The Tucson industrial market has turned a corner this summer, and the data on the ground backs it up. After a stretch where vacancy climbed and speculative product sat longer than landlords wanted, we're now seeing less vacancy. Vacancy has come down somewhere between half a percent and a full percent over the past couple of quarters, and every category of the market is telling a version of the same story: demand is catching up to supply, not at a rapid pace, but it is catching up.

Spec space is finally leasing up
The class A speculative buildings that delivered over the past 18-24 months were a slow burn, but that's changing. Absorption in the big-bay spec product has picked up. This is the healthiest sign in the market right now it means the supply that came online during the 2024-2025 development wave is finally being absorbed rather than stacking up as shadow vacancy.
IOS demand remains the strongest segment in the market, full stop
I've said it before and I'll keep saying it: industrial outdoor storage is the tightest product type in Tucson. Contractors who need outdoor storage to store fleets, equipment and materials and the biggest demand driver, followed by ancillary mining companies and automotive related businesses. Warehouses with oversized doors, at least an acre, and close to I-10 are the most sought after properties with industrial outdoor storage. 
Sale listings are scarce and it's pushing prices higher
If you're an owner sitting on a well-located industrial building right now, you have leverage. Inventory for sale is thin across almost every size range, and the buyers who are active local operators, local investors and funds are competing for a shrinking pool of listings. Even bigger buildings like the Copenhagen building in Butterfield, Flint 400,000 SF+ building at Tangerine & I-10, and former Sam Levitz building on 36th St have sold to users in the flooring, defense and steel industry recently. That imbalance is doing what imbalances do: pushing pricing higher even as the broader capital markets environment stays cautious. 

 

BRD Realty is pleased to announce the sale of 3200 W Diamond St, a 5,920-square-foot contractor yard property in Tucson's Northwest submarket, for $1,450,000. The property sold from Escalante Concrete to IOS Southwest. Max Fisher, Industrial Properties specialist with BRD Realty handled the transaction. 

The .98-acre property features twin 2,960-square-foot shop buildings built in 1999, each with 14-foot clear heights and grade-level roll-up doors, along with a large concrete-paved yard zoned I-1 by the City of Tucson that permits outdoor storage. Located near Ruthrauff Road and Interstate 10, the site offers quick truck access to the freeway and sits adjacent to United Rentals and Big Tex Trailers, a rare industrial offering in a tightly held Northwest Tucson submarket.

Max Fisher, BRD Realty is now marketing the property for lease (brochure below).

About the Property
3200 W Diamond St, Tucson, AZ 85743
- 5,920 SF across twin shop buildings (built 1999)
- .98 acres, I-1 zoning, outdoor storage permitted
- 14' clear height, grade-level roll-up doors
- Located at Ruthrauff & I-10

BRD Realty specializes in industrial, warehouse, flex/R&D, and manufacturing real estate across Tucson and Southern Arizona.


Max Fisher, Industrial Properties
BRD Realty
520-465-9989 | [email protected] | industrialtucson.com