• Tucson's office continues to see a decline in vacancy ending 3rd Quarter 2019 at 10.7%. The rate is down due to steady tenant demand and limited new supply.

• The decline in vacancy can be attributed to steady demand and moderate new supply that has been limited to build-to-suit (BTS) space.

• East Central submarket is showing construction activity this quarter with 125,000 sq. ft. of build-to-suit for Texas Instruments new office building breaking ground.

• The market wide average asking lease rate rose to $21.14 per sq. ft. full service gross (FSG-annual) in the third quarter, marking an annual increase of 3.0%.

• Tucson’s office market recorded the first quarter of negative absorption since Q3 2018.