Tucson Industrial Market Update Q3 2013
Industrial vacancy in the Tucson market declined to 10.8% in the third quarter of 2013 with a net absorption of 219,802 SF, according to CoStar Group. At the same time, the average rental rate in the market increased for the quarter, up to $6.27.
There were several leases and sales last quarter that provided an overall increase in absorption for the year thus far. These are just a few transactions that occurred during the third quarter:
- Growers House LLC leased 15,387 SF and PGW Auto Glass leased 11,440 SF.
- The University of Arizona Health Plans leased 14,820 SF at 2705 E Medina.
- MSC Distributing Inc leased 9,000 SF at 1603 W Grant Rd.
- Tucson Industrial Realty LLC completed the sale of a 15,000 SF building at 602 W Rillito to an LLC headed by William Ebert. The purchase price was $375,000.00.
- We also completed the sale of an investment building at 2665 N Flowing Wells for $650,000.00. The building was approximately 28,000 SF and occupied by R. Wales and Son at the time of the sale.
The market remains sluggish for 2013 but activity picked up slightly during September and October. The overall vacancy rate should continue to decline slightly as 2014 approaches.