Southern Arizona is served by a number of organizations, both public and private, that provide basic utilities and services to local residents. Utilities are regulated by the Arizona Corporation Commission. Most of the water utilities are regulated by the Arizona Department of Water Resources and their respective elected bodies.
Natural Gas
Southwest Gas – covers Pima and Cochise Counties and most of Pinal County
| Residential | $14.37 |
| Commercial | $9.10 |
| Industrial | $6.63 |
Source: US Energy Information Administration, December 2017
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. Tucson Electric Power covers, Ft. Huachuca, most of Pima County and all of Santa Cruz County. Sulphur Springs Valley Electric Cooperative covers much of Cochise County.
| 500 kW, 180,000 kWh | ||
| $/kWh | Monthly Bill | |
| US Average | $0.1089 | $19,607 |
| Tucson Electric Power | $0.1117 | $20,111 |
| 1,000 kW, 200,000 kWh | ||
| $/kWh | Monthly Bill | |
| US Average | $0.1331 | $26,618 |
| Tucson Electric Power | $0.1511 | $30,214 |
| 1,000 kW, 650,000 kWh | ||
| $/kWh | Monthly Bill | |
| US Average | $0.0882 | $57,329 |
| Tucson Electric Power | $0.0785 | $51,041 |
| 50,000 kW, 32.5 Million kWh | ||
| $/kWh | Monthly Bill | |
| US Average | $0.0833 | $2,707,225 |
| Tucson Electric Power (ED Rider Applied) | $0.0593 | $1,928,576 |
Source: Edison Electric Institute Annualized Rates Report; TEP; Winter 2019
Water
Industrial & Commercial Rates – Tucson MSA
| Charge | Charge per Ccf |
|---|---|
| Usage Base Rate | $2.85 (industrial) $2.88 (commercial) |
| Tier 1 Summer Surcharge | $1.00 |
| Tier 2 Summer Surcharge | $0.27 |
| Central Arizona Project (CAP) | $0.69 |
| Conservation Fee | $0.09 |
Per 100 cubic feet (Ccf) (1 Ccf = 748 Gallons)
Source: https://www.tucsonaz.gov/water/rates-and-monthly-charges/industrial
Water conservation
Tucsonans can be justifiably proud of their national leadership in effective use of water. Tucson Water has encouraged water conservation for more than three decades, and as a result Tucson has one of the lowest per capita water usage rates in the southwestern United States. Strengthening our conservation ethic is a key strategy in ensuring our future sustainability.
Wise use of all these water resources requires planning. Tucson Water has developed a Long Range Water Resources Plan which provides a comprehensive look at Tucson’s future water supply requirements. Using the plan as a guideline allows the community to implement projects and programs that will provide adequate water supplies to meet the needs of future generations. The region also has access to Colorado River water, which is imported via the Central Arizona Project. This renewable resource will, over time, largely replace groundwater as Tucson’s primary drinking water supply.
Property Statistics
Average Land Cost per Acre
| Submarket | Overall Weighted Average Price (per square foot) |
| Airport | $2.50 – $3.00 |
| Oro Valley | $5.50 – $10.00 |
| Northwest | $3.25 – $4.25 |
| Southeast | $1.50 – $2.50 |
| South Central (Palo Verde/Ajo) | $3.00 – $3.75 |
Source: PICOR – A Member of the Cushman & Wakefield Alliance, 2018
Average Commercial/Industrial Lease Rates
| Market Type | Overall Weighted Average Net Rent (per square foot) |
| Warehouse/Distribution | $0.51 |
| Manufacturing | $0.42 |
| Office Service/Flex | $0.62 |
| High-Tech | $0.72 |
| Class Type | Overall Average Asking Rent (per square foot) |
| Class A | $24.77 |
| Class B | $18.48 |
| Class C | $15.03 |
Source: PICOR – A Member of the Cushman & Wakefield Alliance, 2018
Vacancy Rates
| Sector | 2014 | 2015 | 2016 | 2017 |
|---|---|---|---|---|
| Industrial | 10.6% | 9.1% | 7.8% | 6.8% |
| Office | 12.6% | 12.8% | 11.0% | 9.0% |
| Retail | 6.7% | 6.6% | 6.4% | 6.0% |
| Land (total permits issued) | 2,898 | 2,863 | 2,928 | 4,151 |
Source: CCIM