As we take some time to reflect and express gratitude this season, Cushman & Wakefield | PICOR would like to extend our appreciation for the collective spirit of generosity that defines this time of year. We are grateful for the dedication of our partners, clients, and employees, as well as the unwavering support of our community. We are excited to share that our 29th Pancake Breakfast Fundraiser[…]
PICOR Connect | Trends in Commercial Real Estate
The Tucson multifamily market continued to display dynamic trends throughout Q3. The vacancy rate notably grew to 7.76%, marking a significant 1.61% YOY increase. Moreover, the Tucson MSA’s inventory increased measurably by 233 units during this period, indicating a growing demand for housing in the region. On the rental front, monthly gross apartment rents in Tucson climbed to $1,167 per unit or[…]
The Tucson retail market in Q3 continued to exhibit signs of stability, with the vacancy rate remaining unchanged at 5.6%. Amid consistent occupancy reflecting steady market conditions, nine out of 13 submarkets experienced positive absorption during the quarter, indicating healthy demand for retail space.
In the third quarter, the Tucson industrial market maintained a consistent demand-supply dynamic, marked by limited inventory. After experiencing vacancy below 4.0% in the second quarter of 2023, the vacancy rate rose to 5.6% due to delivery of new vacant product to the market. Despite this, there was a positive net absorption of 292,707 square feet (sf).
The Tucson office market is gradually rebounding post-pandemic, with the vacancy rate decreasing from 9.4% to 8.9% compared to the previous quarter. However, the presence of 2.8 million square feet (sf) of available inventory remains a concern, primarily due to office users reevaluating their needs considering hybrid and remote work models. Medical users continue to drive the Tucson office[…]
With investment activity down across all commercial property types in 2023, medical office buildings have felt the impact but remain in high demand. This is due to solid fundamentals in rental growth, stable rent rolls, and lower vacancy compared to other commercial property types in the current economic climate.