PICOR Connect | Trends in Commercial Real Estate

Trends in the commercial real estate sector often parallel a community’s economic health, and the Tucson business climate is no exception. Industry metrics like vacancy rates, rent trends, and sale prices can track with business sentiment and performance, providing a helpful barometer of the times.

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Topics: Economy, Commercial real estate, Economic development, Market trends, Leasing, Development, Construction

Over the last year, education was the most visible issue in Arizona.  But, if you were watching closely, infrastructure and water issues were discussed and debated throughout the state as well.  In some cases progress was made, in others, the conversations continue. In the opening weeks of the 2019 Arizona legislative session, two infrastructure issues dealing with water and highway funding will take center stage. 

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Topics: Tucson, Economy, Economic development, Transportation, Construction, water

Believe it or not, something good may be happening in Washington, D.C. Last week 12 local business executives, Tucson Metro Chamber Vice President of Government Affairs Robert Medler and I visited Arizona's senators and representatives to advocate for our local community.

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Topics: Economy, Economic development, Community, Investment property, Transportation, Construction

As we entered the second quarter of 2015, key drivers for the Tucson industrial market included logistics and call centers, with the mining industry preparing for the next wave.
 
Tucson’s unemployment rate dropped 0.3 percentage point to 5.6% in February, considered close to full employment. That being said, the slow pace of job growth remained of primary concern and impeded stronger market progress.

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Topics: Tucson, Industrial, Land, Commercial real estate, Investment property, Warehouse, Construction

There has been much written about the new HomeGoods Tucson distribution center lately. What hasn’t been told until now, is the creative brokerage it took by a group of real estate professionals to assemble the land for the HomeGoods Tucson deal to come together.  It really started almost two years earlier, when the Massachusetts-based TJX Companies, HomeGoods’ parent company, broadcasted its requirements for a 100-acre site appropriate for a new western regional distribution center to be built.

Rob Glaser, CCIM, SIOR, Principal at Cushman & Wakefield | PICOR credited as the mastermind behind this real estate assemblage told us when he first heard of the requirement it was just his intuition that told him Tucson would be an ideal place for the company.

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Topics: Tucson, Industrial, Economy, Land, Commercial real estate, Economic development, Warehouse, Development, Construction

Operating fundamentals continued to slowly improve in Tucson with modest decreases in vacancy, positive absorption, a small increase in rental rates and some continued decline in rental concessions. Average vacancy dropped from 9.4% to 9.3% and the average rental rate essentially held steady, averaging $635. In a continuation of a four-year trend, higher occupancies and stronger increases in rental rates occurred in submarkets with higher-grade properties. The Northwest, Catalina Foothills, and Northeast submarkets, which have the strongest demographics in the region, had the lowest submarket vacancies in Tucson.

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Topics: Tucson, Housing, Commercial real estate, Investment property, Absorption, Market trends, Vacancy, Development, Construction, Apartments, Multifamily

The TAR Scorecard gathers data from different sources to present a broader, comprehensive view of the overall real estate-housing and development market. The objective is to identify emerging trends in various subsectors. Viewed separately, these subsectors may not appear to be interrelated.  But over time, the data ultimately converges to affect the performance of the entire market.

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Topics: Tucson, Housing, Land, Economic development, Market trends, Development, Construction

From Vancouver, B.C. with the lowest tracked vacancy rate to Birmingham, Alambama with the highest, Cushman & Wakefield has compiled statistics on the North American industrial markets. Where does yours stack up against the field of primarily U.S. cities and industrial markets?

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Topics: Tucson, Industrial, Commercial real estate, Investment property, Market trends, Vacancy, Lease rates, Warehouse, Manufacturing, Construction

We've been in the prognostication business of late, and have gathered a great deal of data on the Tucson commercial real estate markets in one slide deck.

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Topics: Tucson, Industrial, Sonora Mexico, Commercial real estate, Economic development, Investment property, Absorption, Market trends, Vacancy, Lease rates, Construction, Office, Retail

On Wednesday, Metropolitan Pima Alliance (MPA) announced Pima County's approval of fee credits for prior new development. When considered with last month's change in connection fee structure for new construction, the comprehensive changes that MPA was able to negotiate with Pima County will certainly save Tucson-area commercial real estate owners and investors substantially when doing new ground-up construction or completing tenant improvements.  These actions are well-timed, as we hope to see increased momentum in the volume of new construction and commercial real estate transactions.

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Topics: Tucson, Commercial real estate, Economic development, Development, Construction