PICOR Connect | Trends in Commercial Real Estate

Job Growth Spells Good News for Tucson Apartment Market

Posted on Tue, May 10, 2016

No better news could have been reported for the Tucson apartment market than job growth, which translated into the strongest improvement in fundamentals in years.  The vacancy rate for stabilized units in Tucson dropped 100 basis points (bp) from the previous quarter to 6.8%.  This is the lowest first quarter rate since 2007. North Tucson, comprising Northeast Tucson (3.8%) and Oro Valley/Catalina (4.7%) reported the lowest vacancy rates. The University area experienced a 520 bps increase in vacancy, ending the quarter at 11.9%. One area of concern in this submarket is the potential of overbuilding in the student housing sector.  In addition, older units, especially those in outlying areas, are losing ground in the form of lease-up and rents to newer units.

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Topics: Tucson, Commercial real estate, Investment property, Apartments, Multifamily

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

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

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

Saluting C&W | PICOR's Top Performers

Posted on Tue, Mar 01, 2016

Cushman & Wakefield | PICOR salutes its 2015 outstanding achievers who were honored at the company’s annual awards luncheon held at the Tucson Country Club on January 21, 2016.

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Topics: Tucson, Commercial real estate, Leadership

Tucson Apartment Market Finished 2015 Strong. What's ahead?

Posted on Tue, Feb 23, 2016

The Tucson Apartment market saw continued growth in all major sectors in the fourth quarter of 2015. The vacancy rate improved 34 basis points (bps) during the quarter to finish the year at 7.82%. This marks a 105 bps improvement from the start of 2015, attributable to the previous year’s limited movement and a slight increase in job gains in the region.  Nine of the fifteen submarkets experienced improvement, with the largest gains seen in the Southwest and Oro Valley regions.  Quarterly absorption saw a slight improvement with 333 units absorbed as new developments began to lease-up stage.

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Topics: Tucson, Economy, Investment property, Market trends, Apartments, Multifamily

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