PICOR Connect | Trends in Commercial Real Estate
Cushman & Wakefield | PICOR recently facilitated two noteworthy industrial property transactions in the northwest region of Tucson.
AZ Daily Star Guest Post by Gabriela Rico
Older office buildings across Tucson could soon start disappearing as vacancy rates remain high and owners struggle to find new tenants. The exodus from traditional offices that began with the pandemic is ongoing and many employers have either embraced hybrid work schedules or turned out the lights for good.
As the Tucson office market continues to recover from the pandemic, owners are finding innovative ways to repurpose excess space. With widespread adoption of remote work and a tight labor market, many large office properties stand vacant. According to the Arizona Daily Star, users are converting these spaces to grow houses, pickleball courts, storage facilities, and industrial space.
Tucson’s average multifamily vacancy rate increased 0.60% to 8.09% in Q2 2023, representing a 26.81% increase YOY. The Tucson market’s leasing activity slowed as the new year turned, but toward the end of the first quarter regained velocity. The average gross apartment rent without utilities increased $7 (0.61%) from Q4 2022 to $1,164 per unit/$1.53 per square foot (sf). Of completed transactions[…]
The Tucson retail commercial real estate market in Q2 showed steady signs of improvement, with continued absorption of 270,000 square feet (sf) over the past 12 months causing a decrease in the overall vacancy rate from 6.2% one year ago to the current 5.6%. This positive trend surpasses the previous 5-year annual average of 230,000 sf of positive absorption, indicating progress. However, local[…]
The Tucson office market is steadily recovering from the pandemic, with tenants adapting to changing dynamics such as hybrid scheduling and condensed workforces. The Tucson office market shows small improvements from the previous quarter, with the vacancy rate dropping to 9.4%, however, the current 2.7 million square feet (sf) on the market still warrants attention. The market conditions offer[…]
During the second quarter of 2023, the Tucson industrial market remained healthy and resilient and was not impacted by economic downturns as severely as other markets. The vacancy rate experienced a slight increase, reaching 2.3% year-to-date (YTD) with positive overall absorption of 252,944 square feet (sf). Tucson continued to face high demand with limited inventory while rising construction[…]
Cushman & Wakefield | PICOR is expanding its presence in downtown Tucson by securing three new lease listings that will serve both office and retail-oriented businesses.