Economic Overview: Arizona job growth outpaced the national rate as the state continued to recover. Statewide improvement in job gains will have a positive effect on all Arizona markets. Forbes magazine and Moody’s Analytics, projects Arizona with a 3% job growth over the next five years with annual economic growth of 4.6%. That puts Arizona just ahead of Texas in the job rankings and No. 1 nationally for projected job and economic growth. The housing recovery statewide positively impacted construction jobs in both Phoenix and Tucson, with the volume of building permits strengthening. Conventional lending is recovering, and inventory remained below the balance point at 3.5 months, while finished lot supply is scarce.
Tucson Retail Update: The positive market trend continued for a sixth consecutive quarter, with another 206,176 square-feet of absorption bringing the year’s total to nearly 500,000 square-feet. With junior anchor space in limited supply, competition for these locations was a driver for activity… Read more in the Q3 Retail MarketBeat >>
Tucson Multifamily Update: Operating fundamentals continued to slowly improve in Tucson with modest decreases in vacancy, positive net absorption, a small increase in rental rates and some continued decline in rental concessions… Read more in the Q3 Multifamily MarketBeat >>
Tucson Industrial Update: Occupancy gains of 213,087 square-feet marked the fourth consecutive quarter of positive absorption. Improved demand decreased the vacancy 0.6% to 10.8%, a level not achieved since Q2 ‘09… Read more in the Q3 Industrial MarketBeat >>
Tucson Office Update: Marketwide vacancy slipped slightly to 12.3% from the second quarter to third and remained stubbornly in the same range for three full years. The East and Northwest submarkets suffered the highest vacancy… Read more in the Q3 Office MarketBeat >>