The demand for sub-20,000 square foot warehousing in Southern Arizona is high and is expected to continue to grow in the coming years with population growth and Arizona's Boom on the rise. This is due to a number of factors, including:
Growth of e-commerce: E-commerce businesses need warehouse space to store their inventory and fulfill orders. Southern Arizona is a desirable location for e-commerce businesses because of its central location in the western United States and its proximity to the I-10, Rail access, being 60 miles from Mexico, Port of Tucson right around the corner, and transportation hubs.
Growth of the manufacturing sector: The manufacturing sector is growing in Southern Arizona, and manufacturers need warehouses and more space to store their raw materials and finished goods & products. High tech manufacturing continues to move to the area including Aerospace, optical science, and renewable energy companies, along with EV manufacturers, and Battery manufacturers moving to the area .
Growth of the population: Southern Arizona is growing, and this is leading to increased demand for consumer goods and services. This is driving demand for warehouse space to store and distribute these goods and services.
According to a recent study by Cushman & Wakefield, the vacancy rate for sub-20,000 square foot warehouses in Southern Arizona is just 2.5%. This is significantly lower than the national average vacancy rate of 4.5%. The study also found that the average rent for sub-20,000 square foot warehouses in Southern Arizona is $0.80 per square foot per month. This is higher than the national average rent of $0.75 per square foot per month.
The high demand for sub-20,000 square foot warehousing in Southern Arizona is creating a favorable environment for developers and investors. There is a shortage of available warehouse space in this size range, and this is driving up rents and values. As a result, developers are building new sub-20,000 square foot warehouses, and investors are buying these warehouses.
If you are a business owner who is looking for warehouse space in Southern Arizona, it is important to work with a qualified commercial real estate broker, Cushman Wakefield | PICOR handles 70% of the buying, selling, and leasing of commercial real estate in Sothern Arizona and has specialized brokers to meet your needs. We can help you find the right warehouse space for your needs and negotiate the best possible lease terms. Give me a call at 520-360-8510 for more information on current trends and news or if you need help buying, selling, leasing, or moving to Tucson.
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