TUCSON, AZ (Sept. 21, 2026) — Tucson lease report recorded transactions totaling 22,063 square feet during the week of Sept. 14–18. Industrial activity led by transaction count with six leases totaling 9,125 square feet, while retail tenants accounted for four leases totaling 7,984 square feet. The week’s largest transaction was AZ AANHPI Advocates’ lease of 4,072 square feet of office space on West Ajo Way, followed by Celebrate Dental & Braces’ 3,231-square-foot lease at Tucson Place Shopping Center.

NEW LEASES

OFFICE — 301 W. AJO WAY, TUCSON, 85713 | SOUTH
AZ AANHPI Advocates leased 4,072 square feet of office space from N&R Capital Ventures, LLC. Rob Tomlinson, principal and retail specialist with Cushman & Wakefield | PICOR, represented the landlord.

RETAIL — 301 E. WETMORE RD., SUITES G-101 AND G-103, TUCSON, 85705 | CENTRAL
Celebrate Dental & Braces leased 3,231 square feet at Tucson Place Shopping Center. The space will be used as a dental and orthodontic office. Isaac Figueroa, CCIM, SIOR, with Larsen Baker represented the landlord. Shawn Allard with CARR represented the tenant.

RETAIL — 745 N. FOURTH AVE., TUCSON, 85705 | CENTRAL
1989 Bake House LLC leased 2,521 square feet of retail space from Western American Investments, LLC. Rob Tomlinson, principal and retail specialist with Cushman & Wakefield | PICOR, represented both parties.

INDUSTRIAL — 3860 S. PALO VERDE RD., SUITE 314, TUCSON, 85714 | SOUTH
Pioneer Equipment, Inc. leased 2,330 square feet of industrial space at Palo Verde Business Center from Pegasus Tucson Owner LLC. Paul Hooker, SIOR, principal, and Andrew Keim, industrial specialist with Cushman & Wakefield | PICOR, represented the landlord.

INDUSTRIAL — 3819 S. EVANS BLVD., SUITES 304 AND 305, TUCSON, 85714 | SOUTH
Velociti Services leased 1,802 square feet of industrial space at Ajo/Evans Business Park from FJM Merced Associates, LP. Andrew Keim, industrial specialist, and Kameron Norwood, investment sales and leasing specialist with Cushman & Wakefield | PICOR, represented the landlord.

INDUSTRIAL — 3240 S. DODGE BLVD., SUITE 9, TUCSON, 85713 | SOUTH
Desert Fun Foods, LLC leased 1,400 square feet of industrial space at South Dodge Business Center from Pegasus Tucson Owner LLC. Paul Hooker, SIOR, principal, and Andrew Keim, industrial specialist with Cushman & Wakefield | PICOR, represented the landlord.

RETAIL — 60 N. HARRISON RD., SUITE A140, TUCSON, 85710 | EAST
Nimbus Cards & Games LLC leased 1,300 square feet of retail space at Broadway Albertsons Center from Dave Grabbert Ranch Inc. Greg Furrier and Rob Tomlinson with Cushman & Wakefield | PICOR represented both parties.

INDUSTRIAL — 3220 S. DODGE BLVD., SUITE 3, TUCSON, 85713 | SOUTH
Nomo Pest Solutions leased 1,200 square feet of industrial space at South Dodge Business Center from Pegasus Tucson Owner LLC. Paul Hooker, SIOR, principal, and Andrew Keim, industrial specialist with Cushman & Wakefield | PICOR, represented the landlord.

INDUSTRIAL — 4500 E. SPEEDWAY BLVD., SUITE 57, TUCSON, 85712 | EAST
Watertime, Inc. leased 1,200 square feet of industrial space at Midway Business Park from Pegasus Tucson Owner LLC. Paul Hooker, SIOR, principal, and Andrew Keim, industrial specialist with Cushman & Wakefield | PICOR, represented the landlord.

INDUSTRIAL — 4903 E. 29TH ST., TUCSON, 85711 | NORTHEAST
Meso1 LLC leased 1,193 square feet of industrial space at Town Central Business Park from Pegasus Tucson Owner LLC. Paul Hooker, SIOR, principal, and Andrew Keim, industrial specialist with Cushman & Wakefield | PICOR, represented the landlord.

RETAIL — 549 N. FOURTH AVE., TUCSON, 85705 | CENTRAL
AC Studio LLC leased 932 square feet of retail space from Western American Investments, LLC. Rob Tomlinson, principal and retail specialist with Cushman & Wakefield | PICOR, represented the landlord.

OFFICE — 1955 W. GRANT RD., SUITE 118, TUCSON, 85745 | WEST
Los Cascabeles Explorer Mining LLC leased 882 square feet of office space from WestGrant Investors, LLC. Molly Mary Gilbert, CCIM, office specialist with Cushman & Wakefield | PICOR, represented the landlord.

Submit sales and leases to [email protected]

PHOENIX, ARIZONA (Sept. 21, 2026) — The new owner of the Phoenix office tower portion of 333 N. Central Avenue in downtown Phoenix has secured a $44.5 million loan to renovate and reposition the property for a broader mix of tenants.

The 26-story tower was built in 2010 and served for years as the headquarters of mining giant Freeport-McMoRan, which occupied eight floors totaling approximately 250,000 square feet. The company began vacating its space during the COVID-19 pandemic and formally terminated its lease in May, according to Maricopa County records.

The lower portion of the building contains the 242-room Westin Phoenix Downtown hotel and was not included in the office sale.

Phoenix-based real estate investment firm Formation 8 LLC acquired the upper portion of the tower from Peakstone Realty Trust in December 2025. The sale price was not disclosed, although the buyer obtained an $18 million loan at the time of acquisition. That loan was scheduled to mature Sept. 1, 2026, one day before the new financing was recorded.

Formation 8 plans to reposition the former single-user office space to accommodate multiple tenants. Renovations will focus primarily on build-to-suit improvements for incoming occupants, along with new amenities intended to make the property more competitive.

The project will also include removing the Freeport-McMoRan signage from the tower. The signage could eventually be replaced by branding for a future marquee tenant.

Newmark is leading leasing efforts and is actively marketing the available office space.

Hilco Global, a subsidiary of ORIX Corporation USA, provided the $44.5 million loan. The financing will support leasing costs, tenant improvements and the addition of new amenities. New York-based Sterling Realty Capital served as debt placement agent and financing adviser to Formation 8.

Formation 8 is also repositioning the former Sheraton Crescent Hotel near Interstate 17 and the former Metrocenter mall. The firm acquired the long-vacant property for $9.25 million in March. Its development group plans to invest approximately $400 million to convert the property into 1,786 apartment units.

TUCSON, AZ (Sept. 21, 2026) – The Office Trends issue of Trend Report is out this morning and from the looks of it, office isn’t coming back – it’s being remade. The office market is not returning to what it was before the pandemic. It is being remade.

After several difficult years, the numbers are finally moving in a more encouraging direction. National office demand has posted nine consecutive quarters of positive absorption, vacancies are declining, and both Tucson and Phoenix recorded improving conditions during the second quarter. Yet the recovery is not reaching every building equally.

Tenants are choosing quality, location and experience. Newer and well-maintained properties are capturing most of the demand, while older buildings without modern amenities continue to struggle. As Dave Volk explains in this issue, a traditional Class A designation is no longer enough. Buildings must continually reinvest to remain competitive, and even an older property can become a trophy asset when it offers the environment tenants now want.

Our cover story on 5151 E. Broadway illustrates that point particularly well. Tucson’s tallest office building outside downtown has maintained its position in the market by creating more than a place to work. Its tenants describe a community built around convenience, relationships and the small touches that make employees want to come to the office.

At the same time, the supply of office space is shrinking. Very little new construction is underway, while obsolete buildings are being demolished or converted to apartments, hotels, industrial uses and other purposes. The planned transformation of a Phoenix office tower into a 340-room JW Marriott is one example of how properties that no longer work as offices can begin a productive new chapter.

The reports throughout this issue point to the same conclusion. The office sector is recovering, but it is also becoming more selective. The strongest buildings are commanding higher rents and attracting tenants, while outdated properties face difficult decisions about renovation, conversion or redevelopment.

That divide will create challenges, but it will also create opportunities. The office market may be smaller than it once was, but the space that survives will be better suited to how companies and employees want to work today.

Special thanks to Cathy Jahnke for taking us inside the culture and community of 5151 E. Broadway, and to Dave Volk for placing Tucson’s changing office market within the larger national recovery. Ajay Madhvani returns with an updated comparison of Tucson, Albuquerque and El Paso, while Scott Whipple examines how professional communication continues to shape the modern workplace. We also appreciate the market research provided by PICOR, CBRE, Cushman & Wakefield and Colliers.

Thank you as well to our production team—Patti van Leer, Michael Rossmann and Jack Paddock—for their consistent support and meticulous attention to detail.

Looking ahead, you won’t want to miss our November issue exploring Development & Infrastructure Trends! As always, we welcome your feedback, ideas and contributions. Visit TrendReportAZ.com and click “Connect” to get in touch.

Karen M. Schutte
Managing Editor, TREND report