TUCSON, AZ (June 23, 2025) -- At the midpoint of 2025, Arizona’s real estate market offers a revealing blend of signals—some bullish, others cautionary, all worth tracking. The July edition of the Trend Report takes a data-driven approach, providing a comprehensive mid-year overview of the trends, transactions, and turning points shaping Southern Arizona and the broader region.
This issue opens with Steve Cole’s macroeconomic perspective in Which Way Markets?, where he unpacks key national and regional shifts in investment sentiment, interest rate dynamics, and economic outlook. From there, the spotlight turns local—exploring Tucson’s multifamily, office, industrial, housing, and retail sectors through the eyes of industry professionals who live it every day.
From there, we dive into Tucson’s commercial and residential performance with a series of sector-specific updates. Hamid Panahi and Clint Wadlund examine the 80+ unit multifamily market, where new deliveries have already outpaced 2024’s total—highlighting sustained momentum despite a slowdown in permitting. Molly Gilbert’s “Suite Stats” explores Tucson’s evolving office market, where tenants continue to prioritize flexibility, amenities, and adaptive reuse.
On the housing front, John Carroll delivers a balanced take on inventory, affordability, and buyer behavior—factors now shifting as interest rate clarity returns. Jon Spur follows with a mortgage finance update that looks at how lenders and borrowers are adapting to the new normal.
Tim Healy and CBRE Research turn their attention to aging warehouse inventory—a defining issue for the region’s industrial landscape. Their article highlights the growing opportunity for repositioning older bulk space to meet the demands of modern occupiers.
In retail, Rob Tomlinson brings a broker’s view to tenant demand, site selection, and the hybrid models shaping 2025 leasing trends. His insights shed light on how consumer patterns continue to evolve post-pandemic.
Zooming out, Delaney O’Kray-Murphy’s “Ranking the States” piece adds a broader socioeconomic dimension. She analyzes where Arizona stands nationally across key standard-of-living measures—from income and healthcare to education and affordability. It’s a timely reminder that real estate performance is deeply tied to the quality of life.
This issue also features May’s top commercial sales, leasing velocity through Q2, and pipeline updates for industrial, retail, and multifamily development. From Cochise County, Robert Carreira reports on expanding sales across multiple industries, underscoring the region’s resilience in Southern Arizona.
As a playful nod to this month’s theme, we pulled together a few favorite numbers from our regular contributors—figures that marked turning points, confirmed trends, or simply stood out. These picks offer a personal lens on the metrics shaping 2025 and remind us that behind every data point is a story worth watching. Of course, data isn’t just about looking back—it’s about seeing what’s ahead. This mid-year edition is packed with numbers, yes—but more importantly, it’s filled with insight. We hope it helps you think strategically, act decisively, and navigate the second half of 2025 with clarity and confidence.
I extend my sincere thanks to all our contributors. Your time, expertise, and perspective continue to make Trend Report a trusted voice in the community.
Packed with insight and backed by real-world expertise, this mid-year edition helps readers see where we are—and where we’re headed—as we enter the second half of 2025.
Special thanks to our editorial team—Patti vanLeer, Michael Rossmann, and Jack Paddock—for your creativity and precision in bringing each issue to life.
Looking ahead, don’t miss our upcoming “August Hospitality & Tourism” issue, where we’ll spotlight the trends, transactions, and milestones that have shaped the sector in 2025.
If you’d like to read a complimentary copy of this 60-page mid-year edition, we invite you to connect with us at TrendReportAZ.com. Just click the Connect tab and let us know—our team will be happy to share a digital copy with you.
Sharpen Your Edge with Actionable Insight!
Karen Schutte, Managing Editor