TUCSON, AZ (Feb. 3, 2026) — A wave of largely speculative industrial deliveries helped lift Tucson’s industrial vacancy rate to 7.8% in the fourth quarter of 2025, as 688,609 square feet of new product delivered—nearly 80% of it vacant—while net absorption stayed negative, according to new figures from CBRE.

Q4 2025 snapshot

CBRE’s report shows Tucson posted net absorption of -35,451 square feet in Q4 as space returned to the market, while average asking lease rates climbed 4.8% quarter-over-quarter to $0.88 per square foot NNN. Entering 2026, the metro had 330,093 square feet under construction, with roughly 93% uncommitted, setting up potential additional upward pressure on vacancy as that pipeline delivers.

Availability and vacancy: move-outs and new deliveries drove the increase

Overall industrial availability rose to 10.0% (from 9.0% the prior quarter), expanding from 3.8 million to over 4.0 million square feet of available space. The Southwest submarket was a key driver, with multiple move-outs and new availability contributing to sharp local increases. CBRE also noted that three fully vacant buildings were delivered in Q4, adding nearly 600,000 square feet of available space near the airport and along I-10 corridors.

Market-wide vacancy increased about 160 basis points to 7.8% in Q4, attributed in part to large Southwest move-outs and a newly delivered building still seeking its first tenant. Vacancy in Tucson remains below other regional markets—CBRE cited Phoenix at 11% vacancy for the quarter.

Leasing and absorption: 345,196 SF of gross activity, but Southwest dragged totals

CBRE recorded 345,196 square feet of gross leasing activity in Q4, but the quarter still ended with negative absorption. Most submarkets posted positive absorption, while the Southwest registered -211,852 square feet and the Northeast -10,986 square feet for the quarter.

Among notable Q4 changes:

• Arizona Daily Star’s former space—218,500 square feet—was cited as vacant and available for sublease, contributing to the Southwest shift.
• A 194,879-square-foot newly constructed building at Butterfield Logistics Center was reported as still awaiting a tenant.
• Notable move-ins included Zona Volleyball Club & Xcimer Energy leasing 39,000 square feet at 3160 S. Transcon Way, and Border States Electric Supply leasing 81,962 square feet at 763 E. Macarthur Circle.

Lease rates: average $0.88 NNN, with submarket divergence

Average asking rents increased to $0.88 per square foot NNN. CBRE reported the East Central submarket posted one of the biggest quarter-over-quarter jumps (from $0.92 to $1.02), while the Airport submarket eased slightly and the Northwest dipped quarter-over-quarter but remained the priciest at $1.05.

Development pipeline: deliveries peak since Q3 2023; 330,093 SF under construction

Four projects delivered in Q4—marking the metro’s highest quarterly delivery total since Q3 2023—including:

• Butterfield Logistics Center (3725 E. Columbia St.) – 194,879 square feet
• I-10 International Buildings B and C (4401 & 4501 E. Los Reales Rd.) in the Airport submarket
• A 120,000-square-foot Becton Dickinson build-to-suit at Valencia Rd. and Kolb Rd.

Looking ahead, CBRE highlighted major projects in planning—American Battery Factory and Project Blue—and said Beale Infrastructure is planning a data center campus on 290 acres in the Southeast submarket, with an estimated $3.6 billion economic impact, according to the report.

Read the full report here: Q4 2025 CBRE Tucson Industrial Figures

TUCSON, Ariz. (Jan. 23, 2026) — The former Kneaders Bakery & Café building at 9660 N. Oracle Road in Oro Valley has sold for $2.1 million ($517.88 PSF) and is slated for conversion to a Jimmy John’s with a drive-thru.

The sale closed on December 29, 2025.

Taylor Investments Oro Valley LLC, managed by Derek Taylor, acquired the 4,055-square-foot freestanding retail/restaurant building (built in 2016) on 1.13 acres from Markham Oro Valley, LLC / RCG Oro Valley LLC. The property—located in The Canyons at Linda Vista Trail within La Reserve—includes an existing drive-thru and a large covered patio area of approximately 465 square feet.

Jimmy John’s plans to occupy the northern half of the building and lease the remaining 1,986 square feet to another retail or restaurant user, with a shared patio concept. The franchise is expected to open in spring 2026.

Marcus & Millichap’s Net Leased Advisors represented the seller, with Christopher Lind, Mark Ruble, and Zack House.  ViaOne Commercial Real Estate’s Conrad Wilkerson represented the buyer and is also handling the leasing for the Jimmy John’s franchisee.

For more information, contact Conrad Wilkerson at 480.747.4486.

Source: RED Comp #12281.

TUCSON, AZ (January 21, 2026) — A Caliber Collision Center automotive investment property at 721–723 E. 12th Street in Tucson sold for $2,725,000 in an all-cash transaction that closed Dec. 31, 2025. The 16,000-square-foot mixed-construction building—built in 1946 on approximately 0.41 acres—traded at $170.31 per square foot.

The infill asset is configured for automotive body-shop repair and includes two grade-level roll-up doors and an office component. The property sold under a long-term lease to Caliber Collision Centers, reflecting continued investor demand for well-located automotive and service uses where replacement costs and limited land availability can support long-term value.

Automotive service properties like this tend to perform well as investments because they’re need-based, recession-resistant real estate. Even when consumers delay big purchases like new vehicles, they still repair and maintain the cars they already own—often increasing demand for collision and mechanical services as vehicles age. In addition, these facilities are typically highly functional and difficult to replace due to zoning constraints, environmental requirements, and the limited supply of well-located infill sites with yard area and roll-up door access. For investors, that combination can translate into durable tenancy, longer lease terms, and steady cash flow from operators whose businesses are tied to everyday necessities rather than discretionary spending.

Logan Apartments LLC (Centennial, Colorado) was the seller, and 140 S Euclid Partners LLC (Tucson) was the buyer.

David Volk and Joey Castillo, of VOLK Company, represented the investor in the transaction.

For more information, David Volk can be reached at 520.326.3200, and Joey Castillo at 520.495.2234.

Source: RED Comp #12288