CRE Report 06.28.12
June 28, 2012 at 10:11 am | Posted in Uncategorized | Leave a commentTags: Albuquerque Retail Market, demand, market report, rent rates, retail, Retail Forecast, Retail Summary, vacancies
Albuquerque Retail Forecast
Bob – Walt last week you spoke about the office and industrial markets. Can you give an update on the retail market?
Walt – Good morning Bob, The retail market remains robust, although a lot of the movement is a lateral move, meaning a tenant is relocating from another property in the metro area from one property to another. With virtually no new construction, if the market continues on its upswing of activity, the vacant space will get filled quickly and with little new construction on the horizon, the retail market could get very interesting as demands gets stronger. This might be a welcome site for landlords as they will be able increase rates.
Bob – Target is building its property in Uptown. Are there any other “Big Box” projects planned in the metro area?
Walt – The target property is a 165,000 square feet building and will transform the intersection of Indian School and Louisiana, but as far as other “Big Box” users, we are probably unlikely to see any entering the market in 2012.
When I look at the retail numbers for the first quarter of 2012, the vacancy rate fell to 12.5%, down from last quarter and also down from a year ago. The overall median asking rate is $13.50, but that median number includes everything from small shop space to ABQ Uptown so location of the retail store is crucial when determining the lease rate. The rate could be from $5.00/SF/NNN in small community centers to $45.00/SF/NNN in ABQ Uptown. The rates are based on location, traffic and the condition of the center. Some of the notable deals were Dick’s Sporting Goods, 49579 at Cottonwood, a 14,800 square foot strip center on the Paseo Corridor a 4,287 square foot freestanding restaurant at Montgomery Plaza.
So Bob, the retail market is slowly filling up the supply of vacant space, which will increase demand for retail space, which will create interest from developers to assess the possibilities of constructing new retail space and the demand will cause landlords to push the envelope on rates. The real estate cycle continues.
Bob – Walt how can people get a hold of you to discuss Commercial Real Estate?
Walt – Thanks Bob, Call me 256-1255 my website is waltarnold.com follow me on twitter @waltarnold. If you’re looking to purchase office, industrial, or retail properties give me a call to discuss your real estate requirements. Sperry Van Ness is a national commercial firm with 160 offices across the country. We position buyers, sellers, landlords and tenants to make great choices in commercial real estate. Give me a call to discuss the Sperry Van Difference. Thanks Bob, have a great week.
Albuquerque CRE Report 02.19.12
February 22, 2012 at 10:29 pm | Posted in Market Reports, Radio Show Reports | 1 CommentTags: albuquerque, market, market report, retail
Albuquerque retail market
Bob – Walt you gave an update on the office and industrial markets last week, what about the retail market?
Walt – The retail market ended the year with a total vacancy rate just over 12%, which is down slightly from a year ago, asking rates vary widely, from the aging conditions of some of centers, to the superior location and synergy of other centers.
Older strip centers are around a median asking rate of $12 per square foot per year, NNN, neighborhood centers are around $14 per square foot per year, NNN and regional centers like Coronado and Cottonwood have a median asking rate of approximately $48 per square foot per year, NNN.
ABQ Uptown has a median asking rate of $34 per square foot per year and some superior locations have asking rates upwards of $30 per square foot per year based on their location, for example the Paseo Del Norte Corridor.
Construction completion was 61,000 ft. in 2011, so still very little construction was completed last year.
So in summary from year ago, vacancies are down, construction is up, net absorption is up, and asking lease rates are generally unchanged from a year ago with a few exceptions
Bob – Walt you’ve mentioned location several times, is it still location, location, location?
Walt – Well, location is very important. There are some other issues, here’s an acronym that might help with retail site selection PASTA V.
P – Parking, if you’re a retailer you need at least five spaces per thousand square feet (5/1000) of building to parking spaces 
ratio and the closer the spaces are to the front door, that is better.
A – Access, the site needs to have convenient access, preferably with more than one way to enter and leave the center.
S – Signage, building facade signage should be visible from at least 200 feet.
T – Traffic, a retailer obviously needs to have strong traffic patterns to survive, including intersections with traffic lights.
A – Activity, the best retail locations offer a variety of businesses to attract as many shoppers as possible.
V – Visibility, watch for trees and other obstacles that block the visibility of the center. A retail center needs to have great visibility from the street.
Bob – How can people contact you to discuss commercial real estate?
Walt – Thanks Bob, call Walt Arnold, the Sperry Van Ness at 256-1255 or check us out on the web@WaltArnold.com. I hope everyone has a great Presidents’ Day and Bob I’ll talk to you next week
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 Report 12.05.2011
December 15, 2011 at 12:06 pm | Posted in Market Reports, Radio Show Reports | Leave a commentTags: Albuquerque Commercial Real Estate, Albuquerque Construction, Albuquerque Retail Market, Black Friday Sales, construction industry, Journal Center, market report, REDW building, sperry van ness, unemployment, Unemployment Rate, walt arnold
Unemployment down, will CRE rise?
Bob – Walt, there has been some good news in the job market, unemployment is moving lower, now nationally 8.6% and even lower here. Sounds like good news for commercial real estate?
Walt – It is definitely a good sign! Unemployment is at the lowest levels in 32 months, 120,000 jobs added in November, with strong growth in hospitality and retail, but also gains in manufacturing, auto sales and even an uptick in housing. Consumer confidence is improving and business investment is up. Unfortunately about half of the improvement in the unemployment rate was due to workers dropping out of the workforce.
But, if the trend continues for a while, it will be great news for all types of commercial real estate. As we have talked about before we need jobs to improve the commercial real estate market. Hopefully those jobs numbers will keep going up.
Bob – Speaking of going up, the REDW building in the Journal Center is looking close to completion. What is going on with that construction project?
Walt – I was talking with Bill Smith of Reid & Associates last week and that building is a great story for the Design Build process. In the Design/Build process the client selects the builder based on their qualifications and their ability to make the project a successful one. The building was initially coming in at costs that were jeopardizing the project. Reid & Associates stepped in and the property is coming in where it needs to be costs wise and also on time for a December 2011 move in for the accounting firm.
REDW building is located at Jefferson and Masthead in the Journal Center, a 45,000 square foot LEED Certified building in the heart of the Journal Center.
Bob – Walt, what else do you have for us today?
Walt – Since it’s December, I thought I would give an update on the Albuquerque Retail Market. After record setting Black Friday sales have raised the hopes for a great holiday season. Maybe this will be the start of stronger retail sales moving forward.
The current overall retail market vacancy is 9.4%, with about 80,000 square feet under construction. Retail asking rates average about $14.25 per square foot per year for neighborhood centers and around $20 per square foot per year for Power centers. Rates have come down roughly 13% from a year ago. Moving forward vacancies will be decreasing slightly, asking rates trending lower and landlords of older centers doing whatever they can to get and keep tenants.
Bob – How can people contact you to talk about commercial real estate?
Walt – Thanks Bob, call Walt Arnold at Sperry Van Ness, 256-1255, website is waltarnold.com. Hey Bob, it looks like it might be time to get those skis and snowboards waxed up and ready to go. I might have to call a “Special Company Board Meeting” in Taos this week! Hey Bob, have a great week.
For daily CRE news updates follow me on Twitter or find me on Facebook.
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.
SIOR Conference
November 21, 2011 at 6:30 pm | Posted in Radio Show Reports, Videos | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, Bank Owned CRE, Chicago, distressed assets, investment, market report, opportunities, SIOR, sperry van ness, walt arnold
CRE Video Report 10.27.11
For more information on SIOR check them out on the web here. For all topics CRE follow me on Twitter or find me on Facebook today.
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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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!
Walt Arnold, SIOR, CCIM
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