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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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.
CRE Report 10.17.2011
October 31, 2011 at 10:13 am | Posted in Market Reports, Radio Show Reports, Videos | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, Albuquerque Tenant Rep, CRE, hold over period, Lease, Lease negotiations. For Lease, negotiation, penalty, radio show, REO, sperry van ness, tenant, tenant representation, walt arnold
Lease Negotiations
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CRE Report 10.10.11
October 13, 2011 at 9:52 am | Posted in Radio Show Reports | Leave a commentTags: 2007 property values, Christopher Columbus, Columbus day, Commercial Real Estate News, CRE, Investing, investing in commercial real estate, investment, investment options, property values, real estate advice, Real Estate Investing, real estate values, retirement, sperry van ness, walt arnold
Columbus Day Investing Advice
Bob – Walt what is going on in the commercial real estate world?
Walt – Good morning Bob! Happy Columbus Day! Christopher Columbus was born in a middle class family in Genoa, Italy. He had a passion for navigation and sailing as a young man and traveled extensively visiting Africa and the Mediterranean. Columbus spotted land on October 12th, 1492, which became the discovery of the New World. He also continued to sail to the Americas and eventually made four trips to the Americas ending with his final voyage in 1502.
That is just a little Columbus Day trivia, Bob. It is interesting to note Columbus’s perseverance in talking to the right people and trying to put together the right deal to help him accomplish his vision.
Which is a lot like real estate investing. You have to have a plan, you need to be committed to the plan and you have to see it through. There will be some rough times but if you execute the objectives carefully the rewards could be great.
Bob – Walt, but Columbus had some failures. He had a hard time selling his plan to Kings, Queens and countries until Spain said yes to him, he had to abandon the Santa Maria when it ran aground, he had a tough time as a governor in the New World and he spent a year in Jamaica after his ships rotted.
Walt – You know your history and yes he did have some failures but he was in the right place at the right time. And that brings me back to commercial real estate. The discovery of America would certainly have taken place within a short time span from 1492. It’s all about timing!
With investments in commercial real estate it is so much about timing, and now is the time to consider investing in commercial real estate. Values are down significantly from the 2007-2008 highs. There is an opportunity in this market to acquire outstanding values in real estate, but you have to have a plan. It is similar to Columbus, he had a vision for what he wanted to happen and he pursued it with great passion. Did he have some up and downs, sure he did but he kept his focus and today we celebrate his day, Columbus day.
Bob – Walt hat else do you have for us and how can people get a hold of you today?
Walt – Thanks Bob, call Walt Arnold at 256-1255 or check us out on the web at waltarnold.com. At Sperry Van Ness we have the experience and resources to help you navigate these difficult Commercial real estate waters to help people find great values in today’s commercial market. Give us a call and we can set up an appointment to show you how. Thanks for the time today Bob, have a great week.
CRE Report 09.10.2011
September 19, 2011 at 10:03 am | Posted in Market Reports, Radio Show Reports | Leave a commentTags: Albuquerque Commercial Real Estate, construction, CoStar, CoStar Quarterly Reports, CRE, demand, development, economy, new construction, Quarter Report, radio show, rent rates, retail, retail market, vacancies
Retail 2nd Quarter Rap Up
Bob – Walt, you wanted to talk about the retail market today. What do you have for us?
Walt – Good Morning Bob. I was just reviewing the 2nd quarter retail numbers from CoStar and here are some of those numbers. The overall retail vacancy rate has increased slightly to 6.8%. Average quoted rental rates decreased from the first quarter to $13.58 per square foot per year. 86,000 square feet of space was still under construction at the end of the quarter.
Bob – Can you give us some details on Tenants in the market, who’s moving out and who’s moving into spaces?
Walt– There hasn’t been a lot of movement. Murray Billiards moved out of 8,820 square feet at 10020 Coors Bypass, Elyte ATM vacated 7,600 square feet at 8900 Menaul.
Some tenants moving in were Firestone into 17,362 square feet at 2631 Coors, ATI moving into 14,640 square feet at Montgomery Plaza and El Mezquite occupying just over 14,000 square feet on Southern. Tomato Café signed a lease for 6,000 sf at the Shops at Montano and Aaron Rents leased 5,600 sf at Guadalupe Plaza.
Bob – We usually talk about construction on these quarterly reports, are there any new projects coming out of the ground?
Walt – There was 117,000 square feet of new construction; some notable construction deliveries include the Premier Cinema, 86,000 square feet in Rio Rancho and the Firestone on Coors.
Just a few trivia numbers for you, CoStar tracks the Albuquerque market with 56 million square feet of retail space in about 5,300 buildings, including 359 shopping centers. You just never know when you might need that information!
Bob – Walt, what is your crystal ball projecting for the retail market in the near future and what are the prospects for retailers this Holiday Season, which is approaching quickly?
Walt – It appears the retail market forecasters are saying the retail market will be rockier than expected for recovery over the next 12 months. Statistics are pointing to a gradual recovery but; weak hiring, a flat housing market and sagging consumer and investor confidence are hampering the retail recovery.
Bob – Walt, how can people get a hold of you to talk about commercial real estate?
Walt – Thanks Bob, Walt Arnold at 256-1255, our website is waltarnold.com. If you’re considering buying, selling, leasing, tenant representation or property management in today’s commercial real estate market, give us a call at Sperry Van Ness. We know how to navigate this difficult market. We do it every day and we do it very well. Let’s get together and discuss the Sperry Van Ness Difference in commercial real estate.
Bob thanks for the time today, have a great week.
Walt Arnold, SIOR, CCIM
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