CRE Report 04.23.12

May 14, 2012 at 9:31 am | Posted in Radio Show Reports | Leave a comment
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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

Photo credit: http://www.hgpauction.com/index.php/sector-experience/heavy-equipment-auctions

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 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

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