TUCSON—The Tucson office market is a mixed bag. But thanks to a demand in medical office space, there is some good news. By increasing the number of insured citizens, coupled with a growing aging population, the Affordable Care Act is anticipated to be a key demand driver for Tucson medical space, according to Richard Kleiner, principal with Cushman & Wakefield | PICOR.

“We represent a lot of medical property in town,” Kleiner tells GlobeSt.com, Tucson Medical Center being one entity. “And there is no question about the growth tied to the Affordable Care Act. We're seeing more and more leasing activity in the 2,000 to 20,000-square-foot range in the medical center near the hospital. Practices want to locate closer to hospitals—closer to the center of their universe.”

Lacking significant drivers and scant job growth, the Tucson office lease market ended the first quarter at 12.4% vacancy, up slightly from year-end 2013 and matching its highest mark in this real estate cycle.