While we maintain numerous relationships with owners of investment property that are segmented by service, the case for employing a full-service commercial real estate team was well stated in this recent post on Cushman & Wakefield's blog. Reposted here with their permission:
Read MoreTopics: Commercial real estate, Investment property, Leasing, Development, Property management
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.
Read MoreTopics: Tucson, Commercial real estate, Investment property, Vacancy, Apartments, Multifamily
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.
Read MoreTopics: Tucson, Commercial real estate, Investment property, Absorption, Market trends, Vacancy, Retail
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.
Read MoreTopics: Tucson, Commercial real estate, Investment property, Absorption, Market trends, Vacancy, Office, Medical office
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