PICOR Connect | Trends in Commercial Real Estate

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's Best Place to Work 2016!

Posted on Tue, Oct 04, 2016

Earlier this month, our team was honored to win the Copper Cactus award for Best Place to Work (companies 31-75 employees). We couldn't be more thrilled, as this recognition belongs to every member of our company. Our team strives to exceed our clients' expectations, with a tremendous work ethic in a culture of fun. This is our seventh Copper Cactus Award since the program's inception, with past awards in Community Service, Business Growth, as well as an Innovation award finalist.

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Topics: Tucson, Community

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

Tucson Restaurant News: Guest Post

Posted on Thu, Aug 11, 2016

The restaurant industry is a significant contributor to the national economy and its importance has been increasing over decades.  According to the National Restaurant Association (NRA), the restaurant industry contributes 4% of the national Gross Domestic Product.  The NRA also reports that the restaurant industry accounted for 25% of the total food dollar in 1955 and this increased to 47% of the national food dollar by 2016.  Restaurant industry growth in real dollars is charted in the table below.

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Topics: Tucson, Commercial real estate, Investment property, Market trends, Retail

Mid-Year Perspective on Tucson's Industrial Market | TREND Report

Posted on Tue, Jun 14, 2016

We were recently invited to speak at the Southern Arizona CCIM 2016 Commercial Real Estate Forecast. This event focuses on all aspects of Commercial and Multi Family real estate in Tucson, Arizona and brings together market leaders to speak on the various commercial real estate disciplines. Various market specialists share their expertise and perspectives on the general health and advancement, or decline, of the commercial real estate sectors. For 2016, industrial can be referenced as being in a state of advancement, unlike the eight years preceding it.

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Topics: Tucson, Industrial, Sonora Mexico, Land, Commercial real estate, Investment property, Warehouse, Manufacturing

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