CRE Report 05.14.12
May 16, 2012 at 11:19 pm | Posted in Radio Show Reports | Leave a commentTags: 401 San Pedro, Auction, opportunities, preventative maintenance, property maintenance, property management, radio show, repairs, roof, ROof Repair
Property Maintenance
Bob – Walt, what do you have for us today?
Walt – Good morning Bob. I thought it would be a good time to talk about some property management. One area where a few hours of investigation in property management can save thousands of dollars is preventative maintenance on the roof.
Bob – Walt the thought of the roof and any repairs makes me think of one question, “How much is it going to cost”?
Walt – Well roofs are expensive and the way to keep the costs down is to make the roof last as long as possible and minimizing repairs. The word is “preventative maintenance”. Basic roof maintenance can save thousands of dollars byincreasing the life of the roof and reducing maintenancecosts. Here are some basic bare bones tips on roof maintenance:
1. You can’t see the roof from the ground. I know this sounds elementary but someone has to get on the roof to survey any maintenance issues.
2. Check for ponding on the roof. Areas of ponding will cause problems. Get with your roofer and determine a course of action regarding ponding.
3. Take pictures or have your roofer take pictures and make notes on each photo. It is so much easier to understand when you can see the problem.
4. Make sure the roof drains and canales are free of debris. A clogged drain can lead to severe roof problems.
A few dollars for the inspection and maintenance of necessary repairs can save thousands of dollars if the roof can be maintained and repairs kept to a minimum. Conduct a roof inspection at least once a year, twice is better.
Bob – Walt, Sperry Van Ness manages a substantial portfolio of commercial properties, can you tell us a little more about your property management services?
Walt – We manage approximately 500,000 square feet of commercial space and work diligently every day to preserve the asset and increase the cash flow. Property management is the nuts and bolts of the commercial real estate industry. Irene Carr, property manager, and Barb Buell do a great job in handling the day-to-day details of serving our owners, tenants and managing the properties.
We manage vendors, contractors, pay bills, collect rents, deal with insurance and mortgages and provide in depth analyses on all activity on the property and also provide financial reports on a monthly basis. Get out of town and let us handle all the details!
Bob – How can people contact you to discuss commercial real estate?
Walt – Quickly, I have to get in a word on the auction of 401 San Pedro. Originally listed at $330,000. Opening bid is $199,000. Call me for details at 256-1255, don’t miss this opportunity. Auction is next Wednesday May 23, 2012 from 1:00 AM to 3:00 PM. It’s an online auction. Get signed up and participate in this excellent opportunity. Also follow me on twitter @waltarnold or become a fan of Sperry Van Ness on Facebook for daily up to date Abq CRE news updates. Bob, have a great week!
CRE Report 03.12.2012
March 12, 2012 at 11:50 am | Posted in Radio Show Reports | Leave a commentTags: Albuquerque Economy, Albuquerque Real Estate, Apartments, Baby Boomers, Investing, office, office market, radio show, real estate, Real Estate Investing, recession, retirement, unemployment, vacancies, walt arnold
Where are all the jobs?
Bob – Walt you mentioned attending the Urban Land Institute Luncheon last week and some of the interesting trends they talked about, can you tell us about some of those trends.
Walt – Yes thanks Bob, good morning. Urban Land Institute presentation discussed some trends that will affect commercial real estate. One trend that is developing is “Less is Better”. Tenants and owners are beginning to squeeze more out of every square foot of space in every type of commercial space. This efficiency means less square footage, but it also is about creating environments that are multi-dimensional, adaptable and create a greater intensity of use.
What does that mean? It means we are going to see office and commercial space that aligns itself with this work from anywhere, at anytime, 24/7 workforce and we will see changes in spaces that start to reflect this change in mobility and adaptability more and more.
Bob – The name of the presentation is” Where the Hell are the Jobs” (NOTE–Soften it if you want). Did you get an answer?
Walt – The world is obviously getting smaller and we have seen globalization of capital, instant technology and labor.
Workers will need college education with degrees for New Mexico to gain substantial job growth in this new economy. We are competing with 49 other states for global markets.
The majority of jobs are going to be in Medical, Education, Healthcare, and customized manufacturing. Meds and Eds is a phrase you will start to hear more often.
So for real estate investors, commercial buildings with those types of tenants are going to be less risky and hopefully more profitable.
Bob – Anything else for us today?
Walt – For all the Boomers get ready for extended employment! 40% of Boomers say they don’t have enough money to retire. So Bob, make sure you take care of that golden voice of yours, you might need it a while!
The Boomers are going to ramp up Senior Housing requirements for the next several years and Albuquerque has already seen strong growth in the Senior Housing and Assisted Living markets.
With declining home ownership rental-housing demand will continue to grow and the demand for rental units will remain strong for the next few years. Think about stricter mortgage requirements, more waves of foreclosures and many families rethinking the costs of home ownership will keep the demand for apartments strong.
Bob – How can people contact you to discuss commercial real estate?
Walt – Thanks Bob. Call me, Walt Arnold at 256-1255, become a fan on Facebook, follow me on Twitter or visit my website waltarnold.com for current listings in the Abq area. Sperry Van Ness is a full service commercial real estate company helping Landlords and Tenants solve space and lease requirements, investors maximize their cash flow and rates of returns through investment in commercial properties and through our professional property management we help owners maximize cash flows and preserve assets. Hey Bob, happy first Monday of daylight savings time. I’ll talk to you next week.
Photo Credit http://usdailyreview.com/tag/unemployment
Albuquerque CRE Report for 01.09.12
January 9, 2012 at 10:35 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, Buy, CRE, investment, investors, Lease, leased space, New Years Resolutions, opportunities, radio show, real estate, Sell, sperry van ness, tenant, tenants, walt arnold
New Year strategies for commercial properties investors, owners, buyers and tenants
Bob – Happy New Year! Our first commercial report of 2012, what do you have for us to start off the New Year!
Walt – Happy New Year Bob and I hope you had a great time over the Holidays and the New Year.
I know you’re not a big New Year Resolutions advocate, but I wanted to talk about some New Year strategies for commercial properties investors, owners, buyers and tenants of commercial properties.
Bob – New Years Resolutions are difficult to keep and it is difficult for people to keep them. But I’ll listen, what ideas do you have?
Walt – I think this is a great time for those involved in commercial properties to make some strategies and take some action to move forward on financial goals, which may include real estate.
Some quotes I remember are, “every journey begins with a single step”, or “if you aim at nothing you are bound to hit it”. A question to ask this time of year is, “what is my exit strategy for the properties I own”, or “what can I do today to start looking at investing in commercial real estate”?
Those answers might not even come this year, but it’s important to start thinking about them now and develop the steps to move forward in that direction.
Bob – I would think this is not a great time to sell properties, but it appears to be a better time to buy properties. How far in advance do someone need to start thinking about buying, selling or leasing?
Walt – There are many aspects to consider, for example a business that owns it real estate might say, “I need to raise some cash, but my bank won’t lend me any money”, a sale-leaseback might be a way to raise some cash and put cash back in the business to fund operations.
An investor just starting out might have the question,” how do I start investing in this market with all this opportunity to buy properties?”
A company currently leasing might ask, “I want to buy instead of lease, what do I need to know to get started?”
All of these decisions take time and planning.
Bob – So you’re saying there are a lot of things to consider and it might happen quickly or it could take time to develop a plan to decide what to do and how to go about it?
Walt – These aren’t snap decisions like, I need to lose 20 pounds, which by the way I do, these decisions take time and it helps to have people that can help define the strategies and a game plan to work through the issues and come up with solutions to accomplish these goals.
Bob – Walt, how can people get a hold of you to discuss how to make a strategic plan for 2012 and beyond?
Walt – Thanks Bob, my direct line is 256-1255, website waltarnold.com. Let’s talk about strategy for 2012 and beyond. You can connect with me on Facebook or Twitter.
CRE Report 10.17.2011
October 31, 2011 at 10:13 am | Posted in Market Reports, Radio Show Reports, Videos | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, Albuquerque Tenant Rep, CRE, hold over period, Lease, Lease negotiations. For Lease, negotiation, penalty, radio show, REO, sperry van ness, tenant, tenant representation, walt arnold
Lease Negotiations
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CRE Report for 09.17.2011
October 17, 2011 at 8:23 am | Posted in Radio Show Reports | Leave a commentTags: Advice, Albuquerque Commercial Real Estate, commercial, Lease, radio show, rent rates, tenant, tenant representation
Tenant Representation
Bob – Walt, I wanted to ask you a question, how should a Tenant deal with their lease as it approaches the expiration date. In this market should they begin to have some discussions with their landlords prior to the lease expiring or just wait until the lease comes to an end and then try to negotiate?
Walt – Good morning Bob! Yes the lease is expiring soon, what are your options? One thing to do is to do nothing. When the lease expires it usually goes to a month to month agreement and that leaves the tenant with no protection, the landlord can give the tenant 30 days’ notice to move out.
Another thing that happens at the end of the lease is if a tenant stays past the expiration date, there might be “hold over” provision that could be 125% to 200% of the current lease and that is a big increase in monthly expenses especially in this environment.
Both of these scenarios allow the owners to dictate the terms, if they so choose.
Bob – Say I’m a tenant, and my lease is expiring, and I’m thinking I want to handle this lease negotiation thing by myself, what are some of those issues?
Walt – I know you’re a sharp guy, even though you did go to NMSU, there are some things you need to be aware of: you might risk overpaying your rent if you don’t know everything that is happening in the market and also you need to be aware of market incentives are currently being offered. There’s also the potential to make some harmful commitments within the lease document that might cause some financial issues and, it takes time to do all this lease negotiation stuff and that is going to take you away from focusing on your business, which is the top priority.
Bob – Ok Walt, tell me what I need to do so I get the right space, at the right price and terms.
Walt – First I would say hire a Broker that understands the Tenant Representation process fully, for example, Sperry Van Ness. We have handled thousands of real estate transactions and have the valuable experience to get the best results. Tenant Rep services are usually at no charge to the tenant, the cost for leasing the space is paid by the Landlord, you can know that you are getting relevant, up to date information to make the best decision, we will explain the process so you know where you stand throughout the transaction, and you can then focus on your business, which is what you do best, and we can focus on all the details, which is what we do best.
Bob – All right, I feel better already, how can people get a hold of you today?
Walt – Thanks Bob call Walt Arnold @ Sperry Van Ness my direct line is 256-1255, website waltarnold.com. I’m glad I could help you today, have a great 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!
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