Utilities & Property Costs


Natural Gas

Residential $22.29
Commercial $8.62
Industrial $6.02
Dollars per Thousand Cubic Feet
So​urce: US Energy Information Administration, August 2016


Electric Rates

The commercial and industrial electric rates are consistently lower than the national average and businesses of all kinds can profit from these savings. Energy-intensive businesses, such as data centers, especially benefit from TEP’s low energy costs and high reliability. The chart below shows examples of demand and usage, with corresponding rates and monthly bills.
 

500 kW, 180,000 kWh    
  $/kWh Monthly Bill
US Average $0.107 $19,285
Tucson Electric Power $0.098 $17,715
Arizona Public Service $0.099 $17,840

 

1,000 kW, 650,000 kWh    
  $/kWh Monthly Bill
US Average $0.086 $55,814
Tucson Electric Power $0.076 $49,664
Arizona Public Service (E-32 Large Primary) $0.071 $46,399



50,000 kW, 32.5 Million kWh    
  $/kWh Monthly Bill
US Average $0,079 $2,579,292
Tucson Electric Power $0.071 $2,313,310
Arizona Public Service (E-32 Large Primary) $0.068 $2,221,491

Source: Edison Electric Institute Typical Bills and Average Rates Report Summer 2015


Water

Industrial & Commercial Rates

Charge Charge per Ccf
Usage Base Rate $2.60 (industrial) $2.64 (commercial)
Tier 1 Summer Surcharge $1.00
Tier 2 Summer Surcharge $0.27
Central Arizona Project (CAP) $0.65
Conservation Fee $0.08

Per 100 cubic feet (Ccf) (1 Ccf = 748 Gallons)
Source: https://www.tucsonaz.gov/water/rates-and-monthly-charges/industrial

 

Property Costs

Average Land Cost per Acre

Submarket Overall Weighted Average Price 
(per square foot)
Airport $2.00 - $2.75
Oro Valley $4.00 - $10.00
Northwest $2.75 - $4.00
Southeast $1.50 - $2.50
South Central (Palo Verde/Ajo) $2.75 - $3.75
Source: PICOR - A Member of the Cushman & Wakefield Alliance

Average Commercial/Industrial Lease Rates

Market Type Overall Weighted Average Net Rent
(per square foot)
Warehouse/Distribution $0.49
Manufacturing $0.49
Office Service/Flex $0.55
High-Tech $0.76
Class Type Overall Average Asking Rent (per square foot)
Class A $23.72
Class B $16.15
Class C $14.15
Source: PICOR - A Member of the Cushman & Wakefield Alliance

Vacancy Rates

Sector 2014 2015 2016 2017
Industrial 10.6% 9.1% 7.8% 7.4%
Office 12.6% 12.8% 11.0% 9.9%
Retail 6.7% 6.6% 6.4% 6.4%
Land (total permits issued) 2,898 2,863 2,928  
Source: CoStar; PICOR - A Member of the Cushman & Wakefield Alliance
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