Healthy Business Climate, Strong Population Growth Propel Tucson Office Market

TUCSON, AZ— Office property owners in Tucson will benefit from a healthy employment market and a lack of significant building in 2008, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm.



The metro’s pro-business climate and robust household growth continue to encourage payroll expansion in population-driven employment segments.
Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Tucson moves up four places this year to No. 11.


“The metro’s attractive long-term demand drivers and positive economic outlook will sustain investor activity in 2008,” says David Wetta, (photo top right) regional manager of Marcus & Millichap’s Tucson office.


Following are some of the most significant aspects of the Tucson Office Research Report:


· Employers are forecast to add 5,200 jobs this year, a 1.4 percent increase.
· Completions are projected to total approximately 75,000 square feet in 2008.
· Vacancy is expected to decline 70 basis points to 9.9 percent.
· Asking rents are forecast to climb 3.7 percent to $22.24 per square foot, while effective rents gain 4.4 percent to $19.20 per square foot.
· Opportunities may be found in the Central submarket, where the University of Arizona is driving population growth and limited new completions are bolstering fundamentals.

In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.
For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit www.MarcusMillichap.com.


CONTACT:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/