PICOR Connect | Trends in Commercial Real Estate
Post-COVID Consumer Spending & Drive-Through Property Demand
Consumer spending has been trending away from soft goods into experiences, food, and entertainment driven by post-COVIDdemand.
Q2 2022 Multi-Family Marketbeat
Throughout Q2 2022, the Tucson market remained relatively strong compared to other one million plus population markets.
Q2 2022 Office Marketbeat
During Q2, overall activity remained static despite more workers returning to the office. National companies were more likely to insist on a return to the office while local employers took more time to work alternatives.
Q2 2022 Industrial Marketbeat
Overall market sales volume remains strong with $68.1 million trading this quarter.
Tucson Office Market: In Flux or Flexing?
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.
State of the Tucson Office Market
The Tucson office market had a strong showing to finish 2020, with 162,000 square feet (sf) of office space coming off the market during the fourth quarter. Quarterly absorption contracted to negative 19,000 sf from the previous quarter’s negative 181,000 sf. The vacancy rate improved by twenty basis points to 9.2% from 9.4%, while the overall average rental rate for the metro area dropped to[…]
Tucson Industrial Insights at Midyear
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.
Tucson Industrial Market Review & Outlook
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[…]