CRE Report 03.12.2012

March 12, 2012 at 11:50 am | Posted in Radio Show Reports | Leave a comment
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Where are all the jobs?

Bob – Walt you mentioned attending the Urban Land Institute Luncheon last week and some of the interesting trends they talked about, can you tell us about some of those trends.

Walt – Yes thanks Bob, good morning. Urban Land Institute presentation discussed some trends that will affect commercial real estate.  One trend that is developing is “Less is Better”. Tenants and owners are beginning to squeeze more out of every square foot of space in every type of commercial space. This efficiency means less square footage, but it also is about creating environments that are multi-dimensional, adaptable and create a greater intensity of use.

What does that mean?  It means we are going to see office and commercial space that aligns itself with this work from anywhere, at anytime, 24/7 workforce and we will see changes in spaces that start to reflect this change in mobility and adaptability more and more.

Bob – The name of the presentation is” Where the Hell are the Jobs” (NOTE–Soften it if you want).  Did you get an answer?

Walt – The world is obviously getting smaller and we have seen globalization of capital, instant technology and labor.

Workers will need college education with degrees for New Mexico to gain substantial job growth in this new economy. We are competing with 49 other states for global markets.

The majority of jobs are going to be in Medical, Education, Healthcare, and customized manufacturing.   Meds and Eds is a phrase you will start to hear more often.

So for real estate investors, commercial buildings with those types of tenants are going to be less risky and hopefully more profitable.

Bob – Anything else for us today?

Walt – For all the Boomers get ready for extended employment! 40% of Boomers say they don’t have enough money to retire. So Bob, make sure you take care of that golden voice of yours, you might need it a while!

The Boomers are going to ramp up Senior Housing requirements for the next several years and Albuquerque has already seen strong growth in the Senior Housing and Assisted Living markets.

With declining home ownership rental-housing demand will continue to grow and the demand for rental units will remain strong for the next few years. Think about stricter mortgage requirements, more waves of foreclosures and many families rethinking the costs of home ownership will keep the demand for apartments strong.

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

Walt – Thanks Bob.  Call me, Walt Arnold at 256-1255, become a fan on Facebook, follow me on Twitter or visit my website waltarnold.com for current listings in the Abq area.  Sperry Van Ness is a full service commercial real estate company helping Landlords and Tenants solve space and lease requirements, investors maximize their cash flow and rates of returns through investment in commercial properties and through our professional property management we help owners maximize cash flows and preserve assets. Hey Bob, happy first Monday of daylight savings time. I’ll talk to you next week.

Photo Credit http://usdailyreview.com/tag/unemployment

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 – Commercial Transactions on the Rise at SVN.

September 12, 2011 at 10:10 am | Posted in Market Reports, Radio Show Reports | Leave a comment
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Bob – Walt, what is happening in the world of commercial real estate this week?

Walt – Good morning Bob, the market appears to have a little more traction.  We are getting a little more interest from buyers and tenants and more general activity in calls and on our listings and from customers looking for space. There does appear to be a slight uptick in the market and hopefully it will continue.

Bob – You mentioned to me your company Sperry Van Ness has had some recent deals.

Walt – Yes we have, we had a sale of a 12,000 square foot building on San Mateo to an investor, which is good news, Ed Anlian in our office, had a sale of an office building on Montgomery, we had a long term lease of a 20,000 square foot building on San Mateo and also represented a full floor financial services firm in a building in Uptown and not enough time to mention numerous other transactions.  So as I said earlier the market does appear to be gaining a little traction.

Bob – So what do you think is changing in the activity level? Are banks starting to loosen up their ability to fund these deals or is it something else?

Walt – It is difficult to tell.  Activity in the commercial real estate market is like swells in the ocean and sometimes those swells just come in a little closer to each other and little higher. So we need to watch this and hopefully it will be a trend that will continue.

Bob – What else do you have today?

Walt – Bob thanks, I would be remiss is I didn’t talk a little about the World Trade Project in NYC.   This project is going to be a fantastic development.  1 World Trade Center will rise to a height of 1,362 feet, the height of the original WTC South Tower, an observation deck will be added that will be the same height of the  original WTC North Tower and finally an illuminated antenna will rise to a symbolic height of 1776 feet.

The other buildings slated for the development are Tower Two-78 stories, Tower Three-71 stories and Tower Four-61 stories.  All of these building will have state of the art life and safety features with great amenities and architectural presence. There will be two new transportation hubs (WTC Transportation Hub and Fulton Transit Center together serving over 500,000 passengers per day.

Along with all the structures is the Memorial, the two pools and cascading water features located on the footprints of the original two towers will honor the 2,983 victims of 9/11.  Out of the ash and rubble rises an incredible project for the ages.

Bob – Thanks Walt, how can people get a hold of you?

Walt – Thanks Bob, call Walt Arnold at 256-1255, website waltarnold.com find me on Facebook or follow me on Twitter also.  Bob, we have a lot of reasons today to be proud and thankful.  Have a great week!

CRE Report 06.27.2011 – Opportunities in the Market & Information on Loan Sales

June 27, 2011 at 10:02 am | Posted in Market Reports, Radio Show Reports | Leave a comment
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Bob – Walt as we head into the dog days of summer, what’s in store for commercial real estate?

Walt – Good Morning. Commercial real estate has been in some dog days for some time.  It appears that the office, industrial and retail markets will continue to limp along for a while.  Although there have been some upticks here and there, without the availability of capital sources or money and the slow employment recovery, those dog days might not go away for a while.

Bob – What are the opportunities in this market?  There must be some areas that could be an opportunity to purchase.

Walt – Most buyers are looking for one thing and that is distressed assets.  And with that mind set there remains a gap between what buyers are willing to pay and sellers are willing to sell and that gap has been difficult to bridge in this market.  So to answer your question there are opportunities and it is in distressed properties.  The other opportunity we are starting to see more of is seller financing.  Sellers are becoming more willing to finance the property in order to complete the sale so that removes the financing issues.

Another area to think about is the loan sales market.  Sperry Van Ness and Benewolf Loan Sales Advisors have created a unique partnership in the sale and purchase of commercial loans. The loan sales market is becoming an active market across the country.

Bob – You don’t hear about loan sales very often. What is different about buying a loan and why would someone want to purchase a loan.

Walt – One of the main differences is that it is a cash transaction usually purchased a discount but not always. Loans are purchase for several reasons mostly for yield or a return on the cash investment or to eventually acquire the property through foreclosure.  So it is an opportunity but requires sophistication in analyzing the borrower and the property.

Bob, I also wanted to mention another strategic partner of Sperry Van Ness and that is with RW Kline a loan workout company.  A loan workout specialist can be a strong advocate in negotiating with a lender, so another couple of reasons to choose Sperry Van Ness as your commercial real estate company.

Bob – Walt how can people get a hold of you to discuss commercial real estate?

Walt – Thanks Bob, call Walt Arnold at 256-1255, website waltarnold.com.  If it involves commercial real estate, Sperry Van Ness has an extensive tool box along with the brokers to handle any type of commercial real estate transaction.  Bob have a great and safe 4th of July.  I’ll talk to you soon.

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