More than 100,000 square feet of industrial space has recently been absorbed in the Tucson market, led by companies in the mining, distribution and defense sectors and their respective suppliers.
Vacancy rates for properties that can support warehouse or manufacturing operations has dropped to historic lows — about 5.1%, according to the Cushman & Wakefield Marketbeat.
“Tucson is experiencing a plateau effect in the industrial sector in that the dynamic run-up in absorption slowed as the market leveled off at a highly occupied equilibrium,” the report says. “Accordingly, this plateau resulted in a slow-down in leasing activity as few options remained available to lease and, in many cases, companies operate existing facilities out of necessity rather than desire.”
Due to the low vacancies rents are on the rise. The report predicts that if vacancies continue to dip the market could see new speculative construction as big companies prompt smaller vendors and suppliers to set up shop nearby.
Recent industrial deals include:
Espinosa Garnica LLC bought a 59,500-square-foot industrial building at 3350 E. Mossman Road, 3355 E. Bilby Road and 6060 S. Brosius Ave
- . from Palo Verde II LLC for $2 million. Stephen D. Cohen, Russell W. Hall and Robert C. Glaser, with Picor, represented the seller and Picor’s Max Fisher represented the buyer.
- American Manufacturing Excellence LLC bought a 17,500-square-foot industrial building at
- from DIS Properties LLC for $635,000. Ryan McGregor and Ron Zimmerman, with Picor, represented the seller and Alan Moore, with Chapman Lindsey Commercial Real Estate Services LLC, represented the buyer.
MJ Equity Investments LLC and BD Equity Investments LLC bought two industrial properties totaling 15,307 square feet of warehouse space at 3421 and 3435 E. 44th St
- . from Lhost Business Property LLC for $625,000. Picor’s Paul Hooker and Brandon Rodgers handled the sale.
Tin Cup Properties LLC bought 4,099 square feet of industrial space at 2819 W. Ruthrauff Road and 4761 N. Highway Drive
- from Atlas Holdings Three LLC for $217,065. Russell W. Hall, Stephen D. Cohen and Ron Zimmerman, with Picor, brokered the sale.
From the Mines LLC subleased 6,000 square feet of industrial space in the Park Avenue Industrial Center, 750 E. Ohio St., from Stevens Equipment Supply LLC. Robert C. Glaser, with Picor, represented the landlord and Michael Cortez, with Commercial Real Estate Group of Tucson LLC, represented the tenant.
Arizona Partsmaster Inc. leased 2,625 square feet of industrial space in the Park Avenue Industrial Center, 4700 S. Park Ave.
- , from Ohio Street Building No. 2 Ltd. LLP. Picor’s Robert C. Glaser handled the transaction.
Glass Unlimited Inc. leased 1,500 square feet of industrial space at 3538 N. Romero Road
- from Costa Verde Investments LLC. Ron Zimmerman, with Picor, represented the landlord.
Time-Maid LLC leased 1,440 square feet of industrial space in Exchange Place, 1870 W. Prince Road
- , from Presson Corp. Robert C. Glaser and Max Fisher, with Picor, handled the transaction.
- AZ Budget Flooring LLC leased 1,390 square feet of industrial space at
- from RRL Inc. Picor’s Max Fisher handled the lease.
