The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report from April 8 thru 12, 2019.

INDUSTRIAL – 6630 S. MEMORIAL PLACE, TUCSON
Wal-Mart Stores East, LP renewed a lease for a 70,000-square-foot warehouse space located at Century Park 6630 South Memorial Place from Levin Family, LP. John Slattery and Jesse Blum of CBRE’s Tucson office represented the landlord and James Holbrook of Payson Smith Holbrook represented the tenant.

OFFICE – 100 N. STONE AVE., TUCSON
Dave Volk and Bruce Suppes of CBRE’s Tucson office represented the landlord in the lease of a 5,953-square-foot office in the Pioneer Building at 100 North Stone Avenue, Suite 900 from Holualoa Pioneer, LLC.  [mepr-show rules=”58038″]Asking lease rate: $19.50 SF/YR Full Service[/mepr-show]

RETAIL – 2912 W. INA RD., TUCSON
TG-IV Capital Partners, LLC, doing business as Trident Grill, leased 4,065 square feet for 4th Tucson Trident Grill location. This new Trident Grill will be located at 2912 W. Ina Road at the northwest corner of Ina Road and Shannon Road and is expected to open early this summer. Scott Soelter with NAI Horizon represented the Trident and Jason Wong and Brian Chang with Red Point development represented the landlord.

OFFICE – 500 N. GARDEN AVE., TUCSON
NCI Information Systems, Inc. leased a 3,500-square-foot office space at Plaza San Lorenzo, 500 North Garden Ave. from 500 N Garden, LLC. Jeff Casper of CBRE’s Tucson office represented the landlord and Ron Zimmerman of Cushman & Wakefield | Picor represented the tenant.

OFFICE – 529 WETMORE AVE., TUCSON
DFP Consulting, LLC leased a 3,127-square-foot office space located at 529 Wetmore Avenue from Ross Capital, LLC. Jeff Casper of CBRE’s Tucson office represented the landlord and Julian Willetts of Remax represented the tenant.

OFFICE – 477 S. S. MEYER AVE., TUCSON
Studio 1127 leased a 1,369-square-foot office space located at 447 South Meyer Avenue from Bacon Industries. Jeff Casper of CBRE’s Tucson office represented the landlord. [mepr-show rules=”58038″] Tenant Phone: 520.225.7015[/mepr-show]

RETAIL – 8505 E 22nd ST., TUCSON
Keith Fowlkes and Tara Baca, dba K & T Treasures Thrift Store, leased approximately 1,000- square-feet of retail space located at 8505 E. 22nd Street, Tucson, Arizona, from Shawn R. Abrahams. Frank Arrotta of Tucson Realty & Trust Co. represented both the Landlord and the Tenant in the transaction.

Send sale and leases to [email protected].

Phoenix, Arizona — Colliers International of Greater Phoenix is reporting, fresh off a banner 2018, Phoenix saw continued growth in the first quarter. During the 12-month period ending in February, preliminary estimates show that employers added nearly 64,300 net new jobs, an increase of 3.1 percent which places Greater Phoenix #2 in overall job growth for the country.

According to the BLS (Bureau of Labor Statistics), over the year, nonfarm employment rose in 25 of the 51 metropolitan areas (with a 2010 Census population of 1 million or more), while employment was essentially unchanged in 26 areas. The largest over-the-year percentage increases in employment in these large metropolitan areas occurred in Orlando-Kissimmee-Sanford, FL (+3.9 percent), Phoenix-Mesa-Scottsdale, AZ (+3.1 percent), and Nashville-Davidson–Murfreesboro–Franklin, TN (+3.0 percent).

Overall the Greater Phoenix office market had a strong first quarter, net absorption increased to approximately 850,000 which was the second highest first quarter reading in the last seven years. Employers continue to add workers at a very active pace, fueling tenant demand for office space and fueling new development.

Despite increased deliveries, tenant move-ins still outpaced new construction which drove vacancy down to 13.6 percent, 160 basis points (bps) lower than one year ago. Continued vacancy declines are supporting rent growth with asking rents ending the first quarter at $25.63 per square foot, up nearly 5 percent from one year ago.

Investment sales volume increased 19 percent to $387 million across 48 transactions. The median price per SF remained flat at $147 with cap rates at 7.1 percent.

Outlook:

The outlook for the Greater Phoenix office market remains bright as local businesses continue to expand and new companies continue to bring operations to the Valley. According to GPEC’s (Greater Phoenix Economic Council) YTD FY2019 Overview, they have assisted in bringing 31 companies to the Valley which added 6,524 new jobs to the region with an average wage of $55,728.

Strong job growth is supporting demand for office space, and with the overall vacancy rate tightening, new development is gaining momentum. Projects totaling more than 2.2 million are under way and development of new projects, or additional phases of current projects, will likely enter the development pipeline in the coming quarters.

On a macro level, in January, as a result of substantial market volatility at the end of 2018, not only did Chairman Powell reverse course on Fed balance sheet reductions, he, as well as other Fed governors, decided to stop ongoing interest rate increases leaving rates at their current 2.5 percent.  In a sign of a more dovish Federal Reserve moving forward, Stephen Moore, President Trump’s recent pick to serve on the Fed, called for an immediate 50 bps decrease in interest rates to counter both tariffs and growing financial instability, particularly from slowing growth in China and Europe.

The net result, markets remained robust for most of the first quarter and the drag on real estate prices many were expecting, as a result of rising rates, has not materialized. With a more dovish Fed, and more talk of QE 4 (Quantitative Easing), expect elevated demand for commercial real estate assets to continue.

To learn more see Colliers Q1 Office report here: 2019-1Q-Office_Arizona-Report-Colliers

TUCSON, ARIZONA — Earlier this month, Arizona State Treasurer Kimberly Yee issued a proclamation recognizing April 2019 as Financial Literacy Month in the State of Arizona. Yee signed the Financial Literacy Month Proclamation after reading Curious George Saves His Pennies by H.A. and Marget Rey to a class of first graders at Griffith Elementary in the Balsz School District of Phoenix.

“Being able to manage your own money is a simple, but important life skill that will matter when our children get out into the real world. One in eight millennials have debts in collections. Financial education is needed now more than ever,” said Yee. Today in Arizona, financial literacy is not part of high school graduation requirements. Financial literacy includes, but is not limited to, budgeting, saving, spending, investment, credit, banking and balancing a checkbook.

Yee has been a strong advocate for personal financial literacy for over a decade. As Senate Majority Leader, she passed S.B. 1442 which created a seal of personal finance to be affixed on high school diplomas to indicate proficiency in financial literacy. She continued her advocacy earlier this year when she teamed up with Sen Sylvia Allen on S.B. 1184. S.B. 1184 will require a Financial Literacy and Personal Financial Management component to be included as part of the Arizona Economics course requirement of high school graduation.

Yee’s Financial Literacy Proclamation can be viewed here.

Allstate Foundation Purple Purse and TMC Foundation have partnered with 5 local AllState agents: Mike Arambulo, Mike Brown, Christopher Benear, Debe Campos-Fleenor and Steve Hite along with Dave and j Wickey of Zinatt Technologies to promote the importance of financial literacy for women and will be bringing Yee to Tucson for a luncheon being held at the YWCA of Southern Arizona, 525 N Bonita Avenue,  on Wednesday April 24, 2019, registration starting at 11:30 am.

ll proceeds from this event will be directed to the TMC Foundation and will assist the patients and their families who come to the Emergency Room seeking assistance.

All proceeds from this event will be directed to the TMC Foundation and will assist the patients and their families who come to the Emergency Room seeking assistance.

The event cost is $20 per person and includes lunch catered by the YWCA El Corazon Catering.

Try to RSVP by Wednesday April 17^th to avoid disappointment. Go to Event Brite to reserve and then pay at the door. https://www.eventbrite.com/e/lunch-with-az-state-treasurer-kimberly-yee-tickets-60169140519

“Financial abuse is an invisible weapon. It happens in 99% of domestic violence cases and is why many victims can’t leave. Help end the cycle of abuse.”