Tucson Retail Market Report

Select vintage gains attention. Tucson’s quarterly net absorption reached nearly 500,000 square feet in the second quarter, the highest three-month total since 2008. After a weak first quarter, the improvement was driven mainly by single-tenant properties built after 1979. While post-2000 stock remains sought after by tenants, limited speculative openings and near-4 percent vacancy may be shifting demand toward 1980-2000 vintage spaces. These buildings accounted for a larger share of absorption in recent quarters. Meanwhile, pre-1980 space saw only slight relief after six consecutive quarters of net relinquishment.