CRE Report 06.05.2011

June 5, 2012 at 11:08 am | Posted in Market Reports, Radio Show Reports | Leave a comment
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Bob – Walt, what do you have for us this morning?

Walt– Good Morning Bob, I have some updates for you in the Albuquerque commercial market.  First of all, some good construction news, Admiral Beverage is going to build a 219,000 square foot building at Rio Bravo and Prince. The $15 million dollar project will employ at least 55

Image Credit: http://www.dpsdesign.org/abq-uptown

contractors and add 20 permanent jobs in addition to the 185 current employees. So that is good news!

Admiral Beverage acquired Maloof Distributing in 2010. Admiral will start on 24 acres for its warehouse and delivery operation.  The remaining 17.5 will be for future use.

In the retail world ABQ Uptown has a couple of new tenants for the Lifestyle Center.  J. Crew and North Face will take space in the former Border’s location.  There will be one remaining space in the 20,000 square foot building and when that space gets leased the center will be 100% occupied.

J. Crew and North Face could also create additional retailers to start to look at the Albuquerque market. As retailers see that J Crew and North Face have selected the Albuquerque market it will entice others to look at the opportunities in the Albuquerque retail market for opening stores in ABQ Uptown, Coronado or the Winrock project.  J. Crew and North Face are two strong retailers with successful platforms and will add to the strength of ABQ Uptown.  As more retailers continue to make there way to Albuquerque it continues to open the door for additional retailers and also higher end specialty retailers.

It’s like the story of the Burger King real estate department. The story is it was just one person.  The task was to find where McDonald’s was building a restaurant and buy the land next door and build a Burger King.  All the heavy site analysis and demographics was done, which is similar for retailers, as more retailers look to invest in specific locations and other retailers are already there and doing well, the risk of putting in a store begins to ease.

Bob – Anything else and how can our listeners contact you regarding commercial real estate?

Walt – Thanks Bob, Sperry Van Ness is a full service commercial real estate company in 160 markets across the country.  We have specialists in sales and leasing of office, industrial and retail properties.  We help Tenants find space through our Tenant Representation platform, we have a full service professional property management company and we have disciplines in loan sales, bank Real Estate Owned sales through our Asset Recovery Team, Auction Services, Investments sales, and Loan Workouts through a strategic partner.  We have what’s required to make the right choice in commercial real estate.

If you have any commercial real estate requirements we have solutions.

Direct line for me, Walt Arnold is 505-256-1255, our website is www.waltarnold.com, also follow me on Twitter and become a fan on Facebook fore more up to date CRE news updates.  Give me a call to discuss the Sperry Van Ness difference in commercial real estate.

CRE Report 05.29.12

May 28, 2012 at 10:08 pm | Posted in Market Reports, Radio Show Reports | Leave a comment
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Construction beginning at Winrock Mall

Bob  – Walt, what is going on it Winrock, it sounds like some things are in the works?

Walt – Good morning Bob. Yes things are beginning to happen at Winrock.  Regal Entertainment’s 70,000 ft.² cinema, along with an IMAX auditorium and three restaurants, Dave and Busters, Genghis Grill and BJ’s Restaurant and Brewery are all scheduled to open at Winrock in the near

Image Credit: http://www.labelscar.com/dead-malls/winrock-shopping-center

future. The Cinema is scheduled to open Memorial Day 2013. So looks like there’s some positive traction at Winrock and deals are in the works, and eventually there will be 30 national and local retailers in this first phase of Winrock.

Bob, one of the mantras for real estate is location, location, location and other key word for any investment is timing.  Winrock ran into some timing issues when the developers, Goodman Realty Group, initially planned to redevelop the shopping center.

This location has not diminished and if you look at Winrock’s location at Louisiana and I-40, it’s tough to think of a better long term retail location in the metro area.  The proposed 165,000 square foot Target at Indian School and Uptown will also be a significant traffic driver to the Uptown core as well.

Bob – The Winrock project has been in the works for some time, it’s good to see some movement on that property. Why did it take so long?

Walt – There were several issues, the Uptown Sector plan took time to get through approvals, the TIDD (tax increment development district) had to be created and it took time to get its approvals, but the big stick holding it up the most was the economy. But retailers are pressing forward due to the strong demographics, convenient access and synergy of the Uptown commercial area.

Bob  – Walt what else do you have for us today?

Walt –  Yeah Bob, I’d just like to take a moment to thank all service men and women for serving our country and protecting our freedom.

Also remember for daily CRE news updates follow me on Twitter @waltarnold or become a fan of Sperry Van Ness on Facebook today.  Thanks, Bob I’ll talk to you next week have good one.

Albuquerque CRE Report 02.19.12

February 22, 2012 at 10:29 pm | Posted in Market Reports, Radio Show Reports | 1 Comment
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Albuquerque retail market

Bob – Walt you gave an update on the office and industrial markets last week, what about the retail market?

Walt – The retail market ended the year with a total vacancy rate just over 12%, which is down slightly from a year ago, asking rates vary widely, from the aging conditions of some of centers, to the superior location and synergy of other centers.

Older strip centers are around a median asking rate of $12 per square foot per year, NNN, neighborhood centers are around $14 per square foot per year, NNN and regional centers like Coronado and Cottonwood have a median asking rate of approximately $48 per square foot per year, NNN.

ABQ Uptown has a median asking rate of $34 per square foot per year and some superior locations have asking rates upwards of $30 per square foot per year based on their location, for example the Paseo Del Norte Corridor.

Construction completion was 61,000 ft. in 2011, so still very little construction was completed last year.

So in summary from year ago, vacancies are down, construction is up, net absorption is up, and asking lease rates are generally unchanged from a year ago with a few exceptions

Bob  – Walt you’ve mentioned location several times, is it still location, location, location?

Walt – Well, location is very important. There are some other issues, here’s an acronym that might help with retail site selection PASTA V.

P – Parking, if you’re a retailer you need at least five spaces per thousand square feet (5/1000) of building to parking spaces ratio and the closer the spaces are to the front door, that is better.

A – Access, the site needs to have convenient access, preferably with more than one way to enter and leave the center.

S – Signage, building facade signage should be visible from at least 200 feet.

T – Traffic, a retailer obviously needs to have strong traffic patterns to survive, including intersections with traffic lights.

A – Activity, the best retail locations offer a variety of businesses to attract as many shoppers as possible.

V  – Visibility, watch for trees and other obstacles that block the visibility of the center. A retail center needs to have great visibility from the street.

Bob – How can people contact you to discuss commercial real estate?

Walt – Thanks Bob, call Walt Arnold, the Sperry Van Ness at 256-1255 or check us out on the web@WaltArnold.com. I hope everyone has a great Presidents’ Day and Bob I’ll talk to you next week

CRE Report 02.12.2011

February 13, 2012 at 9:30 pm | Posted in Market Reports, Radio Show Reports | Leave a comment
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Office and Industrial updates

Bob – Good morning Walt, What do you have for us today?

Walt – Bob, I know you’re not a big Paul McCartney fan, but I really enjoyed the Grammy’s last night and his performance at the end was awesome.  But I digress, back to commercial real estate.

Today I wanted to give a year-end summary for office and industrial markets for the Albuquerque metro area,

The Albuquerque office vacancy was 18.7% which is slightly up from a year a year ago.  Some notable construction completions were the U.S. Forest Service building and DEA both completed projects in 2011. REDW also occupied a 46,000 ft.² built to suit in December 2011.

Median asking rates for the market were at $15.50 per square foot down $.13 from a year ago.

Blend and extend strategies where the landlord gives the tenant some concessions now and extends the lease term for longer a longer period of time are still working in this market. Most landlords are doing all that they can to retain tenants.

Class A space is $22.50 per square foot per year

Class B space is $17.73 per square foot per year

Class C space is $14.00 per square foot per yea

Bob – What about the industrial markets?

Walt – At the end of 2011 the vacancy rate in the industrial market was at 9.4%.

Some notables that happened in 2011: 609,000 ft.² of the former GE plant in the South Valley was removed from the market statistics when the building was demolished. CNM also moved about 82,000 ft.² out of the market vacancy numbers by occupying a building at Jefferson and Alameda; those two properties removed   1.7% of the industrial market from the vacancy statistics. That one way to improve the numbers is to remove supply from the market

Another notable was that US foods built a 134,000 ft.² building in the South Valley.   Only 23,000 ft.² of speculative space was built in the Albuquerque market in 2011.

Median asking rates: $6.69/sf/yr on a triple net (NNN) basis down 16 cents from a year ago and R&D/Flex space vacancy was at 9.5%.

Bob – If you were handing out any awards for last year, do you have any winners?

Walt – Yes I do, it would have to go to Titan Development/Reid and Associates for completing the Forest Service Building in the Journal Center, also for selling both of those buildings for approximately 50 million dollars and also the completion of the REDW building in the Journal Center.  If they were at the Grammys they would be like Adele, they would have won all the awards and been the star of the show, so congratulations to Titan Development and Reid and Associates for a great year.

Bob – Walt, how can people contact you for information on commercial real estate?

Walt – Thanks Bob, they can call Walt Arnold, 256-1255 or check us out on the web at waltarnold.com also follow me on Twitter of become a fan of Sperry Van Ness on Facebook.  For all you guys and gals out there don’t forget tomorrow is Valentines Day.  Make tomorrow a great day. See you next week!

CRE Report for 01.22.2012

January 23, 2012 at 12:39 am | Posted in Market Reports, Radio Show Reports | Leave a comment
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Lease expiration tips for tenants.

Bob – Walt, if I was a commercial tenant in building and my lease is closing in on its expiration date, what are my options?  What should I be thinking about?

Walt – Bob, most tenants don’t anticipate the time it takes to either renew their existing lease of look at other possibilities in the marketplace.

The first option is to do nothing and try to stay in a month to month tenancy with no protection against the owner giving 30 days notice to vacate.  There might also be a “holdover charge” in the lease which the landlord can charge and that additional amount is usually 25% to 100% increase in the lease rate.

Bob – That’s a little scary, what about renegotiating for myself, it can’t’ be that hard, can it?

Walt – It’s like my father in law use to say you don’t know what you don’t know.  If you’re not in the market every day, a tenant might risk paying more than they should in this current market, they might also not be aware of current market incentives offered by landlords, there are some commitments in the fine print of the lease document that, in coordination with an attorney, need to be discovered and addressed to avoid clauses that could be harmful to the tenant in the lease, and most importantly it takes time away from the business to accomplish all this and it take the focus off the primary objective, your business.

Bob – Walt, I take it this is where you tell me how the Tenant Representation process works and how you can help tenants renew or relocate in this market.

Walt – Yes Bob, thanks for the softball. At Sperry Van Ness our brokers have handled thousands of leasing assignments we have the experience in getting the best possible results.  This is done at no costs to the tenant as the landlord pays the commission when the lease is executed.  We provide up to date relevant market information and guide our clients through the process from the initial meeting to move-in and beyond.  And finally the tenant representation process allows us to do what we do best which is the leasing component and allows the business owner do what they do best and that is to keep their focus on running the business.

Bob – How can people contact you today to talk about commercial real estate?

Walt – Thanks Bob, call me, Walt Arnold, on my direct line 505-256-1255 or check us out on the web at waltarnold.com.  Also if you have an issue regarding commercial that you need help with or want to talk to someone about give me a call and we can discuss it.  Talk to you next week, with my prediction for the Super Bowl, what else is there to talk about the next couple of weeks? Have a great week!  Also check out Sperry Van Ness on Facebook become a fan or follow me on Twitter for daily CRE news updates.

CRE Report 12.19.2011

December 20, 2011 at 9:13 am | Posted in Market Reports, Radio Show Reports | Leave a comment
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End of the Year Budgeting for Property Owners

Bob – Walt as we approach the end of 2011 and the Holidays are upon us, what are some things commercial property owners should be considering at the end of the year.

Walt – One thing all investment property owners should consider is establishing a budget for the upcoming year and included in the budget should be the amount of distribution or money that you want to make to yourself.  Creating or updating a budget is forward thinking and helps to put money aside for items that will need to be replaced in the coming year and creates a plan for replacing parts of the property that will fail eventually.

Bob – What if someone rents a single-family house or a Four-plex, should they create a budget?

Walt – With larger properties it is a requirement to track income and expenses against the budget and this helps keep the property manager aware of any categories which have a surplus or shortage against the monthly budget.

Spending the time to create a budget for any size or type of investment property is very beneficial to the success or failure of an investment property.  For a single family rental or a Four-plex owner to spend the time to create a budget will be one of the best exercises they can do to preserve the asset and increase cash flow. Don’t neglect working on a budget for 2012.

Bob – Any other year-end tips for property owners?

Although we have already had some cold weather and more on the way, continue to winterize any water outlets or exposed water sources on the property, check gutters and canales for leaves so they don’t make a leaf dam at the drain creating ponding of water on the roof, and one last idea is to buy snow melt and snow shovels ahead of time because when it snows and you need it, everyone else will also need it and those items will be difficult to find when you need it the most.

Bob – Since there won’t be a Real Estate report next week, any year-end thoughts or New Year predictions today?

Walt – First, I would like to say thanks for talking to me almost every Monday morning this year; I appreciate you having me on the show, and Jen also thanks to you.  Sometimes this time of year is more hectic and stressful than it should be, I hope everyone has a great holiday season and New Year with an over emphasis of grace this Christmas season.

Next year will be a better than this year, a little, as we head on a slow gradual climb out a very tough market and one of the worst recessions in history.  I know that at Sperry Van Ness we are looking forward to 2012.

My number is 256-1255, website waltarnold.com.

Bob, the best to you, your family, the KKOB staff and your listeners. I will talk to you next year.

CRE Report 12.05.2011

December 15, 2011 at 12:06 pm | Posted in Market Reports, Radio Show Reports | Leave a comment
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Unemployment down, will CRE rise?

Bob – Walt, there has been some good news in the job market, unemployment is moving lower, now nationally 8.6% and even lower here.  Sounds like good news for commercial real estate?

Walt – It is definitely a good sign!  Unemployment is at the lowest levels in 32 months, 120,000 jobs added in November, with strong growth in hospitality and retail, but also gains in manufacturing, auto sales and even an uptick in housing.  Consumer confidence is improving and business investment is up. Unfortunately about half of the improvement in the unemployment rate was due to workers dropping out of the workforce.

But, if the trend continues for a while, it will be great news for all types of commercial real estate. As we have talked about before we need jobs to improve the commercial real estate market. Hopefully those jobs numbers will keep going up.

Bob – Speaking of going up, the REDW building in the Journal Center is looking close to completion.  What is going on with that construction project?

Walt – I was talking with Bill Smith of Reid & Associates last week and that building is a great story for the Design Build process.  In the Design/Build process the client selects the builder based on their qualifications and their ability to make the project a successful one. The building was initially coming in at costs that were jeopardizing the project.  Reid & Associates stepped in and the property is coming in where it needs to be costs wise and also on time for a December 2011 move in for the accounting firm.

REDW building is located at Jefferson and Masthead in the Journal Center,  a 45,000 square foot LEED Certified building in the heart of the Journal Center.

Bob – Walt, what else do you have for us today?

Walt – Since it’s December, I thought I would give an update on the Albuquerque Retail Market. After record setting Black Friday sales have raised the hopes for a great holiday season.  Maybe this will be the start of stronger retail sales moving forward.

The current overall retail market vacancy is 9.4%, with about 80,000 square feet under construction.  Retail asking rates average about $14.25 per square foot per year for neighborhood centers and around $20 per square foot per year for Power centers.  Rates have come down roughly 13% from a year ago.   Moving forward vacancies will be decreasing slightly, asking rates trending lower and landlords of older centers doing whatever they can to get and keep tenants.

Bob – How can people contact you to talk about commercial real estate?

Walt – Thanks Bob, call Walt Arnold at Sperry Van Ness, 256-1255, website is waltarnold.com. Hey Bob, it looks like it might be time to get those skis and snowboards waxed up and ready to go.  I might have to call a “Special Company Board Meeting” in Taos this week! Hey Bob, have a great week.

For daily CRE news updates follow me on Twitter or find me on Facebook.

CRE Report 11.21.2011

November 28, 2011 at 12:37 pm | Posted in Market Reports, Radio Show Reports | Leave a comment
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News from SIOR, NAIOP, and Urban Land Institute conferences.

Bob – Walt, what do you have for us today?

Walt – Well, I went to the Society of Industrial and Office Realtors (SIOR) market review and outlook at the NAIOP meeting on Monday and the Urban Land Institute meeting on Friday so I got some great info last week and wanted to pass some of it along.

The key factor at both meetings appears to be the need for jobs to start to get us back on a road to recovery.  New Mexico could see more job losses in government sectors as all levels of government are feeling the pinch of cutbacks.

Another topic was the office market vacancy which is 18.3% and one of the reasons is emerging technologies, as workers are working more effectively with technology.  Workers are able to connect to the internet wirelessly almost anywhere.  This trend will continue to have an effect on the office market.

Bob – Walt, that trend of working from home has been around for some time, but hasn’t really caught on.  What’s different this time around?

Walt – This time it also involves all those 20 and 30 year olds that multitask and can work from anywhere at any time.  So working from wherever will continue to grow stronger and will have some negative impacts on office space.

Bob – You also mentioned the Urban Land Institute, what was the discussion at that meeting?

Walt – One interesting point from Mark Lautman  was that all the states around New Mexico are winning the site selection battle for new companies and are gaining jobs; unfortunately, New Mexico is not really in the game at this time. So we need to do something to get out of this scenario and start making New Mexico “the place” to relocate.

Todd Clarke also spoke about the strength of the apartment market and the need for at least 4,600 more apartments in Rio Rancho and 1,300 more apartments needed in Albuquerque.  There was also discussion on how the youngest of the adult population, the millineals,  they have a desire for less space and less things and that will affect  how apartments will be built in the future and also where.  There is a much greater demand for housing to be on transportation corridors and in developments that minimize driving.

Bob – Anything else for today and how can people contact you to talk about commercial real estate?

Walt – There were a couple of quotes that came out of the meetings, one that I would like to quote was regarding how Landlords need to make vacant space as appealing to tenants as possible.  Debbie Harms,SIOR, quote was,” You aren’t going to have to buy a prom dress for that pig yet, but you are going to have to put some more lipstick on it.”  So get those vacant spaces ready to lease, it will help!

If you want to talk about commercial real estate. Give me a call, Walt Arnold, 256-1255, website waltarnold.com you can also follow me on Twitter of find me on Facebook for up to date news on all things CRE.  Talk to you next week.

CRE Report 10.17.2011

October 31, 2011 at 10:13 am | Posted in Market Reports, Radio Show Reports, Videos | Leave a comment
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Lease Negotiations

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CRE Report 09.27.2011

September 27, 2011 at 11:21 am | Posted in Market Reports, Radio Show Reports, Videos | Leave a comment
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End of Summer CRE Summary Video

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