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[…]
PICOR Connect | Trends in Commercial Real Estate
During the first quarter, the Tucson industrial market registered a record-breaking low vacancy rate of 1.8%, while overall absorption reached 597,391 square feet (sf). This trend is not new as Tucson's supply continues to fall behind the demand, exacerbated by a 50% increase in construction costs over the past year. Consequently, lease rates and terms have been steadily increasing.
The Trend Report, May 2023 Edition | Volume 16 - Issue 05
If we think about it, the last five years have been somewhat of a ‘perfect storm’ for Mexico. The first conversations about nearshoring, came about when the US decided to place tariffs on Chinese imports in early 2018. This coincided with the ratification of the revised NAFTA Agreement (USMCA) later that year, immediately followed by the[…]
The top sale this past week at Cushman & Wakefield | PICOR was of The Beverly on Fifth, a residential property in Central Tucson, where our Multifamily Team, Allan Mendelsberg, and Joey Martinez represented both parties in this transaction. The top lease was of industrial space within Southwest Tucson, where Robert C. Glaser, Industrial Specialist, represented the landlord in this transaction.
The top sale this past week at Cushman & Wakefield | PICOR was of a 9,900 square foot (SF) industrial building located near Interstate 10 where Paul Hooker, SIOR, Principal, Jesse Blum, Principal, and Andrew Keim, Industrial Specialists represented the seller in this transaction. The top lease was of a 16,100 SF industrial space at North Business Center where Paul Hooker, SIOR, Principal,[…]
Last week, our top sale and lease transactions comprised of industrial properties. These transactions illustrate the growing economy and the high demand for industrial space. Meanwhile, the vacancy rates are at a record low of 3.2%. Companies are marking Tucson as a desirable location as we see national growth in the manufacturing and logistics industries.
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.
Smaller scale manufacturing operations (1,000-5,000 SF) seem to be opening up shop and gaining momentum faster than ever. Why is this happening? I think the cost of manufacturing machines has come down and because of the strong economy, entrepreneurs have the spirit and the capital to start a manufacturing operation or grow their business with existing cash or lines of credit. Also, the cost of[…]
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[…]
“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.