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.

Albuquerque, NM retail market featured in Western Real Estate Business

July 2, 2010 at 7:39 am | Posted in Uncategorized | Leave a comment
Tags: , , , , , , , , , , , , , , , , , ,

Share/Save/Bookmark

April’s issue of Western Real Estate Business featured a highlight on the Albuquerque, N.M. retail market supplied by Sperry Van Ness/Walt Arnold Commercial Real Estate.  Take a look at what makes Albuquerque stand out:

Compared to performance nationally, the Albuquerque retail market is bucking the trend with limited increases in vacancy rates as well as limited reductions in lease rates. Albuquerque’s insulation from what other markets throughout the Southwest, such as Phoenix and Las Vegas, are experiencing is based on the city’s economic engine being driven by a heavy concentration of federal government support, which spins off a stable layer of private enterprise. Secondly, unlike other larger markets, Albuquerque was not burdened with an over inventory of vacant and in-development projects when the economic downturn began. This is not to say that Albuquerque has not experienced its share of real estate woe.

At the end of 2009, Albuquerque’s retail market had a net absorption of 144,000 square feet, which was almost four times higher than 2008. This was primarily due to the decrease in new construction. The vacancy rate rose from 8 percent at the end of 2008 to 10.8 percent a year later. The last two quarters of 2009 reflect decreases from previous quarters and forecasts indicate a vacancy rate of 10 percent at the end of 2010, far below the projected national vacancy rate of 11.7 percent.

Perhaps the most distressing to retail property owners, as with all commercial landlords, will be the reduction of lease rates not only with prospective tenants and renewing tenants, but also with the existing tenant, whose lease still has a number of years remaining, asking to renegotiate. Throughout 2009, retail lease rates fell, across all retail types, anywhere from 15 to 20 percent. Only in fourth quarter 2009 did Albuquerque start to see the beginning of stabilization in lease rates. Strip and neighborhood centers showed level or slight increases in lease rates whereas larger community centers tracked slightly downward. Available space is declining, and deals are being made, which will cause lease rates to continue on their current course.

To continue reading this article, click HERE.  And, contact me to learn how you can capitalize with an investment in this unique marketplace!

Albuquerque Commercial Real Estate Report 5.3.10: Leasing Information Network

May 13, 2010 at 2:53 pm | Posted in Radio Show Reports | Leave a comment
Tags: , , , , , , , , , , , , , ,

Share/Save/Bookmark

>>> Click here to listen to the Commercial Real Estate Report for 5-3-10 <<<

Bob Clark, News Radio 770 KKOB: Walt what do you have for us today?

Good morning Bob, I want to talk about the Leasing Information Network, a group of commercial real estate brokers that meets monthly to talk about leasing commercial space and LIN had its Roundtable session last Wednesday for the Albuquerque leasing market.  In the office and industrial markets the size of the leasing deals over the fourth quarter of last year are slightly up in square footage, the number of transactions is also slightly up and the two most active submarkets continue to be the  North I-25 area and the Uptown market.

Predictions for 2010 are that effective lease rates (which include concessions) will be down, new construction will be non-existent and vacancy rates will push slightly upward, increasing available lease spaces with Landlords concessions also up in order to attract tenants.

Bob: How about lease rates, was there any discussion on where lease rates are heading?

In the office sector Class A space, is going for $19/sf/yr to the low $20/sf/yr full service, Class B rates were around $16.50/sf/yr and class C was $12/sf/yr with some comments being whatever you can get!

Industrial rates were around $6/sf/yr for existing space and $6.50 to $8/sf/yr for new space.  But there are some warehouse rates, especially in downtown that are in the $3 to $3.50/sf/yr range.

It is interesting that the most challenging component of completing the lease transaction and the solution to any challenges to leasing was one word.  Expectations!   Continue Reading Albuquerque Commercial Real Estate Report 5.3.10: Leasing Information Network…

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