It's hard to name a costlier problem for Tucson property owners than copper theft and the destruction of property to obtain copper and other metals for scrap value. A dedicated coalition has come together to find solutions and take action on the issue of metal theft in the region.
PICOR Connect | Trends in Commercial Real Estate
During my Q1 2012 Industrial Market update presentation for the Pima County Real Estate Research Council, I noted the schizophrenic market we seemed to be in at the time; a market which seemed to experience large swaths of space coming available and being absorbed, with the end result being no noticeable net gain or loss. This comment is also true today. For example, we watched a 100,000 sf industrial building on Belvedere get absorbed in a sale transaction which included a business expansion, while several miles away the American Airlines call center was coming available. We saw a 110,000 sf building near the airport come available as the occupant moved location and consolidated, yet we saw that building sell to a user who is planning to expand its operation, which transaction results in a reported absorption of that entire building. More recently, we’ve seen SOLON return a large chunk of its space to the market…yet the same space was put back into service by SOLON for the development of a new product line before it could be leased to a third party.
Arizona’s historic reliance on home-building and construction jobs make economic recovery a slower proposition. Conventional wisdom holds that we will not return to those heady days, and the job base must diversify. Why care about Arizona housing if you live and work elsewhere? As global commerce and finance are increasingly interrelated and interdependent, we can't ignore the fact that domestic issues have impact beyond artificial borders. When those regions hit most hard by the housing bubble recovery, the entire country will benefit.
In a September 12, 2011 special report entitled "The Road Ahead for CRE and the US Banking Sector," Deutsche Bank researchers summarize the size and scope of commercial real estate's finance picture with insights for CMBS investors and others in the industry.
Restoring the damage from metal theft is an expensive proposition for property owners and insurers alike. The cost is often a multiple of the price to replace stolen copper wire or metal, because other building and electrical system components are often damaged when the metal is hastily stripped by thieves. Unoccupied properties are prime targets, and with higher vacancy in the market, property owners must be vigilant to protect their equipment.
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.
The Tucson Apartment Investment market is beginning to wake up. Lender owned properties (REO properties), short sales, and sales through receivership are hitting the Tucson market in addition to a few non-distressed properties. PICOR is currently marketing two short sale properties, two REO properties, a sale through receivership, as well as two non-distressed investor owned properties. Additionally there are properties being offered by FNMA, CMBS special servicers, regional banks, and other lender agents who have taken control of properties to protect their position.