One who gains strength by overcoming obstacles possesses
the only strength which can overcome adversity.
May 2015 Newsletter Chuck Corriere, MBA
Is Tucson Commercial Real Estate Up or Down?
Everyone I come in contact with tells me the Tucson market is improving very slowly. So, I decided to do some research. I’ve learned feelings are real but they don’t agree with the facts, at least not this time.
One trend is office vacancy. We have fewer SF occupied today than we did in January 2015. Actually 6,351 SF less according to CoStar. “That compares to positive 121,546 square feet in the fourth quarter 2014. Vacant sublease space decreased in the quarter, ending the quarter at 87,397 square feet.
Rental rates ended the first quarter at $18.57, an increase over the previous quarter.
A total of three buildings delivered to the market in the quarter totaling 37,179 square feet, with 30,711 square feet still under construction at the end of the quarter. “
On a positive note: “HomeGoods, Inc,, a subsidiary of The TJX Companies, Inc., purchased 108 acres at the northwest corner of Alvernon Way and Corona Rd. in Tucson, AZ for its proposed 800,000-square-foot distribution facility.
Five transactions totaling approximately $9.53 million took place to assemble this development site for the retailer.
On the other hand Tucson Industrial Market is improving.
The vacancy rate was down over the previous quarter, with net absorption totaling positive 270,292 square feet in the first quarter. That compares to positive 127,916 square feet in the fourth quarter 2014. Vacant sublease space decreased in the quarter, ending the quarter at 101,594 square feet.The Tucson Industrial market ended the first quarter 2015 with a vacancy rate of 10.1%. Again according to CoStar.
Tenants moving into large blocks of space in 2015 include: Cactus Portable Storage LLC moving into 45,908 square feet at 6161 S Palo Verde Rd, Arizona Optical Systems moving into 31,042 square feet at 5575 S. Houghton Rd, and Vista Inkjets, Inc. moving into 29,800 square feet at 4551 S Alvernon Way.
Rental rates ended the first quarter at $6.50, an increase over the previous quarter.
There was 270,000 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 7.0% from the previous quarter, with net absorption positive 49.59 million square feet in the first quarter. Average rental rates increased to $5.63, and 284 industrial buildings delivered this quarter totaling almost 37.5 million square feet.
It’s a mixed bag. Some days it feels like we’re on the way to a recovery. Other days it feels like more of the same or MOTS as I always say. Just MOTS!
I am actively looking to build relationships with Real Estate Investors and Owner / Users for Phoenix – Scottsdale – Tucson – Maricopa County – Pima County – Pinal County – Cochise County – Santa Cruz County –Yavapai County – Gila County – Arizona , USA
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Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix.
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Investors and owner/users need to really know the market before making a move in commercial investment properties as the market has a lot of moving parts today. What’s going on socio-economically, what’s going on demographically, what’s going on with location, with competing businesses, with public policy in general — all of these things affect the quality of your commercial properties/investment properties. Therefore, you need a broker who understands commercial properties. Please go to my web-site and get all the newsflashes and updates in Commercial Real Estate.
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Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. I am also a commercial land specialist in Phoenix and a Landspecialist in Arizona. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail firstname.lastname@example.org or call me on my cell 520-975-5207 or Office:480-948-5554
Walter Unger CCIM
Associate Broker, Kasten Long Commercial Group
2821 E. Camelback Rd.
Phoenix, AZ 85016
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