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[…]
PICOR Connect | Trends in Commercial Real Estate
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[…]
Tucson’s average vacancy rate increased by 0.03% to 7.49% in Q1 2023, representing a 2.64% decrease year-over-year. The Tucson market’s leasing activity slowed as the new year turned, but towards the end of the first quarter picked back up velocity. The average gross apartment rent without utilities increased by $7 (.61%) from Q4 2022 to $1,164 per unit/$1.53 per square foot (sf). Of completed[…]
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.
In Q2 2021, Tucson industrial and flex space of all types remained the darling during tumultuous pandemic times and for the foreseeable future. E-commerce and expanded consumer buying power drove logistics and fulfillment demand and a 5.5% vacancy rate in the market.
For investors looking for investments $20 million and under, Tucson ranked number 4 on the list of small/middle sized markets. A larger driver of the demand for multifamily in Tucson is the attractive year-over-year (YOY) average rent growth of 9.1%. The shortage of affordable and traditional housing in Tucson also fuels apartment rental demand. With construction costs tripling on certain[…]
Tucson’s Q2 retail vacancy held steady at 6.2% amid a resurgence in demand for consumer goods, entertainment, and travel as vaccine availability and guidance opened the door for spending like it’s 2019. Summer midweek waitlists at restaurants have become a thing. With continued strength in class A space, class B and C properties saw improved absorption and declining vacancies. Among the sizzling[…]
CoStar Group, Inc., the data/analytics leader of the commercial real estate industry, has announced this year’s Power Broker Award recipients, recognizing professionals and firms who closed the highest transaction volume in commercial real estate deals, leading in their respective markets. In Tucson, AZ, Cushman & Wakefield | PICOR maintained uninterrupted achievement among both the Top Leasing[…]
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[…]