Q4 2017 ended with 4,382 sq. ft. of positive net absorption, up from (50,272) sq. ft. of negative net absorption recorded in the previous quarter.
Vacancy in the Tucson retail market declined slightly by 10 basis points (bps) quarter-over-quarter to 7.2% in Q4 2017. On an annual basis, this represents a 10 bps decrease.
Year-over-year, vacancy declined in only two of the six submarkets. Vacancy fell 260 bps in the Northeast submarket to 7.7%.
In Q4 2017, the marketwide average asking lease rate dropped slightly quarter-over-quarter to $15.70 triple net (NNN) per sq. ft.
There was one new retail delivery to the Tucson market in Q4 2017, the BTS for Ross Dress for Less in the Houghton Town Center.
One project totaling 55,000 sq. ft. is currently underway in the Southwest submarket. The Landing (formerly “Fashion Park”) continues construction on Phase I of the master planned development located on Irvington Road west of I-19.