Another market on our radar is Tucson. Many economic indicators especially job and population growth point to Tucson as a market in position for sustained growth. Tucson typically lags Phoenix and is positioned to continue the growth seen in the southwest over the last year. We see Tucson as a strong rental market for the foreseeable future
Colliers international talks about the outlook for Tucson in a short article and First Quarter 2017 multifamily report they recently released…Both of these links are on this post
(The below is an excerpt of an article published online by Colliers International regarding the Tucson Multifamily market outlook, The link to the full article is lower down)
“Tucson Multifamily Market Starts the Year Strong”
Vacancies Tightened and Rents Rose as Construction Slowed
Phoenix, May 8, 2017 – The Tucson multifamily market experienced an upswing in the first quarter of 2017, marked by tightening vacancy and rising rental rates. To view the full Colliers International report the link below.
Apartment vacancy fell 40 basis points in the first quarter, reaching 6.5 percent. The strong Tucson market has had below seven-percent vacancy for each of the past five quarters. The latest drop put the vacancy 30 basis points lower than one year ago and it is the second-lowest vacancy rate recorded in metro Tucson in the past 10 years. Northern portions of Tucson are experiencing some of the lowest vacancies. Northwest Tucson, Catalina Foothills and Northeast Tucson submarkets are all in the low to mid-five percent range.
The outlook for the Tucson multifamily market only gets better. After a few years of modest new construction, supply-side pressures will ease during 2017. Demand is forecast to strengthen, especially following recent employment announcements from Raytheon, Caterpillar and ADP. The leisure and hospitality sector has been posting above-average job growth, adding more than 3,000 jobs in the past year. Workers in this industry tend to favor rental housing, so those expansions are great news for the multifamily sector. The Tucson investment market is strengthening as the underlying property performance trend improves. Vacancy is near an all-time low and rents are trending higher. The cap rate compression felt recently in surrounding primary and secondary markets could drive investors to markets like Tucson in their quest for better yields.
– End –
The below is the above full article:
The Below quarterly report goes into depth regarding market conditions that are favorable for the area…. This a very comprehensive report of the area.
Here is the Colliers first quarter for 2017 multifamily report:
Let’s have a conversation about Tucson or one of our other markets we are active in. We can be reached at 510-863-1447 or through our website at:
No comments yet.