CRE Report 06.28.12

June 28, 2012 at 10:11 am | Posted in Uncategorized | Leave a comment
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Albuquerque Retail Forecast

Bob – Walt last week you spoke about the office and industrial markets. Can you give an update on the retail market?

Walt – Good morning Bob, The retail market remains robust, although a lot of the movement is a lateral move, meaning a tenant is relocating from another property in the metro area from one property to another.  With virtually no new construction, if the market continues on its upswing of activity, the vacant space will get filled quickly and with little new construction on the horizon, the retail market could get very interesting as demands gets stronger.  This might be a welcome site for landlords as they will be able increase rates.

Bob – Target is building its property in Uptown.  Are there any other “Big Box” projects planned in the metro area?

Walt – The target property is a 165,000 square feet building and will transform the intersection of Indian School and Louisiana, but as far as other “Big Box” users, we are probably unlikely to see any entering the market in 2012.

When I look at the retail numbers for the first quarter of 2012, the vacancy rate fell to 12.5%, down from last quarter and also down from a year ago. The overall median asking rate is $13.50, but that median number includes everything from small shop space to ABQ Uptown so location of the retail store is crucial when determining the lease rate. The rate could be from $5.00/SF/NNN in small community centers to $45.00/SF/NNN in ABQ Uptown. The rates are based on location, traffic and the condition of the center.  Some of the notable deals were Dick’s Sporting Goods, 49579 at Cottonwood, a 14,800 square foot strip center on the Paseo Corridor a 4,287 square foot freestanding restaurant at Montgomery Plaza.

So Bob, the retail market is slowly filling up the supply of vacant space, which will increase demand for retail space, which will create interest from developers to assess the possibilities of constructing new retail space and the demand will cause landlords to push the envelope on rates.  The real estate cycle continues.

Bob – Walt how can people get a hold of you to discuss Commercial Real Estate?

Walt – Thanks Bob, Call me 256-1255 my website is waltarnold.com follow me on twitter @waltarnold.  If you’re looking to purchase office, industrial, or retail properties give me a call to discuss your real estate requirements.  Sperry Van Ness is a national commercial firm with 160 offices across the country. We position buyers, sellers, landlords and tenants to make great choices in commercial real estate. Give me a call to discuss the Sperry Van Difference.  Thanks Bob, have a great week.

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.

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