PICOR Connect | Trends in Commercial Real Estate

Tucson Retail Market Robust

Posted on Wed, Nov 15, 2017

Tucson’s retail market continued its robust growth with over 262,000 square feet (sf) of positive net absorption for this quarter, which exceeded the first and second quarter’s combined absorption of 256,205 sf.  Pent-up demand in the market spurred an increase in retail space under construction from 123,402 sf in Q2 to 149,218 sf this quarter. Vacancy ticked-down slightly from 6.4% to 6.2%.

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Topics: Economy, Commercial real estate, Investment property, Leasing, Retail

Tucson Office Vacancy Hits 7-Year Low

Posted on Wed, May 17, 2017

Year over year improvement in office market metrics continues, with a second consecutive quarter of overall market vacancy hovering at a seven-year low. Positive absorption of 31,000 square feet (SF) contributed to a 10.6% vacancy. Increased hiring by employers in engineering and financial services is expected to bring meaningful positive momentum for professional office absorption and eventual upward pressure on lease rates.

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Topics: Economy, Commercial real estate, Investment property, Market trends, Office, Medical office

Retail on a Roll: Tucson Market Beats On

Posted on Thu, May 11, 2017

As predicted, Tucson’s retail market saw a significant increase of 235,808 square feet (SF) positive net absorption. This improvement is almost six times more than the 40,993 SF absorbed in Q4 2016 and accompanied delivery of nine new buildings totaling 235,958 SF. In the past four quarters, a total of 621,286 SF of new retail space has been delivered, consistent with the observed increase in retail space demand and activity predicted in our most recent quarterly report.

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Topics: Economy, Commercial real estate, Investment property, Market trends, Retail

Tucson Apartment Market Sees Continued Traction

Posted on Tue, May 09, 2017

In Tucson's apartment market, the vacancy rate for conventionally-operated, stabilized units decreased by 0.35% from the previous quarter, while improving 0.28% from one year ago to 6.52%. Eight of Tucson’s 15 submarkets experienced occupancy gains, with the greatest improvements occurring in Tucson Mountain Foothills (-2.12%) and South Tucson/Airport (-2.09%).

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Topics: Economy, Commercial real estate, Investment property, Leasing, Apartments, Multifamily

INSIDE BASEBALL ON D. C.: TUCSON METRO CHAMBER GUEST POST

Posted on Wed, Apr 05, 2017

Believe it or not, something good may be happening in Washington, D.C. Last week 12 local business executives, Tucson Metro Chamber Vice President of Government Affairs Robert Medler and I visited Arizona's senators and representatives to advocate for our local community. 

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Topics: Economy, Economic development, Community, Investment property, Transportation, Construction

Positive Outlook for Tucson Apartment Market in 2017

Posted on Tue, Feb 21, 2017

 

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Topics: Tucson, Economy, Commercial real estate, Vacancy, Leasing, Apartments, Multifamily

Tucson Industrial Market Sees a Surge

Posted on Wed, Feb 15, 2017

With accelerating improvement in vacancy from 9.2% to 7.8% year-over-year, Tucson’s industrial market reported the strongest annual gain since 2006 and the lowest vacancy mark since Q3 2008. With occupancy above 92% and no speculative space under construction, the market will experience upward movement in rents. Rent pressure has already occurred for spaces 5,000 square feet (SF) and under. Net absorption for 2016 nearly doubled that recorded in 2015 at nearly 1.5 million square feet (MSF). Absorption over the past twelve months exceeded all years since 2006’s high of 1.9 MSF.

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Topics: Tucson, Industrial, Economy, Commercial real estate, Economic development, Vacancy, Warehouse, Leasing, Logistics, Manufacturing

Tucson Retail Market Expects a Strong First Quarter

Posted on Wed, Feb 08, 2017

Tucson’s retail market ended 2016 with a 6.4% vacancy, the same as year-end 2015, supported by a healthy market with positive growth in retail sales. With the exception of 2013, positive net absorption of 386,786 square feet (SF) for the year exceeded the total for each year since 2007. Gross absorption was also at a three-year high.

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Topics: Tucson, Economy, Commercial real estate, Vacancy, Lease rates, Leasing, Retail

Project Prosperity – Business & Government Working Together to Create Jobs: Guest Post

Posted on Wed, Jan 25, 2017

In a 2014 Tucson Metro Chamber survey of local business executives called the Business Expansion and Retention (BEAR) Report, the Chamber learned that the interface between the City of Tucson and the private sector needed some refinement so it could operate more smoothly and help more job creators open their doors. 

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Topics: Tucson, Economy, Economic development, Community, Investment property

Still Rolling: Tucson Metro Chamber Guest Post

Posted on Thu, Nov 17, 2016

There is a powerful chapter in the bestselling book Good to Great that describes an amazing phenomenon called the flywheel effect.  In the context of the book, the flywheel effect is the relentless and steady achievement of small things that lead to long term achievement of great things.

When you were a kid you might have played with a real flywheel called a gyroscope.  It’s a heavy wheel connected to an axis (axel) and spun like toy top.  Once spinning the gyroscope kept spinning until friction ultimately reduced its RPMs to a point where it lost momentum, began to wobble and ultimately fell over at a dead stop.

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Topics: Tucson, Economy, Economic development, Community