1.13 acre industrial parcel fully fenced and paved in the highly sought after Northwest market now for sale.

-Less than 1 mile to I-10
-Industrial zoning, City of Tucson
-3 phase power
-Extra covered area with two shipping containers included

2023 W Price St Tucson AZ 85705

In most markets throughout the US, industrial vacancy is on the rise but it’s important to understand which part of the market vacancy is rising in. Over the past 5 years during this development boom, the vast majority of industrial was built in the large bay markets, 100,000 SF+ bays. In markets that don’t have excess land to build, for example port markets, not as much product has been built. With markets that can keep expanding into the suburbs, more and more concrete tilt warehousing has been built.

Unfortunately the small-medium bay market has been left out despite massive persisting demand for small-medium bay warehouses. Vacancy for small-medium bay has actually decreased in most markets despite overall vacancy increasing. Lease rates for this mid range warehousing have also increased along with user sale prices.

As vacancy for small-medium bay remains historically low, users buy land and build because why buy an existing warehouse for $180 per square foot when you can build exactly what you need for $200-300 per square foot?

While some markets have increased vacancy, the vast majority of that vacancy is with big bay. The Tucson industrial market as a whole remains under-built and under-supplied.

​April’s CPI and PPI both rose for the second straight month. Currently, 3.5% CPI is above the fed’s target and the markets aren’t pricing in the rate cuts that were expected over the past 6 months. The ten year treasury ended 2023 below 4% and after the last CPI report, the ten year is now above 4.5%. Expect investment sales volumes to remain similar to those of 2023.

Here’s the good news, with inflation on the rise again, we can expect the Tucson industrial market to remain strong and lease rates to continue to increase. 2024 could be the year where we see more industrial buildings get demolished, than delivered. Meanwhile, demand remains strong throughout the industrial market.

The sticky part of inflation for Tucson is with construction. Many developers have put their plans to build on hold, not because of interest rates or lack of tenant demand, but mostly due to the rise in construction costs. Last month a Tucson residential subcontractor who does lots of work for the national homebuilders told me that they just had their biggest month in terms of new unit contracts, almost doubling their March 2023 volume. The subs are still busy and despite industrial construction slowing, construction costs remain elevated mostly due to the increase in residential construction and lack of skilled trades labor.

With most recent projects, I’ve seen construction costs increase for smaller warehouses (30,000 SF and below) and costs come down just a little bit with bigger bay, concrete tilt construction. While materials have come down in pricing, labor costs continue to rise. 

Former manufacturing/fabrication building with a fenced yard for outdoor storage along with 1,200 amp 480V service now available. 

4261 S Country Club

• 1 mile to I-10
• 3 phase power
• 1,200 amp 480V power
• Grade loading
• 12’x15’ roll up door
• 10 roll up doors
• 12 offices
​• CI-2 – County heavy industrial zoning

​Listed by Max Fisher, BRD Realty

Click below to download the PDF brochure

​Max Fisher, BRD Realty, Sam Devouris & David Kimball, NAI Capital represented Piteau, a subsidiary of Tetratech (currently a 10B+ market cap) in the leasing of 13,000 SF at 7051 N Camino Martin. Formerly Bedroxx Bowling, Larsen Baker converted the building to four industrial bays. Piteau leased the Northeast bay. 

This lease is a testament to the strong industrial market, pushing lease rates north of $1.00 NNN. As vacancy continues to decline and lease rates increase, construction should pick up 2024-2025. The former Bedroxx bowling alley conversion is also an Opportunity Zone project. Isaac Figueroa and Elaina Elliott represented the Landlord, Larsen Baker. ​