TUCSON, ARIZONA (Nov. 2, 2026) — Tucson’s industrial market gained ground in the third quarter of 2026, with a major Northwest lease helping reduce vacancy as developers expanded the construction pipeline, according to CBRE’s latest Tucson Industrial Figures report.
Third quarter vacancy was 8.0%, down from 9.0% the previous quarter but above 6.8% a year earlier. Quarterly net absorption reached 475,000 square feet, bringing year to date absorption to 315,000 square feet after occupancy losses earlier in 2026.
A confidential tenant’s 500,000-square-foot lease at 9880 W. Clark Farms Boulevard dominated the quarter’s activity. Northwest recorded 528,500 square feet of positive net absorption and the lowest vacancy among Tucson’s industrial submarkets at 1.0%, based on CBRE’s market statistics table.
Airport followed with 65,500 square feet of positive absorption, while North Central added 1,000 square feet. The remaining five submarkets posted occupancy losses, led by East Central at 60,000 square feet.
Occupiers signed approximately 760,000 square feet of leases during the quarter, bringing year to date leasing to approximately 1.7 million square feet. Other notable transactions included University of Arizona leases totaling 76,000 square feet at 9060 and 9052 S. Rita Road, a 29,000-square-foot Cox Enterprises renewal at 1440 E. 15th Street, and Crown Equipment Corp.’s 24,000-square-foot lease at 2717 E. Corona Road.
Average direct asking rent edged down to $0.82 per square foot per month, triple net, from $0.83 in the previous quarter. Airport had the lowest average asking rent at $0.64, while Northeast recorded the highest at $1.77.
Conditions differed sharply by building size. Properties smaller than 50,000 square feet had a vacancy rate of just 2.5%. Buildings measuring 100,000 to 249,999 square feet posted 17.1% vacancy, while the 250,000 to 499,999-square-foot category reached 18.7%.
Construction underway totaled 763,000 square feet. The pipeline included Rain Bird’s 500,000-square-foot build to suit facility in the Southeast submarket, Provident’s 163,000-square-foot speculative Valencia Airport Center at 3430 E. Valencia Road, and LiftMaster’s approximately 100,000-square-foot expansion at 2850 E. Drexel Road.
No new industrial space was completed during Q3.
The results show improving occupancy alongside continued investment in Tucson’s industrial base. However, with one transaction accounting for nearly two thirds of quarterly leasing, the next test will be whether demand broadens enough to sustain the recovery as additional space moves toward completion.
Source: CBRE Research, Tucson Industrial Figures, Q3 2026. Report follows CBRE tables.