Greetings from the Tucson Commercial Real Estate Group of Tucson! We’re back with our market update, ready to unfold the captivating narrative of Tucson’s industrial sector. Buckle up as we embark on a thrilling journey through the highs, the lows, and the promising horizons of our dynamic market.
 

A Tale of Supply and Demand: Unraveling the Dynamics of Tucson’s Commercial Real Estate Market

In 2023, Tucson experienced a monumental influx of supply, sparking whispers and murmurs across the metro. This surge propelled the vacancy rate to 5.9%, but fear not, dear readers, for our market’s resilience shines through. Despite the uptick, vacancy levels remain steadfast, reflecting the robust leasing activity that underpins property performance.
 

The Logistics Renaissance: Redefining Commercial Real Estate in Tucson

Logistics tenants have emerged as knights in shining armor, galloping forth to fuel demand. With a keen eye on distribution and warehousing spaces near Tucson International Airport, these champions of commerce breathe new life into our industrial landscape.
 

A Construction Mirage: Unveiling Realities in Tucson’s Commercial Real Estate Landscape

Unlike other regions basking in the glow of construction booms, Tucson’s development pipeline remains a serene stream rather than a roaring river. As we look around, we find no cranes piercing the skyline, no thunderous echoes of groundwork being laid. Yet, fear not, for our city’s modest approach paves the path to sustainable growth.
 

Tucson Commercial Real Estate: Your Affordable Oasis in the Desert of Opportunity

Tucson’s allure lies not only in its rugged beauty but also in its affordability. With average rents hovering at $10.70/SF, we stand as a beacon of opportunity amidst the towering rents of Southern California. Proximity to crucial trade points further sweetens the deal, attracting a steady stream of tenants seeking a haven for their ventures.
 

Rent Growth: The Phoenix Rising from the Ashes of Tucson Commercial Real Estate

After the fiery fervor of 2021 and 2022, rent growth has begun its descent to normalization. While Tucson may lag behind the national average, our market’s steady trajectory paints a picture of resilience and stability. As we journey into 2024, expect rent growth to settle near the 1.5% range, a testament to our market’s equilibrium.
 

Shifting Sands, Soaring Dreams: A Market in Motion in Tucson’s Commercial Real Estate

In the realm of transactions, Tucson saw a moderation in industrial asset sales, reflecting the cautious dance of investors amidst economic uncertainties. Yet, amidst the ebb and flow, our market remains a beacon of opportunity, with steady demand and modest construction keeping vacancy rates on a promising downward trajectory.
 

Whispers of Transformation: Amazon’s Echo Reshaping Tucson’s Commercial Real Estate Landscape

The presence of e-commerce titan Amazon reverberates across Tucson, casting a spell of allure upon our industrial landscape. With eyes on logistics supremacy, Amazon’s footprint is a magnet for tenant interest, propelling our market towards new horizons.
 

Illuminating Opportunities: Submarket Spotlight on Tucson’s Commercial Real Estate

Southeast Tucson and the airport vicinity emerge as stars in our industrial constellation, boasting robust rent growth fueled by tight vacancies and limited supply. As tenants flock to these coveted locales, landlords find themselves in the enviable position of pushing rents skyward.
 

A Treasure Trove of Opportunities in Tucson’s Commercial Real Estate Sector

For tenants with grand visions and more giant footprints, discounts beckon like hidden treasures waiting to be unearthed. With blocks of space exceeding 50,000 SF fetching attractive rates, the stage is set for ambitious ventures to thrive.
 

Marana Unveiled: Shining as a Beacon of Growth in Tucson’s Commercial Real Estate Market

The burgeoning town of Marana emerges as a nexus of potential, bridging Tucson with the bustling markets of Phoenix. With developments like the Southern Arizona Logistics Center on the horizon, Marana stands poised to carve its place in Tucson’s industrial tapestry.
 

Seizing the Horizon: The Unmatched Advantage

Tucson Commercial Real Estate stands tall as an oasis of stability in an uncertain landscape. With a diverse economy, a thriving labor pool fueled by esteemed institutions like the University of Arizona, and a cost of living that rivals that of smaller markets, Tucson offers a unique blend of opportunity and affordability.

As we bid farewell to another riveting quarter, let us march forward with optimism and resilience, knowing that the pulse of progress beats strong within the heart of Tucson’s industrial sector.

In conclusion, the Commercial Real Estate Group of Tucson proudly presents this report. Our team is here to assist you if you want to explore the dynamic opportunities within Tucson’s commercial landscape or require expert guidance to navigate its vibrant market. Don’t hesitate to reach out for personalized advice and insights. Contact us at 520-299-3400 or visit our website at www.cretucson.com for further information. Let us help you make your next strategic move in Tucson’s commercial real estate sector.