PICOR Connect | Trends in Commercial Real Estate

Tucson Industrial Market Posts Stellar Absorption Q3

Posted on Tue, Oct 25, 2016

Tucson’s industrial vacancy continued its positive trajectory, improving by 50 basis points over Q2 2016 to end at 8.1%, the lowest level recorded since Q4 2008. With the completion of HomeGoods’ 858,288-square-foot (SF) distribution center, total net absorption to date in 2016 exceeded 1.2 million square feet (MSF), marking the first year over one MSF since 2006. The pendulum has moved to center in a balanced landlord/tenant market. Concessions are minimal and pressure is occurring on lease rates in some submarkets, particularly in the northwest, where rents have increased 10.0% to 15.0% over the last 18 months. The strongest part of the market is in the 5,000- to 10,000-SF range, with the preponderance of activity in that size level. Spaces over 50,000 SF still suffer from limited demand.

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Topics: Tucson, Industrial, Economy, Commercial real estate, Investment property, Leasing

Tucson Office Market Posts Highest Occupancy in 7 years

Posted on Tue, Oct 18, 2016

As a result of steady, organic recovery and job growth, surplus and sublease office space in the Tucson market has largely shaken out. Overall market vacancy hovered around 12.0% for six solid years. At its current 11.5%, Tucson office vacancy is at the lowest point since Q4 2009. The data reveals a strong differential between older and newer buildings, with those built prior to the new millennium sitting at 13.9% vacant, and those built since 2000 enjoying a much healthier 6.0% vacancy. Absorption for the year is on pace to exceed the prior two years, standing at 289,278 square feet (SF) through the end of Q3.

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Topics: Tucson, Economy, Commercial real estate, Investment property, Leasing, Office, Medical office

Tucson Office Space: Mid-Year Momentum

Posted on Thu, Sep 08, 2016

Mid-year Tucson office market metrics were on a positive path. Positive year-to-date absorption of 205,301 square feet (SF) brought overall market vacancy down to 11.8%, nearly half a point below the historical average which skewed up in the recession. Existing and new call center requirements were present in the Tucson office market, as well as interest for medical, behavioral health and ancillary health care uses. 

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Topics: Tucson, Economy, Commercial real estate, Investment property, Leasing, Office, Medical office

Mid-Year Tucson Industrial Update

Posted on Wed, Aug 24, 2016

Positive momentum accelerated in the Tucson industrial market during the second quarter, with vacancy improving to 8.6% on positive net absorption of 252,815 square feet (SF). After peaking at 13.4% 3Q 2011, market-wide vacancy improved to its lowest post-recession level, not reporting a sub-9.0% rate since 2008. Many projects reached full occupancy, with multi-tenant inventory inconsistently available. Of note given its nearly two million SF footprint, the UA Tech Park saw activity bringing its vacancy down to 2.0%.

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

4 Location Factors to Consider: Advice for Small Business - Chamber Edge

Posted on Thu, Aug 18, 2016

Rent or mortgage payments are likely among the top expense line items in operating your business, right up there with staffing costs. Not only is the direct cost relevant, but also your choice of location and space layout has the potential to impact the productivity of your team, as well as the perception of your brand by customers and clients. With that in mind, let’s explore some key considerations that come into play when choosing a business location.

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Topics: Tucson, Industrial, Commercial real estate, Investment property, Leasing, Logistics, Office, Retail, Medical office

Mid Year Tucson Multifamily Update

Posted on Tue, Aug 16, 2016

Tucson’s multifamily market experienced minimal change from the previous quarter. The vacancy rate for stabilized units in Tucson increased 2 basis points from the previous quarter to a rate of 6.83%. This figure is very encouraging, given the seasonal nature of the Tucson apartment rental market. Many residents leave for the summer, escaping extreme heat, along with many students returning home. This is the lowest second quarter vacancy rate reported since 2006. Absorption decreased 29 units over the second quarter. 

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

6 Tactics to Own Your CRE Market: APTO Guest Post

Posted on Thu, May 26, 2016

As you know all too well, success in commercial real estate doesn’t come easy. Triumphing in this business requires drive, focus, and a lot of hard work. It also demands a systematic approach that helps you direct your limited time and resources to activities that will bolster your client relationships and truly drive business. Identifying these and prioritizing them over everything else will help you work smarter and achieve success more quickly.

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Topics: Commercial real estate, Investment property, Leasing, Marketing

Restaurants & Medical Uses lead the Tucson Retail Charge Q1

Posted on Tue, May 03, 2016

Vacancy in the Tucson retail market remained at 6.6% in the first quarter, in line with the stability reported over a two-year span. Comparing year-over-year Q1 net absorption, the delta represented 139.0% more space absorbed in Q1 2016 than was lost in Q1 2015. 

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

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