Like Forrest Gump and Jenny, or peas and carrots, commercial real estate and the economy enjoy a special relationship. Thus at Cushman & Wakefield | PICOR, we introduce our quarterly commercial real estate update with an economic backdrop to inform our perspective.
Read MoreTopics: Tucson, Industrial, Economy, Investment property, Absorption, Market trends, Vacancy, Office, Retail, Multifamily
The Tucson industrial market remained strong at midyear, as evidenced by our primary metric: Vacancy rate. Once again, vacancy has ticked-down, this time to 5.1%. Echoing the comments last quarter, Tucson is experiencing a “plateau effect” in the industrial sector in that the dynamic run-up in absorption slowed as the market leveled off at a highly-occupied equilibrium.
Read MoreTopics: Tucson, Industrial, Economy, Commercial real estate, Absorption, Market trends, Vacancy, Lease rates, Warehouse, Leasing, Manufacturing
The vacancy rate of conventionally-operated, stabilized units increased 0.17% from last quarter to 6.1%. The University submarket had the lowest vacancy of any submarket at 3.7%. South Central Tucson, Southeast Tucson, and Pantano/Lakeside were the only three submarkets to record vacancies over 7.0%, with vacancies of 8.3%, 7.7% and 7.0% respectively. Five of the 15 submarkets experienced improved vacancy, with Tucson Mountain Foothills leading the way with a vacancy reduction of 2.0%.
Read MoreTopics: Tucson, Economy, Housing, Commercial real estate, Absorption, Market trends, Vacancy, Leasing, Apartments, Multifamily
Positive momentum continued its five-year trend in 2018 in the Tucson industrial market, with vacancy improving to 5.7%, cut in half from its highest point in recent years. At year end, vacancy was lowest in the city center at 1.5% and highest in the Southwest/Airport area at 12.8%. Net absorption was 50.4% stronger than in 2017, and thanks to Amazon’s two projects, space under construction has quadrupled year over year. Significantly, Amazon is entering the market with an 850,000 square foot (sf) distribution center under construction in the southeast sector and a new 50,000 sf service center in the southwest.
Read MoreTopics: Tucson, Industrial, Economy, Commercial real estate, Economic development, Market trends, Vacancy, Lease rates, Logistics, Manufacturing
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.
Read MoreTopics: 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.
Read MoreTopics: Tucson, Economy, Economic development, Transportation, Construction, water
A bipartisan measure tucked into the 2017 federal tax law is providing a significant opportunity for investors to reduce their capital gains taxes while spurring economic growth in designated areas of Arizona.
Read MoreTopics: Tucson, Economy, Economic development, Community, Investment property, Distressed assets, Finance
Improvement in the Tucson office market's performance continued into Q2 2018. Positive year-to-date absorption of 146,400 square feet (sf) improved the overall market vacancy a full 50 basis points to 8.4% from last quarter’s 8.9%. Vacancy reached its lowest mark since Q3 2008.
Read MoreTopics: Tucson, Economy, Commercial real estate, Absorption, Lease rates, Leasing, Office, Medical office
| The Tucson Metro Chamber announces the election of the 2018-19 board chair, six new board members and the full slate of board members. The Tucson Metro Chamber board of directors elected Barbi Reuter, president for Cushman & Wakefield | PICOR, as chair of the board for the 2018-2019 term. Reuter has held a seat on the board of directors since 2016 and has volunteered countless hours working with the Chamber on business and community issues. |
Topics: Tucson, Economy, Commercial real estate, Economic development, Community
“Wow! What a great time to be in Industrial real estate!” These are sentiments not heard in almost a decade. During the depths of the doldrums, the Tucson commercial real estate market was marked by Foreclosures and REO sales, “blend and extend” lease negotiations, downsizing (or “rightsizing” as it was more positively termed) and a general sense of survival.
Read MoreTopics: Economy, Commercial real estate, Economic development, Investment property, Market trends, Lease rates, Warehouse, Transportation, Logistics, Manufacturing
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