TUCSON—Tucson's third quarter office numbers continue to be amixed bag. GlobeSt.com speaks with BuzzIsaacson, CBRE first vice president, toget his take on the numbers.

The third quarter produced the office market's first negativenet absorption in three quarters, with negative 79,284 square feet.This reduces the year-to-date total positive absorption to 20,944square feet. The Q3 2014 average asking rate on a full servicebasis for tracked office product in the Tucson market was recordedat $19.47 per square foot per year, up $0.19 from Q2 2014, whichwas $19.28. As a comparison, the Q3 2013 rate was recorded at$19.35, which is in between the Q2 2014 and Q3 2014rates. With limited new tenants in the market and ampleavailable space, the Tucson office market has seen many existingtenants take the opportunity to upgrade their offices. Conversely,with insufficient new tenant activities, landlords have beenmotivated to move space, and have offered lower rates and/orconcessions in high quality vacant space.

GlobeSt.com: What do you think is the reasonfor the negative absorption?

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.