First assessment of Q1 2013: Positive trends start to take hold

First assessment of Q1 2013: Positive trends start to take hold

With the first three months of 2013 in the books, commercial real estate firms are starting to assess the situation in the Tucson market. Picor Commercial Real Estate Services is the first in with a report that shows some positive trends:
• Retail: Vacancy rates remained at 8.2 percent, the same as at the end of 2012. Net absorption for the quarter totaled 102,088 square feet, while not enough change the vacancy rate, sustained positive absorption should start move rents up in about a year. Developers are starting to loosen up the purse strings for tenant improvements for long-term tenants.
• Office: Lease activity continued at an active pace with concessions tightening at better properties, though secondary and tertiary properties are still struggling for attention by offering lower rates and deep concessions. Vacancy rates ended the quarter at 11.9 percent, down from 12 percent at the end of 2012 but up from 11.7 percent at the end of the first quarter of 2012. Medical office space is leading the demand. Geographically, the Catalina Foothills has the scarcest supply, which could trigger construction. Added to the mix could be the outright sale of school sites closed by the Tucson Unified School District…..to continue reading the Inside Tucson Business Report

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