Tucson’s Q2 retail vacancy held steady at 6.2% amid a resurgence in demand for consumer goods, entertainment, and travel as vaccine availability and guidance opened the door for spending like it’s 2019. Summer midweek waitlists at restaurants have become a thing. With continued strength in class A space, class B and C properties saw improved absorption and declining vacancies. Among the sizzling regions in the retail market include the Central East submarket (Campbell Ave corridor, and the University area), Foothills submarket (Oracle Rd and Ina Rd), and a return to the Downtown submarket. Medical and service-based users have increased appetites for neighborhood-based locations, with competition between multiple clinic brands entering the Tucson market.
