PICOR Connect | Trends in Commercial Real Estate

Tucson Industrial Insights at Midyear

Posted on Mon, Jul 15, 2019

The Tucson industrial market remained strong at midyear, as evidenced by our primary metric: Vacancy rate. Once again, vacancy has ticked-down, this time to 5.1%. Echoing the comments last quarter, Tucson is experiencing a “plateau effect” in the industrial sector in that the dynamic run-up in absorption slowed as the market leveled off at a highly-occupied equilibrium. 

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Topics: Tucson, Industrial, Economy, Commercial real estate, Absorption, Market trends, Vacancy, Lease rates, Warehouse, Leasing, Manufacturing

Tucson Industrial Market Review & Outlook

Posted on Tue, Feb 12, 2019

Positive momentum continued its five-year trend in 2018 in the Tucson industrial market, with vacancy improving to 5.7%, cut in half from its highest point in recent years. At year end, vacancy was lowest in the city center at 1.5% and highest in the Southwest/Airport area at 12.8%. Net absorption was 50.4% stronger than in 2017, and thanks to Amazon’s two projects, space under construction has quadrupled year over year. Significantly, Amazon is entering the market with an 850,000 square foot (sf) distribution center under construction in the southeast sector and a new 50,000 sf service center in the southwest.

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Topics: Tucson, Industrial, Economy, Commercial real estate, Economic development, Market trends, Vacancy, Lease rates, Logistics, Manufacturing

Mid-Year Tucson Office Market Review

Posted on Thu, Jul 26, 2018

Improvement in the Tucson office market's performance continued into Q2 2018. Positive year-to-date absorption of 146,400 square feet (sf) improved the overall market vacancy a full 50 basis points to 8.4% from last quarter’s 8.9%. Vacancy reached its lowest mark since Q3 2008.

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Topics: Tucson, Economy, Commercial real estate, Absorption, Lease rates, Leasing, Office, Medical office

Let the Good Times Roll! Tucson Industrial in 2018, TREND Report

Posted on Wed, Jun 13, 2018

“Wow!  What a great time to be in Industrial real estate!” These are sentiments not heard in almost a decade.  During the depths of the doldrums, the Tucson commercial real estate market was marked by Foreclosures and REO sales, “blend and extend” lease negotiations, downsizing (or “rightsizing” as it was more positively termed) and a general sense of survival.

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Topics: Economy, Commercial real estate, Economic development, Investment property, Market trends, Lease rates, Warehouse, Transportation, Logistics, Manufacturing

Tucson Office Properties Test Rent Increase Waters

Posted on Thu, May 17, 2018

The overall performance of Tucson’s professional office and medical market remained solid through Q1 2018, with a slight shift in overall vacancy to 8.9%. Market fundamentals were significantly improved year-over-year, as demonstrated by the vacancy rate improving from 10.6% in Q1 2017.

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Topics: Tucson, Commercial real estate, Absorption, Lease rates, Leasing, Office

Live-Work-Play Environments Talk of The Tucson Retail Scene

Posted on Mon, May 14, 2018

Tucson retail vacancy improved dramatically in the first quarter of 2018, dropping from 6.0% to 5.6%. This may have led to an increase in average asking lease rates compared to last quarter. Rates averaged $15.05 per square foot (psf) versus $14.87 psf at year end 2017.

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

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

Aerobic Activity for the Tucson Office Market in 2016

Posted on Fri, Jan 27, 2017

You know that feeling when exercise elevates your heart rate? Well Tucson is finally feeling it. Over the course of 2016, the Tucson office market moved from having a pulse to having more fun. In 2016, the market posted its strongest post-recession occupancy gains, ending with available vacancy of 10.5%, a level not achieved in seven years.

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Topics: Tucson, Investment property, Lease rates, Leasing, Office

Tucson Office Market Improves in Q1

Posted on Wed, Apr 20, 2016

Preliminary BLS data reported that Metro Tucson added 12,999 jobs year-over-year through February 2016, with total employment of 455,754 and an unemployment rate of 4.8%. These results demonstrate significant positive progress for the Tucson labor market. If preliminary figures hold, this level of employment would represent a record and the lowest rate of unemployment since April 2008.

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Topics: Tucson, Commercial real estate, Market trends, Vacancy, Lease rates, Office, Medical office

Tucson Industrial Market Breaks Through an Occupancy Milestone

Posted on Thu, Oct 29, 2015

While not enjoying job recovery on pace with the national average, metro Tucson added 3,300 jobs year-over-year through August. Educational/Health Services and Professional/ Business Services accounted for 78.8% of the job growth, with unemployment improving significantly to 5.3% by September. 

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