Industrial real estate picking up, could take off by 2015
The industrial commercial real estate market in Tucson for 2014 is expected to be much like 2013 – slow.
But that’s the overall picture, taking the bird’s eye view of all industrial properties, big and small, and combining them into one vacancy rate, which CRE brokers say is between 10 and 11 percent.
But all the industrial news isn’t slow news.
There were some large properties that moved last year including an 116,840 square-foot deal by Global Solar Energy Inc. at 8500 S. Rita Road, and Excelsior Super Foods re-lease of 112,000 square feet of the 140,000 square-foot space Solon Industries vacated at 6950 S. Country Club Road, according to Chuck Blacher of Tucson Realty and Trust.
Rob Glaser, an industrial specialist at Cushman & Wakefield | PICOR, said 2013 saw about 770,000 square feet of positive absorption of industrial space, but most of it was small spaces taken up by expanding small businesses.
“The majority of it has come from small business, you know the 3,000 square foot range, so larger spaces over 10,000 square feet have been relatively quiet. And spaces over 50,000 square feet, that’s where it’s been extremely quiet,” Glaser said.
One industrial sector, though, is making some noise, he said.
“Mining and mining related service is certainly one of the top three expansive industries in the Tucson area. M3 (Engineering and Technology), Jacobs Engineering, Freeport-McMoran and any number of companies that provide products and services are all experiencing expansion and absorbing industrial real estate in the Tucson marketplace,” Glaser said.
continue reading Inside Tucson Business article by Mark B. Evans