A recent report from Cushman & Wakefield indicates a stong correlation is found between U.S. retail sales and U.S. industrial leasing activity.

We know retail sales measure economic activity in the economy and thus serve as an important indicator of economic health.  But, only those retail categories subject to the state’s transaction privilege (general sales) tax are included in the retail sales data produced by the Arizona Department of Revenue. For example, sales of food items at grocery stores that are not taxed by the state are not included.

The state Department of Revenue reports consumer spending is up to prerecession levels based on April sale tax receipts, covering March spending in Arizona, in fact up by a large 8.2% increase from the same period a year earlier, with taxable sales of $4.78 billion in March 2013. Monthly data for Arizona becomes available approximately two months after the sales were made to allow time for adjustments, as retailers sometimes report late and multi-establishment retailers sometimes misreport sales by county.

The Cushman & Wakefield research shown in the above graph indicates that industrial leasing activity in markets where they track have followed the U.S. retail sales closely year over year since 2000.  Industrial leases exceeded retail sales from 2000 – 2007, and as retail sales dropped in 2008 – 2009 industrial leases trended in the same direction.

According to the the Tucson Cushman & Wakefield / Picor industrial report for Q1 2013, “for the first time in two full years, the Tucson market had consecutive quarters of significant positive absorption… with lease activity fairly broad based”.  To view the full Q1 2013 Tucson Industrial report click here.

Economists with the Arizona Department of Revenue have stated April collections are typically high, with spring training and winter visitors still around. But it should also be noted that this spending increase is still on top of the record set last April for March sales. It seems to all be trending in the right direction and something to keep an eye on.

For the full Cushman & Wakefield “US Retail Sales vs. Industrial Industrial Leasing Activity” report  click here.

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El Molinito of Tucson (Wayne & Margaret Hallquist) purchased the former Chicago-style pizza parlor at 10180 N Oracle Road in Oro Valley for $1.25 million ($171 PSF). This will be its fourth restaurant location in the area. The 7,295 sq. ft. restaurant (built 2001) on 1.38 acres sold fully fixturized in an REO sale from Silver Point Capital’s affiliate SPCP Group IV, LLC.

The restaurant was most recently a Uno Chicago Grill franchise (2007) and later re-branded to the Loop Taste of Chicago. In 2007, the property was sold for[mepr-show rules=”58038″]$3.2 million.

El Molinito has been serving the Tucson Area for over 35 years and features a menu full of authentic Mexican dishes prepared fresh that is characteristic of their high standards and success.  The conversion from pizza to Mexican food is currently with an architect for review and opening date will depend on the extent of renovation and licensing process. Hallquist anticipates a grand opening to be towards the end of summer and will be hiring approximately 40 new employees for this spot.

As in their other locations, they serve breakfast, lunch and dinner with a big menu. They will have a full bar with indoor and outdoor seating that takes advantage of the views of Pusch View Ridge. The restaurant is also known for their catering and have banquet facilities that include delivery and setup for celebrations at home, or elsewhere. They current locations are open Sunday-Saturday, 10:00 A.M.- 10:00 P.M.

El Molinito’s three other locations are at 5380 E 22nd Street in Tucson, 2323 N Pantano Road, Tucson and at 3675 W Ina Road in Marana.

JP Morgan Chase Bank handled financing for the sale.

Greg Furrier, Rob Tomlinson and Aaron LaPrise, Retail Specialists with Cushman & Wakefield / Picor Commercial Real Estate Services of Tucson, handled the transaction.

We caught up with Hallquist at El Molinito on Ina Road (520) 744-1188. Silver Point Capital is at (203) 542-4200. Furrier, Tomlinson and LaPrise with C&W / Picor can be reached at (520) 748-7100.[/mepr-show]

Plan Tucson will replace the 2001 General Plan adopted by Tucson Mayor and Council and retified by the voters in 2001. State law requires that every ten years, a jurisdiction revisit its existing general plan and either readopt that plan or adopt a new plan. The City chose to prepare a new plan because it provides and opportunity to take a look at how Tucson has developed socially, economically, environmentally and physically since 2001 and to determine if that development has been consistent with comunity values, demographic trends, and best practices. Plan Tucson is a long-term policy doucment intended to guide decisions affecting elements that shape the city, such as housing, jobs, land use, transportaion, water and energy resources.

The Final Plan Tucson Draft, which is now available for review, reflects staff recommendations for revisions approved by the Planning Commission at the February 27, 2013 meeting. The recommendations for revisions were based largely on more than 800 comments provided by approximately 100 commenters representing agencies, nongovernmental organizations, and the general public.

To take a look at the Final Draft, click here:  FINAL PLAN TUCSON DRAFT

The final public hearing is scheduled for this evening:

Wednesday, May 29, 2013, at of after 6:00 P.M., in the Meeting Room of the Westside Police Service Center, 1310 West Miracle Mile, Tucson, Arizona 85705

The Planning Commission is established to advise the Mayor and Council and various City Departments on the adoption of long-range plans, policies, specific plans and regulations that affect development. Three previous public hearings on Plan Tucson were held on February 13, February 27, and April 3, 2013. Click here to go to the Planning Commission’s website to take a look at the material provided by staff.

Contact Jim Mazzocco of Tucson Planning Commission for more information (520) 791-4505.