Not long ago, tsunamis and commercial real estate were part and parcel of the same discussion. While no tidal waves--positive or negative--are expected to shake the Tucson industrial market, many wish to know: After bouncing along with only incremental change, when will the tide turn?
PICOR Connect | Trends in Commercial Real Estate
Is it another quarter of 'more of the same' for Tucson's commercial office market scene? Read on...
During my Q1 2012 Industrial Market update presentation for the Pima County Real Estate Research Council, I noted the schizophrenic market we seemed to be in at the time; a market which seemed to experience large swaths of space coming available and being absorbed, with the end result being no noticeable net gain or loss. This comment is also true today. For example, we watched a 100,000 sf[…]
After an extensive recessionary period when ‘uncertainty’ was the ruling word, Tucson’s commercial real estate sectors have settled into a sense of stability that signals firming fundamentals and a somewhat painfully slow return to market balance. Limited meaningful job creation remains the largest hurdle to overcome, with health care uncertainty and the impending presidential and congressional[…]
Tucson’s office market remains stable, yet far from dynamic, due in large part to limited job creation. In addition, health care uncertainty (preceding the Supreme Court decision) and the impending presidential and congressional elections have contributed to a cautious business climate. Some meaningful growth continues in Tucson’s health care sector, with economies of scale, more favorable[…]
Compared to 2010, retail property occupancy levels for 2011 were up almost 16% in PICOR's portfolio over the previous year. The average occupancy rate for PICOR’s managed portfolio was 80%, compared to 69% in 2010. While market wide vacancy was 91.6% at year end, PICOR's role in turning around distressed and receivership properties means a lower occupancy in our portfolio; however, year over[…]
2011 proved to be a better year for Tucson industrial property owners than the previous year. Occupancy levels were up: The average occupancy percentage for PICOR's managed industrial portfolio of 1.5 million square feet (sf) for 2011 was 78%, up from 71% in 2010. Property managers continue to operate their properties with a sharp eye to the bottom line, without sacrificing service levels. […]
The recessionary years in Tucson’s office market are best characterized by uncertainty and stagnation. As the sprouts of recovery begin to emerge, a sense of stability is present for the first time since 2008. That being said, it is a tentative recovery, far from robust.
2011 was a year in which more of the region’s landlords, prospective sellers and lenders reset their expectations, coming to terms with the protracted timeline for economic recovery. Pricing--both for sale and for lease--followed suit, adjusting to current market conditions.
The Tucson industrial market showed positive absorption of 139,147 square feet (SF) at the mid-year point in 2011. In this article, we highlight the results of the study, and continue with the mid-year Tucson Industrial MarketBeat commentary that was published in July.