Manufacturing sector labor productivity increased 1.3 percent during the fourth quarter of 2018, the U.S. Bureau of Labor Statistics reported Wednesday, as output increased 2.3 percent and hours worked increased 1.0 percent. From the fourth quarter of 2017 to the fourth quarter of 2018, manufacturing productivity increased 0.7 percent, reflecting a 2.8-percent increase in output and a 2.1-percent increase in hours worked. Annual average productivity increased 0.6 percent from 2017 to 2018.
Durable manufacturing labor productivity increased 2.6 percent, with output increasing 5.7 percent and hours increasing 3.0 percent. Labor productivity in the nondurable manufacturing sector increased 1.2 percent, with output declining 1.2 percent and hours declining 2.4 percent.

Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked by all persons, including employees, proprietors, and unpaid family workers.

In the third quarter of 2018, nonfarm business productivity was revised down 0.1 percentage point, to an increase of 2.2 percent. Unit labor costs in the nonfarm business sector increased 0.9 percent in the third quarter, the same rate as previously reported.

In the manufacturing sector, productivity was revised up 0.1 percentage point, to an increase of 1.1 percent. Manufacturing unit labor costs decreased 1.3 percent, a 0.1-percentage point downward revision from the previously reported figure.

In the nonfinancial corporate sector, productivity was revised up 0.6 percentage point in the third

quarter of 2018, to an increase of 6.1 percent–the largest increase since a 6.7-percent increase in the fourth quarter of 2012. This upward revision to productivity is due primarily to a 0.6-percentage point upward revision to output, with a small contribution from a 0.1-percentage point downward revision to hours.

In the manufacturing sector, productivity increased 0.6 percent in 2018, as output increased 2.6

percent and hours worked increased 2.0 percent. The increases in annual average output and hours were the largest since 2011 and 2012, respectively. Manufacturing sector productivity has grown less than 1.0 percent in each of the last 8 years. The average annual rate of manufacturing productivity growth from 2007 to 2018 is 0.6 percent, well below the long-term rate from 1987 to 2018 of 2.6 percent.

Quarterly and annual data, where available, for all sectors from 2016 to 2018 in full historical measures can be found here: www.bls.gov/lpc/#data

TUCSON, Arizona – The iconic DeConcini Building at 2525 E Broadway in Tucson sold for $4.725 million ($147 PSF).

The 32,160-square-foot building located on 2.08 acres at the northeast corner of Broadway and Tucson Boulevards was 100% occupied at time of sale and purchased by Broadway Executive Plaza (Robert Assenmacher, manager). The seller was Du Besh LLC (Ken Silverman, manager)

Leasing was handled by Frank Arrotta and Doug Richardson of Tucson Realty and Trust.

The DeConcini family built the building in 1988 and sold it about eight years ago to the seller. Half of the building continues to be occupied by the DeConcini Law Firm. Other tenants include Salinas Insurance, Tucson Realty & Trust, The Veteran’s Administration and Sunstreet Mortgage.

Tom DeSollar, Broker, of Arizona First Properties LLC, represented the sellers, a local group of investors.

“The property had good fundamentals to attract buyers,” DeSollar said.  “It is near downtown Tucson with easy access to the University and the airport. The Broadway widening project will add value to the entire area.”

Brandon Rodgers, CCIM, of Cushman & Wakefield | Picor represented the investors.

For more information, DeSollar should be reached at 520.400.2732.  Rodgers can be contacted at 520.546.2714.

To learn more, see RED Comp #6507.

Office sale supported by area’s low 3.03% vacancy rate

PHOENIX, Arizona – The Phoenix office of JLL has completed the sale of One Agave Center, one of the only four-story office buildings situated along the South Tempe/Ahwatukee portion of the I-10 Technology Corridor in metro Phoenix’s Southeast Valley.

JLL Executive Vice President Brian Ackerman represented the property seller, Tryperion Partners and Griffin Partners. Orsett Properties was the buyer.

“This is the only four-story office building in this section of the I-10 Technology Corridor, in a very popular residential market. That demand is reflected in the area’s low Class A vacancy rate for office space located within one-half mile of the freeway,” said Ackerman. “Most of the businesses within One Agave Center are blue chip tenants who have been here for years and take great pride in their longevity and in the future of the area. This creates tremendous stability with existing and new tenants interested in One Agave Center.”

Built in 2000, One Agave Center is located on 4.56 acres at 8950 S. 52^nd St. in Tempe, Arizona, just south of Warner Road and East of Interstate 10 in the Southeast Valley submarket. The 77,432-square-foot, Class A office building offers direct freeway frontage and immediate access to I-10. It is also located just 2.5 miles north of the anticipated Loop 202 extension and within one mile of more than 40 dining and retail amenities. There are 7.8 million square feet of retail amenities within three miles of the project.

Part of the I-10 Technology Corridor, One Agave Center currently holds an 87.2 percent occupancy rate, 50 percent of which is from technology and advanced business services companies. Major tenants include Tyler Technologies, Radiall, Qwaltec, 84 Lumber and Berkshire Hathaway Home Services.