TUCSON (October 23, 2024) — Picor’s multifamily team, Allan Mendelsberg, and Joey Martinez report the outlook for the Tucson multifamily market remains neutral for the third quarter in Marketbeat Tucson Multifamily Q3 2024.

For current owners, maintaining effective management and retaining high-quality tenants is crucial for sustaining strong asset performance in the face of prevailing challenges. Key factors include the upcoming election, projected declines in interest rates, and limited supply from small to mid-sized complexes. Institutional investment is likely to gain traction in 2025 as existing debt matures.

As Q3 2024 concluded, Tucson’s economy demonstrated significant achievements. The median household income rose 4.7% year-over-year to $70,900, boosting local consumer spending. The nonfarm employment sector expanded modestly by 0.2% year-over-year, reaching 403,400 jobs. Notably, Tucson’s unemployment rate decreased to 3.3%, lower than the national rate of 4.2%, reflecting a tightening local labor market. At the same time, Tucson’s population growth outpaced the national average, growing at 1.3% year-over-year, compared to the U.S. rate of 0.5%. This trend underscores Tucson’s continued economic strength and resilience, signaling sustained growth and a stable employment environment.

Tucson’s apartment vacancy decreased to 8.42% in Q3 2024, down 0.70% from Q2 2024. Highlighting continuous improvements, six of Tucson’s 15 submarkets experienced improvements in vacancies.

Inventory increased by 1,431 units, which shows the strong demand for housing. Market activity remained steady for properties under 100 units, with most transactions receiving multiple offers. In Q3 2024, no transactions occurred for properties over 100 units, which was anticipated following a considerable slowdown in sales of larger properties over the past year, as many owners and investors continued to monitor interest rates, the outcome of the presidential election, and the overall state of the economy.

This time of year, Tucsn slows down with prospects searching for rentals. The units on the market need to have a strong marketing strategy and materials and show well when prospects tour. Every tour counts, and more products are typically available this time of year for prospects to be more selective. We have seen prospects looking for value and trying to keep their budget in line for housing due to the current economy.

Retention is key, as is keeping increases within the current market. However, there are still pockets of Tucson looking for renovated units at a premium value.

Read the full Marketbeat Tucson Report here.

TUCSON, AZ (October 15, 2024)—The Raising Cane Restaurant’s ground lease at 2150 E Ajo Way in Tucson sold for $2.6 million ($40.53 PSF). The 1.47-acre pad is in Ajo Marketplace off I-10 and Ajo Way, adjacent to Kino Sports Complex, a 300-acre multi-use sports complex.

Raising Cane’s, known for its simple and focused menu, has experienced remarkable growth since its inception in 1996. The brand’s expansion story is one of strategic planning, a strong brand identity, and a commitment to quality that has resonated with customers across the United States and beyond. Over the past 15 years, the brand has enjoyed 62 consecutive quarters of positive same-store sales growth, with average unit volume (AUV) more than doubling since 2015.

Raising Cane’s has seen solid financial growth, driven by a cohesive company culture. In 2024, the brand is expected to generate over $4.5 billion in systemwide sales, surpass $6 million in average unit volume (AUV), and operate more than 788 restaurants, including 43 locations in the Middle East. The company plans to open over 90 new restaurants this year, mostly company-owned, including a new flagship in Nashville. In June 2023, Raising Cane’s launched a flagship location in Times Square, New York City, projected to earn over $20 million in its first year.

Raising Cane’s attributes much of its success to its strong corporate culture and core values. The company emphasizes a positive work environment, excellent customer service, and active community involvement. The “ONE LOVE” philosophy, which focuses on serving the best quality chicken finger meals, is a central theme in the company’s culture. This philosophy extends to how the company treats its employees, known as “Caniacs,” promoting a fun and supportive workplace.

Raising Cane’s is also known for its philanthropic efforts. The company supports various community initiatives, including education, animal welfare, and active lifestyle programs. Each restaurant is encouraged to engage with its local community, supporting local schools, sports teams, and charitable organizations. This community-oriented approach has helped Raising Cane’s build solid regional ties and a positive reputation.

Todd Graves and Craig Silvey conceived the idea for Raising Cane’s during a college business class project. Despite receiving a poor grade on the project, Graves was determined to make the concept a reality. He worked as a boilermaker and fisherman to save money. He later secured a loan to open the first Raising Cane’s in Baton Rouge, Louisiana, near the Louisiana State University campus. The restaurant was named after Graves’ dog, Raising Cane.

Chris Hollenbeck and Shane Carter with Cushman & Wakefield | Picor represented the seller, Scottsdale-based Grace Investment Company (Howard Grace, Director), and Scott Ruble with Marcus & Millichap of Phoenix represented the San Diego-based investor, AZ Landmark, Inc. (Joon Sok Kim, Director).

For more information, Hollenbeck should be reached at 602.224.4475, Carter is at 602.224.4442, and Ruble is at 602.687.6700.

To learn more, subscribers should go to RED Comp #11480.

MARANA, Ariz., (Oct. 9, 2024) – Mattamy Homes has purchased 22 acres of land for the creation of a new community, to be known as Tavira at Twin Peaks, in Marana, AZ. The land, located near the intersection of Twin Peaks Road and Camino De Mañana, was acquired by the company’s Tucson Division for a purchase price of $1.485 million. The deal closed September 5, 2024.

This new community will feature 45 homes on 60′ x 134′ lots, with homebuyers being able to select from five spacious single-story floorplans.

“We are excited to introduce Tavira at Twin Peaks to the Marana community,” said Anjela Salyer, President of Mattamy Homes’ Tucson Division. “This new community offers the perfect blend of convenience and natural beauty, with stunning views of the Catalina and Tortolita Mountains. As always, we strive to provide our homeowners with exceptional living experiences, and we are confident that Tavira will surpass their expectations.”

One of the main highlights of Tavira is its gated community feature, which provides a sense of exclusivity for residents. In addition, the community will offer a variety of amenities, including a sunset viewing and garden area, a pocket park with a ramada and playground, and a community trailway system. The property is also directly connected to the Camino De Mañana and Twin Peaks Road multi-use paths, which further leads to an 8-mile paved pathway on Tangerine Road, perfect for walkers, runners, and cyclists.

The Tortolita Preserve Trailhead is also easily accessible, only 3.5 miles northwest of the property, with the 8-mile Tortolita Preserve Loop Trail located just 2.9 miles away. Those who prefer more recreational activities can look forward to the upcoming improvements at Tangerine Sky Park, which is 2.5 miles from the community. The park is set to offer dog parks, playgrounds, railways, and court space as well as a splash pad. Additionally, the Tortolita Mountain Park, with its 40-mile trail system, is a short 12-minute drive away.

Tavira is strategically located with easy access to major transportation corridors, making it an ideal location for families and individuals looking for a convenient place to call home. With grocery stores, retail shops and a variety of restaurant options just minutes away from the property, residents can enjoy the best of both worlds – a tranquil and serene community, while still having all necessary amenities within reach.

Groundbreaking is anticipated to start later in September, with sales expected to open in the Summer of 2025.