May felt like a solid bounce back but I'm feeling a slow down again since the last round of shut down orders.
I have seen a noticeable increase in small to mid sized businesses moving to Tucson from California, New York and Oregon. Tucson continues to be a migration point.
Got a call today from a new business owner that is taking over the business he has worked for for years. The former business owner just killed himself because he had no more business and the debt was too much.
Industrial businesses that serve downtown and retail are hurting.
Retail tenants continue to choose to close up shop for good, especially restaurant and bar related businesses.
Industrial continue to stay steady due to the housing market, distribution, the defense industry, and mining industry.
Defense contracts seem to stay steady, supporting the Tucson manufacturing market.
Non defense related aerospace businesses are hurting. A friend of mine that works at an aerospace company in Mesa told me they just laid if 50% of their staff.
Mining continues to grow. Recent land acquisitions that are mining related have mostly been in Gila County and Cochise County. Mining exploration is growing quickly throughout Arizona.
The residential market continues to stay steady.
Drive through retail seems to prosper during COVID times.
Office seems pretty slow as at home work continues.
Downtown seems like a ghost town nowadays with new rumors every day about different businesses closing down.
The Tucson optics industry seems to be growing quickly. Think autonomous vehicles, medical imaging, AI (scanning, inventory, etc).
Businesses that are adapting are prospering, sometimes doing better than they were pre-covid, think Instakart, DoorDash, etc.
Investors keep asking me if I have any distressed deals out there and the reality is that there really aren't any. I would expect to see investor opportunities in the next 6-12 months as the waves will most likely crash after months of working to survive the shut downs. I think we will really feel the negative impacts of this economy in 6-12 months.