CRE Report 04.23.12
May 14, 2012 at 9:31 am | Posted in Radio Show Reports | Leave a commentTags: Albuquerque Apartments, Albuquerque Commercial Real Estate, Apartments, Auction, develop, development, sperry van ness, vacancies, Vacancy Rates, walt arnold
Albuquerque’s apartment market continues to thrive.
Bob -Walt, what is going on with Albuquerque’s commercial real estate this week?
Walt – Good morning, Bob. The apartment market continues to shine as the choice for real estate investors, developers and sellers. All this good news has opened the door for development in multi-family properties.
Development is starting; a local real estate group is developing 201 units at Eagle Vista on the Westside, with more units
planned. Rob Dickson (Albuquerque High developer) is planning to convert the De Anza Motor Lodge into 50 apartments in a 4.5 million dollar project. Titan Development and Phoenix Alliance Residential are planning projects in the northeast heights.
Some other projects are American Real Corp’s 568 units south of the Westside Costco along with a 166-unit expansion at the Aspens, Bay Hill Development is building 240 apartments at Coors and Montano and Real Capital Solutions is adding several hundreds units as expansion to Westside projects. So projects are in the works and working their way to construction!
Bob—-With all these planned projects coming on the market, what will happen with the vacancy? Is this going to create an overbuilt situation?
Walt – Even with all these apartments, it will have little impact on the vacancy rate, as these units will be absorbed quickly.
With the increased requirements to get into a home loan, more people will remain in the rental market. And this scenario could continue to play out for some time with the low interest rates available on multi-family, decreasing land prices (which helps the developers make their projections to build) and the increased demand for rental housing, the multi-family market for investors, developers and sellers will remain a strong play in this market.
Bob – On to another topic! You have an auction coming up with the Auction set for May 23. What are the details on the Auction?
Walt – Yes, 401 San Pedro NE, located just south of Lomas, the building is a 4,952 square foot multi-tenant building. This property is a little gem across from the Fairgrounds. It is an attractive property set for Auction on Wednesday, May 23rd. This property works well as a small multi-tenant investment property or another possibility is for an owner user with some tenants to help pay any debt obligations.
It’s an online auction from 11:00 AM to 3:00 PM on May 23rd. The auction website is www.auctionsvn.com/sanpedro. Again, that’s www.auctionsvn.com/sanpedro. This property will be sold on May 23rd; the opening bid is $199,000.
Bob – Walt, how can people reach you today?
Walt – Thanks Bob, my direct line is 505-256-1255. Did I mention the auction website? www.auctionsvn.com/sanpedro. This is an opportunity to acquire a nice, well maintained property in northeast Albuquerque. The online auction process makes it easy to participate and we have all the documents up on the website to review. Also check out my new and improved website waltarnold.com or follow me on Twitter @waltarnold or become a fan of SVN on Facebook for daily CRE news updates.
Thanks Bob for the time today, have a great week.
CRE Report 04.09.2012
April 30, 2012 at 11:20 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, Bubba Watson, CRE, GOlf, Golf Clubs, Masters, property management, sperry van ness
Sperry Van Ness has all the tools for success in CRE
Bob – Walt I hope had a great Easter weekend and enjoyed watching the Masters, would you have for us today?
Walt – Thanks Bob, I did have a great Easter weekend and the Masters was a great one! Congratulations to Bubba Watson on winning this year’s Masters.
I’m sure Bubba used every club in his bag at least once, some clubs he use more than others, some maybe only once the whole weekend, but it was important that he had all those clubs in his bag.
Photo credit http://www.businessinsider.com/sportspage
At Sperry Van Ness we have a lot of clubs also available to us, some we use more often than others, and some every once in a while, but it’s important to have all those clubs in the bag. For example, we use our office, industrial and retail leasing for landlords and tenants probably more than most, but sometimes we might need to use our auction services, sale/leaseback or net leased investments to help our clients.
We don’t always use these, but it’s important that we have them and like in golf, you’ve got to have those clubs in your bag to be a complete player and at Sperry Van Ness we have all the clubs to help our owners, landlords, tenants and investors to make the right decisions regarding their commercial real estate.
Bob – So what you’re what you’re saying is that you have your Driver, 7-iron, pitching wedge and putter, but once in a while, you might need a lob wedge or a utility club.
Walt – Yes Bob that is the analogy, you use your driver, wedge and putter on most holes but sometimes you need that 64 degree lob wedge and in commercial real estate that might be auction services or we have an asset recovery team for our lender clients to help them make decisions regarding their assets, if someone has a special needs like property management,hospitality, receivership or sale-leaseback we also have the ability to help them with those selections if needed.
As a golfer you wouldn’t play in the Masters with six clubs in your bag and I think it’s important to project that we have the full 14 club selection that you need to be a champion; and every day at Sperry Van Ness we are helping our clients and customers not only with their day-to-day real estate requirements, but if they need a club for that special situation, we can pull the right club and strategy out of the bag and help our clients make the shot that they need and the decision process to make the right choice in commercial real estate.
Bob – How can people contact you today regarding commercial real estate?
Walt – Thanks Bob, Walt Arnold 256-1255, web site waltarnold.com. Also you can follow me on Twitter @waltarnold or like us on Facebook for daily ABQ CRE news updates. If you have any questions regarding commercial real estate give me a call. Bob have a great week, talk to next week.
CRE Report 04.02.2012
April 2, 2012 at 11:54 am | Posted in Radio Show Reports | Leave a commentTags: Aerotropolis, air travel, airports, albuquerque, Albuquerque air travel, Albuquerque Commercial Real Estate, cities, CRE, development, GDP, infrastructure, mesa del sol, southwest airlines, sperry van ness, urban, urbanize, walt arnold, wright law
Aerotropolis – The future of cities
Bob – Walt, Todd Clarke talked about the Aerotropolis event, you were there, and can you give fill us in on what he talked about?
Walt – Greg Lindsay the author had a lot to say about what’s ahead for the cities of the world.
One interesting point he discussed was the strength of cities, as they get larger. He drew an analogy that larger animals are not more efficient than smaller animals, for example the elephant is not more efficient than a mouse. But for cities the larger they get they better they get. Cities prosper more as they increase in size and population. And what do larger cities have, they have more amenities and a greater network effect. Large cities feed on themselves and the larger cities will continue to prosper. 
Bob, here is an amazing statistic about the top 100 cities in the world. The top 100 cities produce 33% of the World’s GDP. The top 600 cities in the world produce 66% of the World’s GDP. The world is now 50% urbanized. The US is currently 80% urbanized so this trend of larger cities is going to continue.
Bob – So what is the story with the title of the book Aerotropolis? What is the link to air travel?
Walt – Just as major cities were once built around ports, or railroads, the future world cities will be built around air travel. The ability to ship by air and to get anywhere in the world quickly will be key for the future of cities. And not all of those cities will be large cities; some smaller cities will also have success in the future air travel of the Aerotropolis.
Bob – What were his thoughts on Albuquerque?
Walt – Well, we weren’t on any of his slide or any lists that he talked about. But he did talk about Mesa Del Sol and how it is an example of how cities and developments will need to be constructed in the future. Close to air travel, great infrastructure for connectivity, which Mesa del Sol has and creating a sense of place and connection.
One concern he spoke about was the Wright Law that controls some of Southwest’s flights connections out of Texas and when that law expires it could have an effect on Albuquerque air travel.
Bob – How can people get a hold of you to talk about commercial real estate?
Walt – Thanks Bob, Walt Arnold 256-1255, follow me on Twitter and become fans with us on Facebook for daily CRE news updates in ABQ and around the globe . One last thought, Lindsay talked about how great cities have a sense of place and a quality of life. If ABQ can develop a strong sense of place and reason for people to be here, we will be fine. We need to find our comparative advantage, we need to improve our educational system and need to figure out a way to capitalize on our strengths especially cooperation with Sandia and Los Alamos. If we can do these things we will be a great city and a great place to own commercial real estate.
CRE Report 02.12.2011
February 13, 2012 at 9:30 pm | Posted in Market Reports, Radio Show Reports | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, CRE, Grammys, industrial, Industrial report, industrial summary, market, market report, office, office market, office report, office summary, Reid Associates, sperry van ness, Titan Development, vacancies, walt arnold
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 White Paper
February 6, 2012 at 12:22 pm | Posted in Whitepapers | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, asset, Balance Sheet, CRE, CRE White Papers, financing, Getting YOur Property Financed, Income Statement, Mortgage, mortgage rates, opportunities, recession, White Papers
Getting your property financed
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CRE Report for 01.22.2012
January 23, 2012 at 12:39 am | Posted in Market Reports, Radio Show Reports | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, for lease, holdover charge, Lease, Lease Expiration, month to month. hold over penalty. lease rates, sperry van ness, tenant, tenant representation, walt arnold
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.
Albuquerque CRE Report for 01.09.12
January 9, 2012 at 10:35 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, Buy, CRE, investment, investors, Lease, leased space, New Years Resolutions, opportunities, radio show, real estate, Sell, sperry van ness, tenant, tenants, walt arnold
New Year strategies for commercial properties investors, owners, buyers and tenants
Bob – Happy New Year! Our first commercial report of 2012, what do you have for us to start off the New Year!
Walt – Happy New Year Bob and I hope you had a great time over the Holidays and the New Year.
I know you’re not a big New Year Resolutions advocate, but I wanted to talk about some New Year strategies for commercial properties investors, owners, buyers and tenants of commercial properties.
Bob – New Years Resolutions are difficult to keep and it is difficult for people to keep them. But I’ll listen, what ideas do you have?
Walt – I think this is a great time for those involved in commercial properties to make some strategies and take some action to move forward on financial goals, which may include real estate.
Some quotes I remember are, “every journey begins with a single step”, or “if you aim at nothing you are bound to hit it”. A question to ask this time of year is, “what is my exit strategy for the properties I own”, or “what can I do today to start looking at investing in commercial real estate”?
Those answers might not even come this year, but it’s important to start thinking about them now and develop the steps to move forward in that direction.
Bob – I would think this is not a great time to sell properties, but it appears to be a better time to buy properties. How far in advance do someone need to start thinking about buying, selling or leasing?
Walt – There are many aspects to consider, for example a business that owns it real estate might say, “I need to raise some cash, but my bank won’t lend me any money”, a sale-leaseback might be a way to raise some cash and put cash back in the business to fund operations.
An investor just starting out might have the question,” how do I start investing in this market with all this opportunity to buy properties?”
A company currently leasing might ask, “I want to buy instead of lease, what do I need to know to get started?”
All of these decisions take time and planning.
Bob – So you’re saying there are a lot of things to consider and it might happen quickly or it could take time to develop a plan to decide what to do and how to go about it?
Walt – These aren’t snap decisions like, I need to lose 20 pounds, which by the way I do, these decisions take time and it helps to have people that can help define the strategies and a game plan to work through the issues and come up with solutions to accomplish these goals.
Bob – Walt, how can people get a hold of you to discuss how to make a strategic plan for 2012 and beyond?
Walt – Thanks Bob, my direct line is 256-1255, website waltarnold.com. Let’s talk about strategy for 2012 and beyond. You can connect with me on Facebook or Twitter.
CRE Report 12.19.2011
December 20, 2011 at 9:13 am | Posted in Market Reports, Radio Show Reports | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, Budgeting, CRE, expenses, investment, investment property, maintenance, property expenses, Property Owners, Real Estate Budget, sperry van ness, walt arnold
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 commentTags: Albuquerque Commercial Real Estate, Albuquerque Construction, Albuquerque Retail Market, Black Friday Sales, construction industry, Journal Center, market report, REDW building, sperry van ness, unemployment, Unemployment Rate, walt arnold
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.
SIOR Conference
November 21, 2011 at 6:30 pm | Posted in Radio Show Reports, Videos | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, Bank Owned CRE, Chicago, distressed assets, investment, market report, opportunities, SIOR, sperry van ness, walt arnold
CRE Video Report 10.27.11
For more information on SIOR check them out on the web here. For all topics CRE follow me on Twitter or find me on Facebook today.
Walt Arnold, SIOR, CCIM
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