PICOR Connect | Trends in Commercial Real Estate

Tucson Office Market: In Flux or Flexing?

Posted on Tue, Aug 24, 2021

In Q2, Tucson’s post-pandemic office market began to re-center itself, as vaccinations became more widespread, and employers planned their return to office strategies. Vacancy rose to 9.5%, with an expectation it will approach 10.0% by year-end before stabilizing. Activity was strongest in the healthcare-related fields, with hospice, home health care, counseling and therapy uses most prevalent.

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Topics: Tucson, Commercial real estate, Investment property, Absorption, Market trends, Vacancy, Lease rates, Leasing, Office, Medical office

Tucson Industrial Market Sees Soaring Demand

Posted on Fri, Aug 20, 2021

In Q2 2021, Tucson industrial and flex space of all types remained the darling during tumultuous pandemic times and for the foreseeable future. E-commerce and expanded consumer buying power drove logistics and fulfillment demand and a 5.5% vacancy rate in the market.

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Topics: Tucson, Industrial, E-Commerce, Commercial real estate, Absorption, Warehouse, Leasing, Logistics, Development

Tucson Multifamily Market Sizzles Mid-Year

Posted on Tue, Aug 17, 2021

For investors looking for investments $20 million and under, Tucson ranked number 4 on the list of small/middle sized markets. A larger driver of the demand for multifamily in Tucson is the attractive year-over-year (YOY) average rent growth of 9.1%. The shortage of affordable and traditional housing in Tucson also fuels apartment rental demand. With construction costs tripling on certain building materials, housing development has slowed down drastically over the past 12 months. In a market with the typical average residential for sale inventory at about 6,000 listings, fewer than 1,000 homes are for sale. This shortage has led to increased demand for multifamily living, which in turn has driven down Tucson’s vacancy rate.

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Topics: Tucson, Housing, Commercial real estate, Absorption, Market trends, Vacancy, Leasing, Apartments, Multifamily

An Active Tucson Retail Market at Mid-Year

Posted on Thu, Aug 12, 2021

Tucson’s Q2 retail vacancy held steady at 6.2% amid a resurgence in demand for consumer goods, entertainment, and travel as vaccine availability and guidance opened the door for spending like it’s 2019. Summer midweek waitlists at restaurants have become a thing. With continued strength in class A space, class B and C properties saw improved absorption and declining vacancies. Among the sizzling regions in the retail market include the Central East submarket (Campbell Ave corridor, and the University area), Foothills submarket (Oracle Rd and Ina Rd), and a return to the Downtown submarket. Medical and service-based users have increased appetites for neighborhood-based locations, with competition between multiple clinic brands entering the Tucson market.

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Topics: Tucson, Commercial real estate, Market trends, Vacancy, Leasing, Retail