Much has been written about the significant joint undertaking by FASB and IFRS to update lease accounting rules in the name of improved transparency. With real estate leases comprising a high percentage of all operating leases, the potential impact for the commercial real estate industry looms large, for landlords, tenants, brokers and property managers alike.
The City of Tucson deserves substantial credit for the way in which they now deal with Certificates of Occupancy (C of O). In the past, challenges obtaining a C of O were significant enough to devalue properties and bankrupt tenants. The current policy places the focus on the building, not on the tenant. Under the new policy, a business owner may now purchase a building and have a reasonable[…]
Why should a business owner use a broker to represent them in their search and negotiations for office space? While we are focused here on office requirements and handle Tucson commercial real estate, the same principles apply for businesses looking to lease industrial or business park space, medical office, and even retail or shop space in Tucson or beyond.
Consistent with what we have seen in Tucson's commercial real estate market, general lease activity in the industrial sector has slowed since the beginning of July. The chart below, compiled by Cushman & Wakefield's research team, shows the direct relationship between these two sectors of commercial real estate: industrial and retail.
Retail sales and leasing in both the national and Tucson retail market hit a soft patch in the second quarter as QE2 stimulus money worked it way out of the economy. This news just in from ICSC is very encouraging as we experience debt ceiling and other economic turmoil in the national and international marketplace.
In the midst of ICSC's RECon, the retail real estate industry's largest deal making event, statistics continue to support the relationship between retail sales and the demand for industrial real estate. That being said, local growth remains tepid. However, as always, national trends and cycles will come to impact the Tucson market.
Forgive us a little self promotion...
As the recovery slowly continues and the dust settles, we are seeing some clear and notable patterns. While overall Tucson vacancy rates have climbed from an all-time low of 3.1% in 4Q 2005 to a high of 8.8% in 1Q 2011, not all properties have fared equally. As landlord requirements on credit have loosened and preferences begin to shift from national to local tenants, a consistent “flight to[…]
A short history...PICOR began quietly, as a humble Tucson commercial real estate boutique firm in 1985. Back in the day, our founder gave a sly smile when anyone would say, or imply, "who are these guys?" Never seeking to dominate the market--only to deliver service that exceeded expectations--growth happened. It happened organically. Mike Hammond, then Tucson’s top producing commercial broker,[…]