do the good, the bad, and the ugly in reverse for this mid-year Tucson industrial market overview: 

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Topics: Tucson, Industrial, Investment property, Absorption, Market trends, Vacancy, Lease rates, Warehouse

Market Minute: Briefs on the Tucson Commercial Real Estate Markets

Posted on Thu, Jul 31, 2014

The unemployment rate for the Tucson metro area as of May 31st was 5.8%, 60 basis points (bps) lower than year end and 50 bps below the national rate. Decreased government spending impacted both Tucson’s market momentum and activity. Home prices and inventory flattened in the second quarter, while the inventory of Tucson residential listings increased.

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Topics: Tucson, Commercial real estate, Office, Industrial, Investment property, Leasing, Absorption, Market trends, Economic development, Apartments, Multifamily, Vacancy, Lease rates, Medical office

Office Market Mojo: Tucson's is Ticking Up

Posted on Wed, Jul 16, 2014

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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Topics: Tucson, Commercial real estate, Office, Leasing, Absorption, Market trends, Economic development, Vacancy, Lease rates, Medical office