Amid the COVID-19 pandemic, more than 11,000 businesses in Arizona and 1,300 in Tucson received economic relief from the federal government. While Arizona posted one of the sharpest unemployment drops in the country in May, it increased in June from 9% to 10%. On a positive note, The University of Arizona reopened with a mixture of online and in-person classes on August 24th, and LendingTree.com named Tucson the number one searched market for “homes for sale” during the pandemic in the U.S.
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Topics:
Tucson,
Investment property,
Apartments,
Multifamily
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.
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Topics:
Tucson,
Industrial,
Economy,
Investment property,
Absorption,
Market trends,
Vacancy,
Office,
Retail,
Multifamily
CoStar Group, Inc., the data/analytics leader of the commercial real estate industry, recently announced this year’s Power Broker Award recipients, recognizing professionals and firms who closed the highest volume in commercial real estate transactions in their respective markets.
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Topics:
Tucson,
Industrial,
Commercial real estate,
Leasing,
Office,
Retail,
Leadership,
Multifamily,
Marketing
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%.
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Topics:
Tucson,
Economy,
Housing,
Commercial real estate,
Absorption,
Market trends,
Vacancy,
Leasing,
Apartments,
Multifamily
The Tucson apartment market has been driven by a multitude of factors. The first factor that is driving the apartment market is that higher paying jobs are entering the Tucson economy. Tucson’s job growth remained relatively stagnant the past five years with median household income in the metro area 15.5% below that of the U. S. Several recent, high-profile jobs announcements included hundreds of highly-skilled and highly-compensated positions. The second wave of employers contracting with and supporting these primary employers will broaden the opportunities at all levels. As reported by the MAP Dashboard project, Tucson’s MSA enjoys a lower cost of living than many of its peer cities in the West and was 3.0% below the nation, driven largely by rental rates (2015 data).
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Topics:
Tucson,
Commercial real estate,
Investment property,
Market trends,
Apartments,
Multifamily
In Tucson's apartment market, the vacancy rate for conventionally-operated, stabilized units decreased by 0.35% from the previous quarter, while improving 0.28% from one year ago to 6.52%. Eight of Tucson’s 15 submarkets experienced occupancy gains, with the greatest improvements occurring in Tucson Mountain Foothills (-2.12%) and South Tucson/Airport (-2.09%).
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Topics:
Economy,
Commercial real estate,
Investment property,
Leasing,
Apartments,
Multifamily
Tucson’s apartment market experienced positive growth in all of the market indicators from the previous quarter. The vacancy rate for stabilized units improved by 0.56% from the previous quarter to a rate of 6.27%.
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Topics:
Tucson,
Economy,
Commercial real estate,
Investment property,
Leasing,
Apartments,
Multifamily
Tucson’s multifamily market experienced minimal change from the previous quarter. The vacancy rate for stabilized units in Tucson increased 2 basis points from the previous quarter to a rate of 6.83%. This figure is very encouraging, given the seasonal nature of the Tucson apartment rental market. Many residents leave for the summer, escaping extreme heat, along with many students returning home. This is the lowest second quarter vacancy rate reported since 2006. Absorption decreased 29 units over the second quarter.
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Topics:
Tucson,
Economy,
Housing,
Commercial real estate,
Investment property,
Leasing,
Apartments,
Multifamily
No better news could have been reported for the Tucson apartment market than job growth, which translated into the strongest improvement in fundamentals in years. The vacancy rate for stabilized units in Tucson dropped 100 basis points (bp) from the previous quarter to 6.8%. This is the lowest first quarter rate since 2007. North Tucson, comprising Northeast Tucson (3.8%) and Oro Valley/Catalina (4.7%) reported the lowest vacancy rates. The University area experienced a 520 bps increase in vacancy, ending the quarter at 11.9%. One area of concern in this submarket is the potential of overbuilding in the student housing sector. In addition, older units, especially those in outlying areas, are losing ground in the form of lease-up and rents to newer units.
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Topics:
Tucson,
Commercial real estate,
Investment property,
Apartments,
Multifamily
