CRE Report 09.27.2011
September 27, 2011 at 11:21 am | Posted in Market Reports, Radio Show Reports, Videos | Leave a commentTags: Advice, Albuquerque Commercial Real Estate, construction industry, Construction News, investment, investments, investors, market report, opportunities, real estate, recession, SIOR, sperry van ness
End of Summer CRE Summary Video
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Commercial Real Estate Report 04.04.11 – Trifercation
April 23, 2011 at 9:35 pm | Posted in Radio Show Reports, Videos | Leave a commentTags: Commercial Investments, Commercial Real Estate News, investments, Markets, Trifercation, walt arnold
What is “Trifercation?”
Albuquerque Commercial Real Estate Report 7.26.10: Hiring A CRE Broker
August 19, 2010 at 10:07 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, broker's opinion of value, commercial, CRE, economy, for lease, for sale, industrial, investments, leased space, listings, New Mexico, office, office market, opportunities, property, property management, property values, radio show, real estate, retail, sperry van ness, tenant representation, walt arnold
Click HERE to listen to the Commercial Real Estate Report for 7-26-10!
Bob Clark, News Radio 770 KKOB: Walt, if I needed to hire a commercial real estate broker, what skills and abilities would I look for in that person?
Good morning. Commercial real estate is so different from residential real estate and there are just so many more moving parts to the commercial business which includes office, industrial, retail, hospitality, self storage and apartments. There is the investment side; the owner user and also the leasing end of the business and each have their own intricacies. So first off you would want to make sure the broker is an expert in the field of commercial real estate you need. That is the first criteria.
Bob Clark: What else is important in selecting a commercial broker?
Having a level of experience which might include membership in either the CCIM Institute, which requires years to complete the certification process or an SIOR, a select group of 2,800 commercial brokers worldwide is an important component in selecting a broker to work with.
At Sperry Van Ness we talk about having encyclopedic market area knowledge and stress being the recognized expert in the market area. Someone looking for a broker wants to make sure they understand the market and have strong knowledge of it.
Another important trait is a broker that listens to your needs and assesses those needs and then works diligently to complete the transaction and keeps everyone apprised of the progress as it moves toward the completion
Bob Clark: Walt you have talked before about all the parts of the commercial transaction, how can a broker help put it all together?
There are many parts to the puzzle of a commercial transaction and making sure your Broker understands those pieces, like the ALTA survey, Phase One environmental report, space planning, financing, the lease document, the Tenant Improvement process including TI drawings dealing with architects, contractors, attorneys, owners and tenants requires someone with many skills to help analyze the commercial transaction from start to finish and beyond. Continue Reading Albuquerque Commercial Real Estate Report 7.26.10: Hiring A CRE Broker…
Whitepaper: Getting Your Property Financed
August 12, 2010 at 9:30 am | Posted in Whitepapers | 2 CommentsTags: acquisitions, asset, banks, capital, commercial, CRE, demand, economy, equity, financing, investment, investments, investors, liquidity, listings, market, opportunities, property, property values, real estate, recession, walt arnold, white paper
I rarely have a conversation these days where the topic of financing doesn’t arise as a serious concern for my clients. When the economy is robust, and the capital markets are frothy, financing a commercial real estate transaction is a relatively simple matter. However during today’s recessionary times, the commercial capital markets are severely constrained. Not only is the supply of capital tight, but the demand may be near all time highs as well. Depending on which industry source you quote there is between $150 and $200 billion dollars of CMBS debt maturing in 2009 alone. This figure doesn’t include maturing loans from insurance companies, banks and other lenders, which means that many borrowers will be forced to secure financing in a market that presently offers little liquidity.
Given the current lack of liquidity and financing options described above, only the savviest of sponsors with solid projects will be receiving attention from lenders and investors. In the text that follows I’ll provide you with an overview of the information you need to possess in order to speak fluent finance and to increase the odds of getting your project financed.
The first thing to keep in mind is that financing serves multiple purposes beyond rate and term considerations. The proper financing strategy can allow you to increase project velocity, improve operating efficiency, conserve internal capital, increase leverage, and lower the overall cost of capital. Good sponsors focus on developing an integrated capital formation strategy
Continue Reading Whitepaper: Getting Your Property Financed…
Albuquerque Commercial Real Estate Report 7.12.10: Retail Markets
July 21, 2010 at 9:40 am | Posted in Radio Show Reports | 1 CommentTags: acquisitions, albuquerque, asset, Auction, banks, CRE, economy, for sale, industrial, investments, leased space, listings, market, market report, New Mexico, opportunities, property, real estate, retail, sperry van ness, tenant, walt arnold
>>> Click here to listen to the Commercial Real Estate Report 7-12-10 <<<
Bob Clark, News Radio 770 KKOB: Walt you had a few things to talk about today. What do you want to start with?
I wanted to talk a little about the retail market which took a cautionary track in June. Although sales numbers were mixed, consumers just aren’t stepping up and spending at the pace retailers expected. This news is part of a larger downshift as consumer confidence slumped last month and consumer borrowing also fell.
Unfortunately the bounce back retailers were hoping for is not happening. So retailers are still in for a tough road.
Bob: You also had some economic news from Sperry Van Ness you wanted to discuss.
Yes, Sam Chandan, an economist had some interesting information last week.
What he said is that there is a lag when the underlying conditions begin to improve and although the recession is technically over, it sure doesn’t feel like it and the main reason is the Labor markets still remain challenged.
We have had growth in the labor markets for 6 months in a row. So, technically we are coming out of this recession better than the 2001 recession, but it is going to take some time for the fundamentals to improve and show meaningful improvement in commercial real estate properties. Continue Reading Albuquerque Commercial Real Estate Report 7.12.10: Retail Markets…
Lender Ordered Auction: Commercial Real Estate Industrial Warehouse Albuquerque, New Mexico
July 19, 2010 at 8:47 am | Posted in Property Listings | 4 CommentsTags: acquisitions, albuquerque, asset, Auction, commercial, CRE, for sale, investment, investments, leased space, listings, market, New Mexico, office, opportunities, property, real estate, sperry van ness, walt arnold, warehouse
9920 & 10000 Trumball SE, Albuquerque, New Mexico | View Google Map!
Auction Date and Time
August 5, 2010 @ 11:00 AM
Public Inspection Date and Time
July 29, 2010 11:00 AM – 1:00 PM
• Well maintained industrial flex space consisting of two legal separate buildings that have been joined to create one structure.
• 19,757 +/- square feet of useable warehouse space
• Built in 1970
• Zoned M-1
• Improvements sit on 1.06 +/- acres
• 6 Ground Level Doors
• Excellent location – just blocks from Central Avenue
• In close proximity to Interstate 40
• 154 miles from Kirkland Air Force Base
• Foreclosed Lender orders Nationwide Portfolio Liquidation – Buy Now at Your Price!
• Offers considered pre-auction, Seller Financing Available to qualified buyers
• No Back Taxes & No Liens – Clear Title with Title Insurance Provided! Continue Reading Lender Ordered Auction: Commercial Real Estate Industrial Warehouse Albuquerque, New Mexico…
Albuquerque Commercial Real Estate Report 6.21.10: Retail Markets
June 24, 2010 at 5:02 pm | Posted in Radio Show Reports | Leave a commentTags: albuquerque, asset, bid/ask, commercial, CRE, economy, for lease, investments, leased space, market, market report, real estate, recession, retail, single tenant, tenants, triple net lease
>>> Click here to listen to the Commercial Real Estate Report for 6-21-10! <<<
Bob Clark, News Radio 770 KKOB: Walt you wanted to talk about the retail market, what do you have for us?
The retail market is trying to get up off canvas. It has been knocked down by the one-two punch of the credit crisis and the weak economic recovery. In 2007 retail investment sales across the country were 78 Billion, in 2009 retail investment sales slid to 17 Billion.
Retail investment activity has increased slightly this year both in supply of properties available and buyer interest.
One part of the buyer interest is a narrowing of the bid/ask gap in pricing, which is critical to get properties listed and sold. And there have been some reports of regional banks and credit unions opening up lending for the right asset. The flow of capital is crucial.
Bob: What will it take for retail investment sales to improve and what is it going to take to get the retail market out of its current condition?
The economy is going to have to improve significantly. That said one area that is starting to show some signs of life are the single tenant triple net leased properties. One key factor is that buyers are now looking for stability and cash flow. So this is a good sign for the retail investment market although a small one. As I said one group of investors is the triple net buyer; the other is the optimistic buyers looking for distressed assets.
And it could be a while before the distressed assets are dealt with by lenders either through foreclosure or loan restructuring of those assets. According to Real Capital Analytics 41.7 billion in Continue Reading Albuquerque Commercial Real Estate Report 6.21.10: Retail Markets…
Albuquerque Commercial Real Estate Report 6.7.10: Back to Basics
June 12, 2010 at 7:13 am | Posted in Radio Show Reports | Leave a commentTags: 575 program, accelerated marketing, albuquerque, commercial, CRE, economy, headlines, investments, investors, market, market report, online publishing system, opportunities, property expenses, property income, radio show, real estate, recovery, sperry van ness, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 6-7-10! <<<
Bob Clark, News Radio 770 KKOB: Walt, you wanted to talk about the conflicting commercial real estate market. What is going on?
Bob, it seems like when I read the paper there is a lot of contradictory information. One headline reads “Pending Sales Up”; the next says “Foreclosures could delay real estate recovery.” Another headline is “Buyers are waiting to buy”, followed by “Retail growth shows recovery.”
These times are the most confusing and conflicting times ever experienced in commercial real estate.
Bob: What are some of the reasons this commercial market is struggling so much?
Normally we see the market go through cycles with definitive peaks and valleys, but this time there are so many other things happening simultaneously in the economy like significant job losses, banking instability, poor retail spending, increasing government deficits and the collapse of residential real estate market and new home construction. All of these continue to put commercial real estate issues on the bottom of the pile.
Bob: So what are some steps commercial property owners and tenants can take to make sure they are making the right choices in this market?
This recovery is going to take some time and I believe it is crucial for people to focus on the fundamentals. Investment property owners and buyers need to get back to analyzing, the income and expenses of a property and work at good tenant relations, keeping tenants to protect the investment. For companies it is the same message, manage costs and get efficient in order to survive which includes looking at some lease options.
So the next few years are back to basics, grinding it out and looking for opportunities. I guess a football analogy would be the passing spread offense with all its bells and whistles is out and it’s back to plodding along, three yards and a cloud of dust. It might not be pretty but it is effective and keeps you in the game.
Bob: Anything else today and how can people contact you?
Bob, at Sperry Van Ness we have the programs, systems and most importantly the brokers to help people sell properties and make good decisions through either our proprietary Online Publishing System, our Accelerated Marketing team or our 575 program. Call me to discuss these programs and let me tell you about the Sperry Van Ness Difference. My direct line is (505) 256-1255; check us out on the web at waltarnold.com. We specialize in commercial sales, leasing, property management and tenant representation. Thanks Bob and have a great week.
Investment Opportunity: Corrales Overlook Office Condos
June 5, 2010 at 9:07 am | Posted in Property Listings | Leave a commentTags: commercial, condos, investments, leased space, listings, New Mexico, office, office condos, office market, office park, opportunities, real estate, rio rancho, tenants, walt arnold
Corrales Overlook Executive Plaza
1350-1400 Jackie Road SE, Rio Rancho, NM
• Attractive Office Park w/Condominium Units for Sale/Lease (See brochure below)
• Land Size: ±1.88 acres
• Total Bldg. Size: Bldg. 1: ±11,196 sq. ft., Bldg.2: ±12,204sq.ft., Bldg. 3: ±11,196 sq. ft SOLD, Total: ±23,400 sq. ft.
• Sale Price: $145/sq. ft. NOW $119/sq. ft. (shell costs only); 2.5% to outside broker (shell costs only)
• Zoned C-1
• Units also available for lease: $18.50/sf/yr NNN depending on build-out; Lease Term: 5+ years
For terms, features and floorplans, view the brochure below! Email Walt Arnold or Dana Van Doren for more information, or call (505) 256-7573.
Albuquerque Commercial Real Estate Report 5.10.10: 3 Approaches to Valuing CRE
May 24, 2010 at 7:32 am | Posted in Radio Show Reports | Leave a commentTags: acquisitions, albuquerque, asset, broker's opinion of value, cap rate, capital, commercial, cost analysis, cost approach valuation, CRE, income approach valuation, investments, investors, leased space, market comparison, opportunities, price analysis, property values, radio show, real estate, sperry van ness, valuation, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 5-10-10 <<<
Bob Clark, News Radio 770 KKOB: Walt you wanted to discuss how commercial real estate is valued and the different approaches to valuing commercial real estate.
Good morning Bob. Residential properties are usually valued in one way and that is by comparison approach or analyzing comparable properties. The market comparison approach is also used in commercial real estate. The comparison approach is analyzing similar properties in similar areas and adjusting values for any differences both positive and negative versus the subject property.
The second approach is the cost approach. The value of the land is first figured separately from the improvements. An estimate is made to the replacement cost of all improvements, as if new, on the property and then deducting depreciation from the improvements. This requires an excellent knowledge of building costs. Again, the Cost approach is value of land plus costs of improvements as if new minus depreciation.
The third approach, the income approach, analyses the income and expenses of the investment and then assigns a capitalization rate or a cap rate to analyze the investment.
Bob: Walt, we hear the term “cap rate” a lot in commercial real estate. I know there are several parts to the term Cap Rate, can you elaborate on it?
Sure, I’ll give the “Cliff Notes” version. Investment property is analyzed by looking at the total income of the property, Continue Reading Albuquerque Commercial Real Estate Report 5.10.10: 3 Approaches to Valuing CRE…
Walt Arnold, SIOR, CCIM
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