January 29, 2016

Tucson Commercial Real Estate Inches Up Again in 2015

Local market continues its slow, steady recovery from lows of Great Recession

Commercial-office stock photo
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Commercial real estate in Tucson showed incremental improvement in 2015, according to Tucson Realty and Trust Company's year-end report.

Many sectors showed continued improvements, though none made large leaps forward.

“Industrial hit 10-year lows in vacancy, retail continues to get better, office has improved as well in its vacancy rate, and we’re starting to see market rents go up a little bit,” said President and CEO Hank Amos.

Company experts cite a lack of new building and aging inventory as a problem slowing down many of the sectors in local commercial real estate.

One bright area is a recent increase in activity in the retail sector. Urban infill is taking place in that market, and a big factor is the willingness of developers to raze older buildings and construct something new in their place.

Tucson Realty and Trust Company experts said this year should see an even larger improvement in the commercial real estate market than 2015 brought, though they were quick to offer a caveat. If low oil prices or a shaky Chinese economy causes larger issues in the global economy, 2016 probably won't be such a positive year.

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