Exceptional Value-Add and Upside Potential

• At ±92% leased, The Smart Building offers a high level of stability but also offers robust mark to market opportunity.
• In-place rents are 3-7% below market averages, offering clear potential for income growth.
• Minimal tenant improvement (TI) exposure—thanks to low-buildout, plug-and-play suites—contributes to better capital efficiency and faster re-leasing.
• Current vacancy consists of six (6) suites and totals ±3,093 SF.
• The Smart Building also benefits from having a small and manageable average suite size of ±1,000 square feet which perfectly caters to office demand in the area.
• Small office suites require a significantly lower investment in tenant improvements as leases roll.
• Low per suite utility cost expense due to smaller floor plan footprints
• Configuration options for most of the suites in the building—such as lobbies, conference rooms, and offices—are typically limited to a single layout, which reduces the need to move walls and make other costly modifications.
• The trade area encompassing a 1-mile radius surrounding The Smart Building enjoys exceptionally low vacancy of only ±2.8% as of the first quarter 2025.
• The Central Tucson office submarket enjoys lower vacancy and stronger leasing velocity than Tucson’s outlying areas.
• Overall asking office rental rates in the trade area are ±$19.73/SF full-service gross.
• Additionally, office rent growth in the trade area has grown an astounding ±34% since 2022 representing an ±8.5% annual average growth rate.
• Office rent growth in the trade area has grown an astounding ±34% since 2022 representing an ±8.5% annual averagegrowth rate.