For the first time, C&W | PICOR Commercial Real Estate has partnered with The CoStar Group to deliver a "State of the Tucson Market" webinar, which will include perspectives from leaders of each commercial division and include the Sonora, Mexico border region.
PICOR Connect | Trends in Commercial Real Estate
Topics: Tucson, Industrial, Sonora Mexico, Commercial real estate, Economic development, Investment property, Absorption, Market trends, Vacancy, Lease rates, Warehouse, Leasing, Development, Office, Retail, Apartments, Multifamily
Apparently, even the Greeks were tired of being in the limelight, which helped the financing markets avoid another summer meltdown and allowed the market to build some momentum going into the fourth quarter. CMBS lenders are reporting strong origination volume and seem more comfortable than any time in the past few years that they will be able to book profits on the deals they’ve been warehousing. Spreads tightened steadily through July and August, though the market gave back about 5bps in spreads during the last two weeks.
Operating fundamentals took their usual second quarter dip with students, seasonal visitors and seasonal employees departing for the summer. Market occupancy dropped 285 units which is on the light side of typical for Tucson. During the past 12 months, total occupied units continued climbing upward, increasing 995 units over Q2 2011 and gaining 2,245 units since Q2 2010.
Once the poster child for national population growth and housing starts, Arizona, like other states historically reliant on construction, took a beating in the downturn, and the well-publicized forecast points to a long road to recovery.
The Tucson Apartment Investment market is beginning to wake up. Lender owned properties (REO properties), short sales, and sales through receivership are hitting the Tucson market in addition to a few non-distressed properties. PICOR is currently marketing two short sale properties, two REO properties, a sale through receivership, as well as two non-distressed investor owned properties. Additionally there are properties being offered by FNMA, CMBS special servicers, regional banks, and other lender agents who have taken control of properties to protect their position.
The Tucson apartment investment market is enjoying improved operating fundamentals and renewed interest from investors as confidence returns.