CRE Report 04.23.12

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

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 04.02.2012

April 2, 2012 at 11:54 am | Posted in Radio Show Reports | Leave a comment
Tags: , , , , , , , , , , , , , , , , ,

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 09.10.2011

September 19, 2011 at 10:03 am | Posted in Market Reports, Radio Show Reports | Leave a comment
Tags: , , , , , , , , , , , , , ,

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.

Create a free website or blog at WordPress.com.
Entries and comments feeds.