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.
Albuquerque CRE Report 02.19.12
February 22, 2012 at 10:29 pm | Posted in Market Reports, Radio Show Reports | 1 CommentTags: albuquerque, market, market report, retail
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 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
For daily CRE news visit us on Facebook or Follow me on Twitter.
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 11.21.2011
November 28, 2011 at 12:37 pm | Posted in Market Reports, Radio Show Reports | Leave a commentTags: albuquerque, Albuquerque Economy, Albuquerque Real Estate, CRE, economy, Government Jobs, jobs, market report, NAIOP, New Mexico Real Estate, rent rates, SIOR, sperry van ness, ULI, unemployment, vacancies, vacancy rate, walt arnold
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.
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
Blog at WordPress.com.
Entries and comments feeds.
Albuquerque Commercial Real Estate News 