The User Industrial Market Strengthens In Tucson

Tucson's owner occupied market, also known as "user buildings" is as strong as it's ever been. A lack of inventory combined with strong demand from business owner's wanting to own their own real estate has continued to strengthen the industrial/warehouse user market.

With construction costs for industrial above $200 per square foot and very few sub 10 acre industrial parcels available, buyers are still flocking to existing buildings rather than taking the leap and building ground up. Most user buyers are looking for fenced yards in addition to a building to store materials or fleets as they are having difficulty finding buildings with fenced yards for lease.

We are seeing most user buyers pay cash and often seeing buildings on the market for less than a few weeks and often with multiple buyers. Another factor affecting the user market is the re-development of existing buildings such as the new Casino at Grant & I-10 and the new interchange at Country club and I-10. There is more demolition than construction of industrial buildings in 2024. We expect more construction in 2025 but for multi-tenant, for lease industrial buildings with bays more than 10,000-20,000 SF.

The building above was just sold for $1,7250,000 to Ninyo and Moore Engineering. Max Fisher, BRD Realty represented the buyer and Tim Healy, CBRE represented the seller.