The Tucson Lease Report includes leases reported to the Real Estate Daily News during the week of February 3-7, 2014.

OFFICE – 3130 E. BROADWAY BLVD. – TUCSON
CODAC Behavioral Health Services of Pima County of Tucson leased 16,999-square-feet at 3130 E. Broadway Boulevard in Tucson from LC 3130, LLC.  Tom Nieman, Principal and Office Specialist, with Cushman & Wakefield | PICOR, represented the landlord and Tom Knox, SIOR, Principal and Office Specialist and Paul Hooker, Industrial Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction. [mepr-show rules=”58038″]Phone: 520-327-4505[/mepr-show]

INDUSTRIAL – 3761 E. 43^rd PLACE – TUCSON
Pacific Insulation renewed their lease for 10,000-square-feet at 3761 E. 43^rd Place, in Tucson from JDHL Investments.  Pacific Insulation is the Southwest’s leading commercial and industrial insulation distributor/fabricator with locations in Southern California, Northern California, Arizona and Nevada. Russell W. Hall, SIOR, GSCS and Stephen D. Cohen, Principals and Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction and Tim Healy of CBRE represented the tenant. [mepr-show rules=”58038″]Phone: 520-670-1157[/mepr-show]

RETAIL – 3601 E. BROADWAY BLVD. – TUCSON
The Mattress Firm leased 5,000-square-feet at El Con Mall 3601 E. Broadway Blvd. located at the northwest corner of Broadway and Alvernon in Tucson, Arizona.  Darren Pitts, and Michael Clark of Velocity Retail Group represented the Mattress Firm. [mepr-show rules=”58038″]Phone: 303-534-2102[/mepr-show]

OFFICE – 1900 – 1996 N. KOLB – TUCSON
The Thomas R. Brown Family Foundation has leased 4,718-square-feet of office space at Taylor Office Park located at 1990-1996 N. Kolb Rd. in Tucson. CBRE’s Jeff Casper negotiated the 10-year lease on behalf of the landlord, Taylor Kolb LLC. The tenant, who was represented by Bob Davis and Tom Hunt with Rein & Grossoehme, will take occupancy in early March. [mepr-show rules=”58038″]Phone: 520-298-2828 x 6,  Asking rate : $17.00 SF/YR[/mepr-show]

OFFICE – 2115 E. VALENCIA RD. – TUCSON
The National Ecological Observatory Network has leased 3,900-square-feet of office space at Valencia Business Park located at 2115 E. Valencia Rd. in Tucson. The Boulder, Colo.-based NEON, which is designed to gather and synthesize data on the impacts of climate change, land use change and invasive species on natural resources and biodiversity by collecting data from 106 sites across the U.S., will take occupancy in early June. The landlord was Tucson-based Obedin Holdings LLC. CBRE’s Bill Di Vito and Jesse Blum represented both the tenant and landlord in negotiating the lease term. [mepr-show rules=”58038″]Phone: 720-746-4884[/mepr-show]

INDUSTRIAL – 1870 W. PRINCE RD. – TUCSON
MedOne Healthcare, LLC leased 3,622-square-feet at the Exchange Place, 1870 W. Prince Road, Suites 69 – 71 in Tucson from Presson Corporation.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Phone: 520-300-6434,  Approx: $0.54 – $0.68 SF/Gross[/mepr-show]

RETAIL – 5555 E BROADWAY BLVD, TUCSON
Arizona Urgent Care leased a 3,522-square-feet, the west corner end cap at the 5555 Broadway Center Arizona Urgent Care will open in mid-2014.  Arizona Urgent Care was represented by Ken Elmer of Commercial Properties, Inc. Nancy McClure and Michael Laatsch with CBRE’s Tucson office negotiated the lease for the landlord/developer, Benenson Capital Partners of New York City. [mepr-show rules=”58038″]Asking rate: $40 PSF[/mepr-show]

INDUSTRIAL – 2002 N. FORBES BLVD. – TUCSON
Burns Pest Elimination of Tucson has leased 3,516-square-feet of flex/industrial space at 2002 N. Forbes Blvd. CBRE’s Tim Healy and Bob DeLaney negotiated on behalf of the landlord, San Diego, Calif.-based DMIG, LLC. The tenant, who was represented by Jeff Casper with CBRE, will take occupancy March 1st. [mepr-show rules=”58038″]Phone: 520-399-7579,  Asking rate: $9.00 SF/YR[/mepr-show]

RETAIL – 7401 N. LACHOLLA BLVD. – TUCSON
Uptown Cheapskate leased 3,300 sq. ft. at the Foothills Mall 7401 N. LaCholla Blvd., on the northwest corner of Ina and LaCholla Roads in Tucson.  Uptown Cheapskate® is a sister company to KiD to KiD®, an award winning children’s product franchise with stores nationwide. The stores buy, sell, trade and consign new and gently used clothing and accessories at discounted prices.  Uptown Cheapskate caters to the pre-teen and young adult demographic.  This will be the first location for this tenant in Tucson.  Darren Pitts of Velocity Retail Group represented Uptown Cheapskates. The landlord is Schottenstein Property Group. [mepr-show rules=”58038″]Phone: 801-359-0071[/mepr-show]

RETAIL – 9040 VALENCIA RD. – TUCSON
Progressive Animal Wellness Services LLC has leased 3,150 square feet of retail space at Rita Ranch Shopping Center located at 9040 Valencia Rd. in Tucson. CBRE’s David Dutson negotiated on behalf of the landlord, CNA Enterprises, Inc. The tenant, who was represented by Dean Ingram with DeRito Partners, who took occupancy in early January. [mepr-show rules=”58038″]$19.00 – $20.00 SF/YR[/mepr-show]

RETAIL – 5555 E BROADWAY BLVD., TUCSON
Potbelly Sandwich Shop, leased 2,000-square-feet at the 5555 Broadway Center between Urgent Care and Broadway Smiles Dentistry & Orthodontics. Potbelly Sandwich Shop will open in mid-2014. Potbelly was represented by Zach Pace of Phoenix Commercial Advisors. Nancy McClure and Michael Laatsch with CBRE’s Tucson office negotiated the lease for the landlord/developer, Benenson Capital Partners of New York City. [mepr-show rules=”58038″]Asking rate $40 PSF[/mepr-show]

OFFICE – 6601 E. GRANT RD. – TUCSON
United Builders LLC has leased 1,560-square-feet of office space at 6601 E. Grant Rd in Tucson. CBRE’s David Montijo negotiated on behalf of the tenant. The landlord, C2D2 Associates LLC, was self-represented. United Builders took occupancy early January. [mepr-show rules=”58038″]Phone: 520-622-2884[/mepr-show]

OFFICE – 4575 S. PALO VERDE RD. – TUCSON
MPC Design Technologies Arizona, LLC leased 1,300-square-feet at the Butterfield Business Park, 4575 S. Palo Verde Road, Suite 327 in Tucson from Presson Equity Partners, LLP.  Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Phone: 520-202-7814,  $0.50 SF/MO[/mepr-show]

OFFICE – 4500 E. SPEEDWAY – TUCSON
Magnetmod, LLC leased 1,200-square-feet at the Midway Business Park, 4500 E. Speedway Boulevard, Suite 65 in Tucson from Presson Midway, LLC.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Phone: 520-344-0443 , Approx. $0.45 NNN[/mepr-show]

OFFICE – 4500 E. SPEEDWAY – TUCSON
Jungle Partners, LLC leased 1,200-square-feet at the Midway Business Park, at 4500 E. Speedway Boulevard, Suite 35 in Tucson from Presson Midway, LLC.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction.
[mepr-show rules=”58038″]Approx: $0.45 NNN[/mepr-show]

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The following leases were reported to us during the week of January 27-31, 2014 in the Tucson market.

INDUSTRIAL – 1402 S. KOLB – TUCSON
Safelite Auto Glass leased 6,122-square-feet in the freestanding building at 1402 S. Kolb Road in Tucson from Eastpoint South Kolb, LLC.  Greg Furrier, Principal and Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Phone: 877-664-8931 (Corporate)[/mepr-show]

INDUSTRIAL – 4161 E. TENNESSEE ST. – TUCSON
ASL USA, Inc. leased 6,000-square-feet at 4161 E. Tennessee, #339 from Tic Tac Partnership.  Brandon Rodgers, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction. [mepr-show rules=”58038″]Asking rate: $0.50/SF / MO[/mepr-show]

OFFICE – 3501 E. SPEEDWAY BLVD. – TUCSON
Arizona Office Technologies, Inc., leased approximately 4,890-square-feet of office space located at 3501 E. Speedway Blvd., Suite 145, Tucson, Arizona, from Monte V, LLC.  Michael Gross of Tucson Realty & Trust Co. represented the Landlord and Mitch Lundquist & Todd Linde of Jones, Lang, LaSalle, represented the Tenant in the transaction.[mepr-show rules=”58038″] $20. SF / YR[/mepr-show]

INDUSTRIAL / OFFICE 4500 E. SPEEDWAY – TUCSON
Southwest Medical Aid leased 3,520-square-feet at 4500 E Speedway Boulevard, Suites 22-23 in Tucson from Presson Midway, LLC.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking rate Approx. $0.45SF / MO Phone: 520-325-3965[/mepr-show]

INDUSTRIAL – 3895 N. BUSUNESS CENTER DR. – TUCSON
CPE Consultants, LLC, an engineering consulting company, leased 2,932-square-feet at 3895 N. Business Center Drive, Suites 115 in Tucson from NTBC Trust Partners, LLC.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Phone: 520-545-7001[/mepr-show]

OFFICE – 4566 N. 1^st AVE. – TUCSON
Zak Harlow, AFLAC Regional Sales Manager leased 2,569-square-feet at 4566 N. 1st Avenue, Suite 140 in Tucson from J. Michale Haubert.  Rick Kleiner, MBA, Principal and Office Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction.

WAREHOUSE – 2044 E. 14^th ST. – TUCSON
Dawn Brandt leased 2,080-square-feet at 2044 E. 14th Street from Michael & Jeanne Williams.  Brandon Rodgers, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

RETAIL – 3400 E. SPEEDWAY BLVD. – TUCSON
BGC-New Mexico, LLC has leased 1,600-square-feet at 3400 East Speedway Boulevard, Suite 124. The space is located within Rancho Center, which is anchored by Whole Foods. The tenant plans to open Jersey Mike’s Subs in the space. Debbie Heslop, CCIM, of Volk Company Commercial Real Estate represented the Landlord, Rancho Center, LLC. Ben Craney of West Commercial Real Estate Advisors represented the Tenant.

INDUSTRIAL – 3534 – 3538 N. ROMERO RD. – TUCSON
Southern Arizona Maintenance Service, LLC leased 1,500-square-feet at 3534-3538 N. Romero Road, Suite 142 in Tucson from Costa Verde Investments, LLC.  Ron Zimmerman, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

RETAIL – 6510 E. 22^nd ST. – TUCSON
ALAS, LLC leased 1,452-square-feet at 6510 E. 22nd Street in Tucson from Tierra del Sol Commercial Center, LLC.  Aaron LaPrise, Retail Specialist with Cushman & Wakefield | PICOR, handled the transaction.

INDUSTRIAL – 1870 W. PRINCE RD. – TUCSON
Maricopa Water Processing Systems, Inc. leased 1,440-square-feet at 1870 W. Prince Road, Suite 7 in Tucson from Presson Corporation.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Asking rate Approx. $0.59 / SF / MO

RETAIL – 6540 E. 22^nd STREET – TUCSON
Sari-Sari Filipino Market leased 1,278-square-feet at 6540 E. 22nd Street in Tucson from Tierra del Sol Commercial Center, LLC.  Aaron LaPrise, Retail Specialist with Cushman & Wakefield | PICOR, handled the transaction. [mepr-show rules=”58038″]Asking rate: $7. SF / Year[/mepr-show]

INDUSTRIAL / OFFICE – 4500 E. SPEEDWAY BLVD. – TUCSON
SW Institute for Bio-Advancement leased 1,272-square-feet at 4500 E. Speedway Boulevard, Suite 113 in Tucson from Presson Midway, LLC.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking rate Approx. $0.45 /SF MO NNN[/mepr-show]

OFFICE – 3275 W. INA RD. – TUCSON
Jason D. Moyle PLLC leased 1,212-square-feet at 3275 W. Ina, Suite 103 in Tucson from Caldor Investments of Arizona, LLC.  Tom Nieman, Principal and Office Specialist with Cushman & Wakefield | PICOR, represented the landlord and Gary Best with KW Commercial Services represented the tenant in this transaction. [mepr-show rules=”58038″]Phone: 520-861-8109[/mepr-show]

Retail – DOUGLAS, AZ
Russell Cellular, Inc., a Verizon Wireless Premium Retailer, has leased 1,200-square-feet in the Douglas Shopping Center in Douglas, Arizona. Brenna Lacey of Volk Company Commercial Real Estate represented the Tenant. The Landlord is SFP Pool Five Shopping Centers L.P. [mepr-show rules=”58038″]Phone: 417-886-7542 (Corporate)[/mepr-show]

INDUSTRIAL – 4500 E. SPEEDWAY – TUCSON
CQR Holdings, LLC leased 1,067-square-feet at 4500 E. Speedway Boulevard, Suite 6 in Tucson from Presson Midway, LLC.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking rate Approx. $0.41/SF MO NNN[/mepr-show]

INDUSTRIAL – 2121 N. DRAGOON – TUCSON
RCD Demolition leased 1,000-square-feet at 2112 N. Dragoon, #8 from Rich Rodgers Investments, Inc.  Brandon Rodgers, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″] Asking rate Approx. $0.41 / SF MO NNN Phone: 520-448-1665[/mepr-show]

OFFICE – 1200 N. El DORADO PLACE – TUCSON
Human Resource Network, Inc. renewed their lease of 993-square-feet at 1200 N. El Dorado Place, Suite D-140, Building G in Tucson, from El Dorado Ventures, LLC.  Tom Knox, SIOR, Office Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Phone: 520-722-8227[/mepr-show]

RETAIL –  4555 S. PALO VERDE ROAD – TUCSON
Top Notch Barber Shop leased 923-square-feet at 4555 S. Palo Verde Road, Suite 131 in Tucson from Presson Equity Partners, LLP.  Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Phone: 520-790-0609[/mepr-show]

INDUSTRIAL / OFFICE – 4500 E. SPEEDWAY BLVD. – TUCSON
Remilaku Stewart Nash & Tyrone T. Nash leased 800-square-feet at 4500 E. Speedway Boulevard, Suite 85 in Tucson from Presson Midway, LLC.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking rate Approx. $0.41/SF MO  NNN[/mepr-show]

RETAIL – 3045 N. 1^st Ave. – TUCSON
Lillian Vasquez leased 442-square-feet at 3045 N. 1st Avenue, Unit F in Tucson from Foothills Business Ventures, LLC.  Tom Nieman, Principal and Office Specialist and Brandon Rodgers, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord.

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Pat Darcy, Retail Division Head of Tucson Realty & Trust Company is looking forward to 2014 claiming the Tucson Retail Market is steadily improving, similar to its performance last year… with two steps forward and one step back!

There was only one speculative retail center built last year. Steven Mar built a 10,000-square-foot retail building west of the intersection of Ina and Thornydale in Marana, located just in front of Harbor Freight on Ina. People in the retail business thought Mar was a brave man as he started construction last spring without any tenants, but the space was 100% leased before completed by tenants such as R&S Mattress that will take occupancy soon.

“New retail developments near major intersections are very attractive to tenants,” Darcy says.

“The current retail vacancy in Tucson metro area is approximately 8% and there was 800,000-square –feet of net absorption in 2013. Quoted retail lease asking rates are averaging $15.70 per square foot NNN,” Darcy reported.

“In my opinion, there were three reasons for the Tucson market increased retail absorption: first, the small amount of new retail construction in the past two years; second, the redevelopment of central area properties by retails such as Walmart Neighborhood Markets, Walgreens, CVS, Quick Trip and Circle K; and third, the leasing of most of our vacant big boxes to tenants such as Stein Mart, Hobby Lobby, Chuze Fitness, Floor & Décor and Conn’s Home Entertainment,” Darcy explained.

Redevelopment of properties in central Tucson has been a good thing. There was too much outdated retail space in Tucson’s central core and assemblages have taken these older, smaller retail spaces off the market and replaced them with new spaces and stronger retail tenants. A good example is the redevelopment of the old El Mercado Shopping Center at the southwest corner of Broadway and Wilmot. Approximately 40,000-square-feet of obsolete shop space was taken down for a new drug store and pads for new retail development.

Darcy isn’t expecting a lot of new retail development to occur in 2014. Two major centers scheduled to open this year are at Houghton Town Center, anchored by a Super Walmart, and Conn’s Home Entertainment’s 40,000 –square-feet and Guitar Center’s 11,500 –square-feet currently under construction at Marana Marketplace, a Larsen Baker project.

Due to the recession, a major change has occurred in the timing of when anchor tenants such as grocery stores purchase or lease their sites. Before the recession, in order to get the best corners in growth area, supermarket developers would agree to deals by looking at homebuilders’ projections. Now grocery anchors want to see actual rooftops before making a decision. Expect more retail development announced in 2014 and 2015.

Darcy should be reached at (520) 577-7000.