Tucson Industrial Figures Q3 2026

Market conditions were mixed in Q3 2026 as a single large lease transaction drove 475,000 sq. ft. of positive net absorption and lowered vacancy 100 basis points (bps) to 8.0%. The occupancy gain reversed the modest losses recorded over the prior two quarters and marked the strongest absorption result since early 2024. Despite the improvement in occupancy, the average asking rate edged down to $0.82 per sq. ft. NNN per month from $0.83 in Q2. No new industrial space delivered during the quarter, easing near-term supply pressure, while the construction pipeline increased to 763,000 sq. ft. from 315,000 sq. ft. in Q2. Although fundamentals improved, much of the quarter's performance was tied to one significant transaction, with future occupancy gains likely dependent on broader leasing activity.