Cushman & Wakefield | Picor has released its market reports for the first half of 2016.

Preliminary Bureau of Labor Statistics data reported that Metro Tucson added 15,636 jobs year-over-year through May 2016, with total employment of 455,312 and a second quarter unemployment rate of 5.0%. Due to recent high-quality jobs announcements and expansion by current employers, the forecast is for continued improvement.

Economic optimism and consumer confidence were more-widely present, jump-started by Caterpillar’s decision to locate downtown, forecasting creation of 600+ jobs at an estimated economic impact of $600 million. Tucson’s steadily improving market performance was enhanced by this announcement and others, like the Comcast opening, expanded airline service, and downtown activity including attraction of an AHL professional hockey team, the Tucson Roadrunners, along with retail, residential and hotel construction, both planned and underway.

Tucson’s multifamily market experienced minimal change from the previous quarter. The vacancy rate for stabilized units increased 2 basis points from the previous quarter to a rate of 6.83%. This figure is very encouraging, given the seasonal nature of the rental market. Many residents leave for the summer, escaping extreme heat, along with many students returning home. This is the lowest second quarter vacancy rate reported since 2006. Absorption decreased 29 units over the second quarter. The average monthly gross rent (without utilities) increased $5 (0.75%) to $674 per unit or $0.91 per square foot for the second quarter. The overall economic market has been improving in Tucson and notable optimism has spread throughout many of the owners, investors and property management companies. The tone of the conversations is increasingly positive and encouraging. Financials for most owners have improved over the last few years, and many owners are now completing capital improvement projects that had previously been neglected, such as roofing, asphalt, and unit renovations. Cushman & Wakefield | PICOR expects to record continued slow growth continue over the next few years.

For full reports see: 

Office Report Here: Tucson_Americas_Alliance_MarketBeat_Office_2Q2016

Retail Report Here: Tucson_Americas_Alliance_MarketBeat_Retail_2Q 2016

Industrial Report Here: Tucson_Americas_Alliance_MarketBeat_Industrial_Q22016

Multifamily Report Here: Tucson_Americas_MarketBeat_Multifamily_Q22016

Richmond American (Rick Morris, Land Acquisition) purchased 50 platted and engineered lots at Mountain Vail Estates for $1.501 million ($30,000 per lot). This is the first half of approximately 94 lots being re-platted by the seller, MC 140 LLC, an affiliate of Diamond Ventures.

Buyer will develop the lots for construction. This is not Richmond’s first acquisition in this southeast subdivision with 501-lots in the Houghton Corridor.

Lot sizes were reported to be about 80 percent 50’x115’ and 10-15 percent 60’ wide lots.

To learn more, see RED Comp #3968.

Richmond American also purchased 34 platted lots at Linda Vista Heights for $884,000 ($26,000 per lot) in this northwest submarket of Tucson for development. Lots are 50’x110’ and 50’x 120’.

Charlie Bowles of Bowles Realty & Investments in Tucson handled the transaction for the seller.

To learn more, see RED Comp #3956.

At Eagle Point Estates, in the western submarket of Tucson, DR Horton purchased 8-SFR lots for $318,000 ($39,750 per lot). This was a part of a rolling option agreement for 83-lots at Eagle Point Estates. The seller, Tierra Valencia of Tucson is an affiliate of the Estes Companies (Bill Estes III, manager).

DR Horton began construction at Eagle Point Estates back in January 2015 and are over half-way to completion, with 42-lots remaining

Dan Feig and Aaron Mendenhall of Chapman Lindsey represented DR Horton in the transaction.

To learn more, see RED Comp #3959.

Charges 2 LLC (Brandon Rodgers, member) purchased a 5,000-square-foot industrial building located at 1140 N Rosemont Blvd in Tucson from Richmond Hills Investments LLC (Jesse Chen, trustee) for 343,000 ($69 PSF). The buyer purchased to lease property.

Built in 1998 the industrial warehouse building is on a 19,424-square-foot lot zoned C-2. The buyer purchased it for lease.

Brandon Rodgers, CCIM, Principal with Cushman & Wakefield | Picor, represented and was a principal in the buying entity and James Robertson, MBA, CCIM, with Realty Executives Tucson Elite represented the seller in the transaction.

For additional information, Rodgers can be reached at 520.748.7100 and Robertson should be contacted at 520.878.1629