In Q4 2017, Tucson’s marketwide vacancy rate decreased 10 bps quarter-over-quarter to 8.1%. On a year-over-year basis, vacancy fell 20 bps.
Quarter-over-quarter, the average asking lease rose to $0.50 NNN per sq. ft. Year-over-year, average rent increased by 6.4% marketwide.
No new space came online during the fourth quarter of 2017. Additionally, two projects are still underway. The Port of Tucson, a 238,734 sq. ft. rail-served warehouse, in the Southeast submarket is anticipated to deliver in early 2018. Additionally, Switchgear Solutions is building a 19,033 sq. ft. Class B warehouse facility in the Northwest submarket.