Editor’s Insight: Unwrapping 2023 Successes and Challenges

Unwrapping 2023 in Review is like a gift to look back over the year and appreciate some of the high moments in 68 pages!

We said 2023 would be a challenging year; some might say, “That was an understatement.” It was one of the slowest for a beleaguered commercial real estate industry on record! November was the lowest sales volume since I started tracking CRE in 2013. I say this only to reassure everyone that it’s not you, it really is the economy!

A 40-year period of low inflation and steady economic growth fueled by low interest rates appears to have ended. Commercial property owners, investors, and all of us must face this new reality.

In short, the industry will be undergoing rehabilitation in the next few years. The first step in this process has already been taken: a realistic adjustment in expectations, including the realization the industry can’t count on things going “back to normal” anytime soon and cap rates will continue to rise.

For the second year, we are unwrapping the Best-in-Class Winners for 2023. These commercial real estate brokers deserve recognition for their outstanding performance, representing 20% of $1.8 billion in 2023.  For the first time and by popular demand, we have added a Best-in-Class “Good Works” Developer Award based on the most generous acts of time and resources to our community.

Please join us in congratulating all 14 Best-in-Class winners this year! Clint Wadlund, Hamid Panahi, Allan Mendelsberg, Joey Martinez, Stephen Cohen, Dave Volk, John Yarborough, David Carroll, Will White, John Carroll, Gary Emerson, Pat Welchert, Rob Lamb and Humberto “Bert” S Lopez our Good Works Developer.

Under the optimistic trends category, we thank Judy Lowe for reminding us of the Power of Real Estate as a catalyst for regional prosperity. A catalyst that reaches beyond our community’s financial resources and right into the social fabric of our community to enhance the quality of life for everyone.

Congratulations to the 2023 Ideafunding Award Winners, Tucson’s own “Shark Tank” event that has been encouraging the entrepreneurial landscape for 25 years in Southern Arizona.

We also congratulate the Small Businesses recognized by Pima County Supervisors and the Small Business Commission this year.

Thanks to Southern Arizona Economic Development Group for their gift from Cochise County, which keeps us informed.

We also wanted to remember those from our real estate community who were lost this year and are very missed.

We then looked back over 2022 Trends to unwrap a summary of the year month-by-month for our readers. From January, we highlighted trends in Finance, Residential Market, Retail, Economic Development, Industrial, Hospitality, Multifamily, and Office segments while demystifying Water Resources in our Community.

In May, MPA Celebrated 25 Years of Collaboration and Common Ground Awards, and we congratulate the winning projects and the 2023 Board of Directors for their tireless work.

We sincerely thank everyone who helped with every Trend Report issue this year. Without the involvement of these individuals sharing their knowledge and time, these reports would not be possible.

We also thank our Trend Report team: Patti van Leer, Michael Rossmann, Melissa Vucijevic, and Jack Paddock.

We’ll start work on January 2 on an extraordinary February issue, our “Finance Issue,” and anticipate changes in financial trends. You won’t want to miss this one, but I think I say that every issue.

We also thank you, our readers, for your continued support. As always, we appreciate your feedback and welcome your comments.

Happy Holidays to All, and Happy New Year!

Karen Schutte,
Trend report
Managing Editor

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