TUCSON (January 31, 2025) -- CBRE reports industrial tenant demand slowed during Q4 2024 in Tucson, as the metro observed 642,835 sq. ft. of gross leasing activity and -49,521 sq. ft. of net absorption in Q4 2024, lifting metro vacancy to 4.7%. Still, despite this increase, the rate remains below the metro’s historical average. Roughly 341,842 sq. ft. of industrial product broke ground during Q4 2024, lifting the total construction pipeline to more than 880,000 sq. ft. Although tenant activity decelerated, the average asking rent registered a 2.4% increase quarter-over-quarter to $0.85 per sq. ft. NNN.
The average asking rent was roughly $0.08 higher than the average recorded over the past 4 years.
- Vacancy increased 10 basis points (bps) quarter-over-quarter to 4.7% in Q4 2024.
- Net absorption dipped in negative territory for the first time since Q2 2023, as roughly 49,521 sq. ft. of vacant space was added back to the market.
- Development activity increased, with a total of 881,472 sq. ft. of space under construction exiting Q4 2024.
CBRE tracked 9.5 million sq. ft. of tenants in the market at the end of the fourth quarter.
See full report here: PowerPoint Presentation