PICOR Connect | Trends in Commercial Real Estate

Small but Mighty Ruled in the Tucson Industrial Market Q1

Posted on Tue, Apr 26, 2016

The Tucson industrial market reported the strongest small tenant activity in recent years, with small startups and smaller company expansions comprising the bulk of first quarter activity. A heart-beat was palpable for larger requirements in the 10,000 to 50,000 square foot (sf) range, though few leases were executed by quarter’s end. Autobahn Indoor Speedway signed the largest lease first quarter, following in the entertainment sector that has enjoyed growth in recent quarters. Slight negative absorption of 28,363 sf in the first quarter ticked overall market vacancy up to 9.6%, with direct vacancy (which excludes available sublease space) ending at 8.7%. Overall average asking rates remained steady, though rates were up about 5.0% year-over-year. Slight increases in effective rents were recorded in the Northwest submarket due to tighter supply.

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Topics: Tucson, Industrial, Commercial real estate, Investment property, Market trends, Warehouse, Leasing

The Big Deals: Top Tucson Office Transactions of 2015

Posted on Tue, Mar 08, 2016

As winner of the Southern Arizona CCIM 25th anniversary Commercial Real Estate Forecast, Rick Kleiner, top-producing C&W | PICOR broker and principal, addressed the audience. What follows is the transcript of his remarks covering the top three office transactions of the year, as well as select slides.

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Topics: Tucson, Commercial real estate, Investment property, Market trends, Leasing, Office

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.

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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.

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

Tucson Office Market - 2015 Recap & 2016 Preview

Posted on Fri, Jan 22, 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.

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Topics: Tucson, Economy, Investment property, Absorption, Market trends, Vacancy, Leasing, Office, Medical office

GUEST POST: THE BENEFITS OF A FULL-SERVICE CRE TEAM

Posted on Tue, Dec 22, 2015

While we maintain numerous relationships with owners of investment property that are segmented by service, the case for employing a full-service commercial real estate team was well stated in this recent post on Cushman & Wakefield's blog. Reposted here with their permission:

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Topics: Commercial real estate, Investment property, Leasing, Development, Property management

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

The Comcast Deal - A "Broken Promise:" TREND Report

Posted on Thu, Oct 15, 2015

Comcast Cable recently signed a lease for the former American Home Furnishings building near the Tucson Mall for its new IT, call center and social media operations. The company announced its plans to add 1,125 jobs in May. With an annual payroll of $35 million, the facility will be staffed by IT and customer-support workers. The center will house Spanish-speaking employees specializing in social media so customers can connect with Comcast via Twitter, Facebook or other outlets.  One of the major decision factors for selection of the Tucson Galleria site was based upon the convenient commuting options to the building. 

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Topics: Tucson, Commercial real estate, Economic development, Leasing, Office

Food, Beverage & Grocery Activity Lead the Way for Tucson Retail Mid-Year

Posted on Wed, Aug 19, 2015

Home prices increased in June, thanks to inventory at a 21-month low coupled with steady consumer demand and favorable interest rates. U. S. consumer confidence was up significantly, and personal income statewide slightly outpaced the rate of gain nationally. Moody’s forecasts Tucson’s year-end unemployment to be under 5.7%, with improvement continuing through 2016 and 2017.

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

A Midsummer Night's Dream for the Tucson Industrial Market

Posted on Tue, Aug 04, 2015

Pinch us... Tucson's industrial vacancy is nearing single digits and ended the year's midway point 1.6 percentage points healthier than a year earlier. Read more in our Q2 2015 Tucson Industrial MarketBeat.

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