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 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.
CRE Report – Commercial Transactions on the Rise at SVN.
September 12, 2011 at 10:10 am | Posted in Market Reports, Radio Show Reports | Leave a commentTags: 9/11, Albuquerque Real Estate, Albuquerque Real Estate News, Bank Owned CRE, economy, market report, opportunities, radio show, Real Estate deals, Real Estate Transactions, walt arnold, World Trade Center
Bob – Walt, what is happening in the world of commercial real estate this week?
Walt – Good morning Bob, the market appears to have a little more traction. We are getting a little more interest from buyers and tenants and more general activity in calls and on our listings and from customers looking for space. There does appear to be a slight uptick in the market and hopefully it will continue.
Bob – You mentioned to me your company Sperry Van Ness has had some recent deals.
Walt – Yes we have, we had a sale of a 12,000 square foot building on San Mateo to an investor, which is good news, Ed Anlian in our office, had a sale of an office building on Montgomery, we had a long term lease of a 20,000 square foot building on San Mateo and also represented a full floor financial services firm in a building in Uptown and not enough time to mention numerous other transactions. So as I said earlier the market does appear to be gaining a little traction.
Bob – So what do you think is changing in the activity level? Are banks starting to loosen up their ability to fund these deals or is it something else?
Walt – It is difficult to tell. Activity in the commercial real estate market is like swells in the ocean and sometimes those swells just come in a little closer to each other and little higher. So we need to watch this and hopefully it will be a trend that will continue.
Bob – What else do you have today?
Walt – Bob thanks, I would be remiss is I didn’t talk a little about the World Trade Project in NYC. This project is going to be a fantastic development. 1 World Trade Center will rise to a height of 1,362 feet, the height of the original WTC South Tower, an observation deck will be added that will be the same height of the original WTC North Tower and finally an illuminated antenna will rise to a symbolic height of 1776 feet.
The other buildings slated for the development are Tower Two-78 stories, Tower Three-71 stories and Tower Four-61 stories. All of these building will have state of the art life and safety features with great amenities and architectural presence. There will be two new transportation hubs (WTC Transportation Hub and Fulton Transit Center together serving over 500,000 passengers per day.
Along with all the structures is the Memorial, the two pools and cascading water features located on the footprints of the original two towers will honor the 2,983 victims of 9/11. Out of the ash and rubble rises an incredible project for the ages.
Bob – Thanks Walt, how can people get a hold of you?
Walt – Thanks Bob, call Walt Arnold at 256-1255, website waltarnold.com find me on Facebook or follow me on Twitter also. Bob, we have a lot of reasons today to be proud and thankful. Have a great week!
CRE Report for 08.22.2011
August 22, 2011 at 10:07 am | Posted in Radio Show Reports | Leave a commentTags: construction, construction cost, CRE investments, economy, Investing, investing in commercial real estate, rising construction cost
Good Construction News and Investing in Commercial Real Estate
Bob – Walt, what is going on in the commercial real estate world?
Walt – Good morning Bob! I wanted to give a little perspective from our SIOR NM chapter meeting last week and what’s happening with some local businesses that are directly tied to commercial real estate in this market and fortunately it’s somewhat refreshing.
On the construction side, Dave Doyle of Enterprises Builders said they are busy, although the size of the work is less than what it used to be, the work under half a million dollars is active. Dave said construction costs today are at 2005 levels.
One area Dave talked about was the costs of construction materials. Copper, sheetrock and metal are all still at high levels.
So there is construction going on in our local market, not necessarily new buildings but there is construction work.
Mike Kelly, a commercial lender said he will do more loan volume in the next few months than he did in the last 2 years. Interest rates remain low and there is movement in the lending market and lenders are starting to get back in the game.
So that is a little good news for Monday morning.
Bob – Walt, with the significant up and downs in the stock market, investors must be thinking about moving in back into real estate as an investment vehicle. Are you starting to see that in your business?
Walt – With money market rates at .02 percent, commercial real estate is an investment that is definitely worth considering. There are going to be some great opportunities in real estate. With professional advice from a CRE broker like the brokers at Sperry Van Ness we can help investors make the right choices in analyzing and acquiring the commercial real estate, manage the asset (if necessary) and develop an exit strategy to sell the asset at the right time.
Bob, 10 year treasuries are at 3%. Pre tax yields for real estate, on average are currently at almost 10% and the opportunities to invest in real estate are continuing to show themselves.
So give me a call and let’s develop a plan to capitalize on the commercial assets coming to market.
Bob – How can you help people with the risks associated with purchasing commercial real estate? There are still risks that investors have to deal with in this market.
Walt – There are risks and that is why it is important to go through a process to determine how much risk a person wants and put together a plan to analyze the risk, to evaluate the preferences in property type (office, industrial, retail multi-family, self storage, land, hotel motel) and that’s where Sperry Van Ness has the tools, experience and brokers to help through the process.
Bob – How can people contact you?
Walt – Thanks Bob, Walt Arnold 256-1255, waltarnold.com also visit me on Facebook or Twitter. Thanks Bob have a great week.
Getting Your Property Financed – Being Capital Market Savvy in a Down Economy
April 18, 2011 at 3:05 pm | Posted in Whitepapers | Leave a commentTags: capital, economy, finance, financing, Markets, Rates, REO
Get Your Property Financed
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