Tucson’s real estate market had another high performing quarter, continuing its hot streak. This has been fueled by the historically high demand for property in town right now. Buyers are snatching up every property they can get and for good reason. Cap rates are slowly starting to rise and will increase in the future; especially in the downtown/university area.
The demand to live in multifamily properties has also never been higher, due to the preferences of millennials and young people who are interested in a different lifestyle than past generations. Less and less young people are buying homes early and instead prefer the convenience and amenities that come with a more urban experience. This provides a profitable and safe opportunity for investors. Record high demand has caused a spike in rents around Tucson with some even doubling.
Arizona ranks thirteen out of fifty states in terms of job growth, a significant amount of that coming from Tucson. Times are changing in the Tucson job market. This is due to the influx of jobs we have seen in the last couple of years. For example, Caterpillar recently announced the construction of a new 150,000 SF Tucson Mining Center with over new 600 engineers employed as well as numerous other product development positions being created. Four new properties are also currently in different phases of development in Tucson which has drawn the attention of several national retailers. These companies have expressed interest in moving into spaces downtown upon the completion of these additional units. This could include a grocer in the future to accommodate the growing population. With the market so hot, now is a great time to sell your property. Want to see how much it is worth? Please contact me for a free consultation at 520-400-9811 or firstname.lastname@example.org.
Everyone have a safe and happy Thanksgiving.
Keller Williams Southern Arizona
1745 E River Rd #245
Tucson, AZ 85718
Chuck Corriere, MBA