PICOR Connect | Trends in Commercial Real Estate

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

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

Tucson Apartment Market Gains Ground Q3

Posted on Tue, Dec 15, 2015

Market Overview

In a show of local market strength, Tucson’s multifamily sector reported positive growth in all key statistical categories in the third quarter of 2015. Absorption increased by 623 units during this time period as students and winter visitors returned to the region. For the trailing twelve months, Metropolitan Tucson experienced a 740-unit increase in occupancy. The net rents for the Tucson market increased $9 per unit to an average rent of $651 per unit and $0.89 per sf (without utilities) in Metropolitan Tucson. Of note, this represented the largest rental gain in a single quarter since 2006. Gross rents have increased $15 per unit (2.36%) over the last year with the largest gross rental gain occurring in the Tucson Mountain Foothills ($44 per unit).  The greatest one-year decline was from the South Central Tucson market ($21 per unit). The leading indicators of absorption and net rents typically signal a strengthening market. The vacancy rate for conventionally-operated complexes improved 0.72% to an average of an 8.17% vacancy. Seasonal improvement is predicted most third quarters but the meaningful gains in each of these sectors is a true step in the right direction.  The sentiment among management companies as a whole is more positive on the growth and immediate future of the multi-family market.  As Tucson continues to add jobs in the marketplace, we will continue to see positive results in all the main sectors.

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

Tucson Retail Market: Positive Momentum Continues

Posted on Wed, Dec 09, 2015

Market Overview

Tucson retail, like other property sectors, enjoyed improvement as the marketwide vacancy dropped to 6.8% on positive absorption of 452,409 square feet (sf). The majority of the absorption was a result of the opening of the 360,000-sf Tucson Premium Outlets in Marana and the Cushman & Wakefield | PICOR Comcast office lease at the Tucson Galleria taking 211,000 sf out of the retail inventory.

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

tucson office market: Q3 retrospective

Posted on Wed, Dec 02, 2015

In an environment marked by stability, 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, Commercial real estate, Investment property, Absorption, Market trends, Vacancy, Office, Medical office

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

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

Tucson Office Market Snapshot - Q2 2015

Posted on Mon, Jul 27, 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.

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