“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.Read More
PICOR Connect | Trends in Commercial Real Estate
Nogales, Ariz. is witnessing increased demand for international trade warehouse space and property with the upcoming $244 million expansion of the Mariposa Port of Entry. The Nogales Santa Cruz Port Authority works with key stakeholders in the Nogales community, including commercial land developers and Realtors®, to enhance economic development in the Nogales-Santa Cruz County region.
In the realm of supply chain services, as with any growth-oriented product or service, constant innovation is a critical component to differentiate and create distance from the competition.
Geography, cost and a new attitude. Those three ingredients have put Tucson in the national spotlight for companies looking for markets with distribution hubs, a new report shows. Tucson is one of the least expensive cities in which to operate a distribution warehouse and its proximity to key U.S. and international markets makes it attractive to companies looking to expand or relocate, says the report by The Boyd Co. Inc. of Princeton, N.J.
News stories from the region this week highlight positive economic development activity impacting the commercial real estate market in Tucson. Summaries below cover hiring announcements, development and construction progress, and recent awards and rankings that demonstrate Southern Arizona's stature as a Sun Corridor growth market.
Gross revenue for U.S. third-party logistics providers (3PLs) is expected to exceed $140 billion in 2011 -- quite a feat when you consider that in 1976, less than 6,000 trucking companies had operating authority from the Federal Motor Carrier Safety Administration (FMCSA). After deregulation of the transportation industry in the 1980s, competition increased dramatically and traditional trucking companies began expanding their services. Many evolved into what we now know as 3PLs, offering warehousing, cross docking, inventory management, packaging and freight forwarding. The 3PL industry has grown steadily for three decades and, according to a recent report by Grubb & Ellis, 3PL were the most active segment of the warehouse logistics real estate market in the first quarter of 2011. A number of factors are in play and the outlook is good.
With aging U.S. infrastructure and an overburdened interstate system, one Tucson property owner is working on creative solutions to increase cargo business through the Port of Tucson intermodal facility at Century Park Business Center.
If successful, Tucson's Modern Streetcar presents opportunities for transit oriented development with myriad benefits. Early this year the Federal Transit Administration granted final approval of a $63 million dollar grant to help fund the overall $197 million cost of Tucson’s Modern Streetcar project. As of June 6th, planning is nearly complete and the 3.9 mile line is expected to go into service in 2013. The line will run from the Mission Gardens area west of Interstate 10 and Congress St, through the Central Business District, along Fourth Avenue to University Blvd, through the University of Arizona campus, and on to the University Medical Center. The streetcar line will link residential, commercial, employment, governmental, and educational activity centers in order to mitigate parking needs, improve non-vehicular connectivity, generate private development, and support population and employment growth.