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
CRE White Paper
February 6, 2012 at 12:22 pm | Posted in Whitepapers | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, asset, Balance Sheet, CRE, CRE White Papers, financing, Getting YOur Property Financed, Income Statement, Mortgage, mortgage rates, opportunities, recession, White Papers
Getting your property financed
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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 Featured on News Radio 770 KKOB
August 15, 2011 at 10:44 am | Posted in Market Reports, Radio Show Reports, Videos | Leave a commentTags: Commercial Retail, CRE, CRE Market, CRE News, office, recession, recovery, retail, Retail Recovery, sperry van ness
Retail Recovery
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CRE Report for 08.01.2011 – Real Estate Cycle Snapshot
August 1, 2011 at 2:33 pm | Posted in Market Reports, Radio Show Reports | Leave a commentTags: Hospitality, industrial, Market Snapshot, office, primary markets, real estate cycle, Real Estate Market, Real Estate News, recession, recovery, retail
Market Snapshot
Bob – Walt, you mentioned Stephen Duffy from Moss Adams spoke last Monday at the NAIOP meeting. Did he have some interesting news on the commercial real estate front?
Walt – Good morning Bob, it was an interesting and enlightening talk.
He discussed how there is a tale of two markets, Class A assets in primary markets are experiencing strong values and demand for properties. Current prices reflect a significant difference between trophy properties in major markets and assets in non primary markets. There is a flight to core assets and to quality. Some good news is that all property types have moved out of recession into recovery in this real estate cycle.
Bob – Can you give us a quick snapshot of each property group and how they are faring?
Walt – Sure I’ll give a very brief summary:
Industrial – still fighting through oversupply, but quality properties are selling to investors.
Office – Struggling due to a lagging growth rate, however strong demand for Trophy properties.
Healthcare – Currently performing well in this market. Medical office buildings are outperforming office properties.
Multifamily is strong and getting stronger. Continued strong increases in rents are forecast.
Retail – Has strengthening occupancies and rates, there aren’t a lot of properties selling but again a strong flight to quality for example, Simon’s Properties purchase of ABQ Uptown.
Hospitality – is having rapid and strong growth in fundamentals.
Gaming Properties – There has been a freefall for most gaming properties since 2009, massive distress and defaults. Tribal sovereignty has been confirmed by the courts and it might be difficult for lenders to foreclose on tribal properties.
So that a very short synopsis.
Bob -You mentioned the real estate cycle. So what can someone do once they understand where they are in the cycle and maybe a more important objective is how can you create an exit strategy?
Walt – One thing I forgot to mention Stephen Duffy talked about was, there is opportunity in local non primary markets for local investors to analyze the market and make some good investments. Which ties into your question, yes exit strategies are so important. What is the plan? How long until the next peak? Is this a time to get in or get out?
Obviously, each situation is different, at Sperry Van Ness, we can help analyze the market, look for trends and develop a plan to get in and also a plan to exit the market, through in depth planning, analyzing the market and developing a strategy on when to acquire and sell assets.
Bob – Anything else today and how can people reach you?
Walt – Thanks Bob, I want to mention the auction this Thursday August 4th, 3801 Eubank, opening bid 396,000, a 7,000 square foot office building in Eubank. That’s $56/sf. My number is 256-1255, website http://www.waltarnold.com thanks Bob and I’ll talk to you next Monday.
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 7.19.10: Market Resources
August 9, 2010 at 8:58 am | Posted in Radio Show Reports | Leave a commentTags: acquisitions, albuquerque, asset, banks, commercial, CRE, distressed assets, economy, for lease, for sale, industrial, investment, investors, leased space, listings, market report, New Mexico, office, opportunities, property, property management, radio show, real estate, recession, retail, sperry van ness, tenant representation, walt arnold
>>> Click HERE to listen to the Commercial Real Estate Report for 7-19-10 <<<
Bob Clark, News Radio 770 KKOB: Walt this is such a difficult environment in commercial real estate, do you have any advice on how to navigate this market.
Walt Arnold: Bob, this is a commercial landscape seen for the first time. We are in an extremely tight credit market, strict regulations from the feds on lending, high unemployment and many financial constraints on companies.
This is a market that requires professional advice from someone that is in the commercial real estate market every day. At Sperry Van Ness we are analyzing this market daily, we are up to speed on the developments in the market and can advise landlords, tenants, buyers and sellers on how to position themselves and their property to have the greatest amount of success in this market.
Bob: What are some of the services you provide that can help people make decisions?
Walt Arnold: We have a myriad of sources that we pay to belong to pull data from to provide our clients with the best information to make good decisions, along with being an SIOR, one of 2800 worldwide, and the CCIM membership that requires years of classroom study and analysis, I am able to provide clients a wealth of information to analyze each situation to its fullest.
Bob: You also have spoken before about Sperry Van Ness’ marketing materials and the online publishing system. Can you tell us more about it?
Walt Arnold: We are able to provide our clients with the best marketing materials for the properties in the industry. We can also create a specific website for a specific property through our proprietary OTS system. We have the experienced brokers, tools and programs to analyze lease spaces for tenants or present property for sale to the largest number of Continue Reading Albuquerque Commercial Real Estate Report 7.19.10: Market Resources…
Q2 Results in Rising Vacancy Rate for Office
August 6, 2010 at 11:17 am | Posted in Market Reports | Leave a commentTags: albuquerque, commercial, CRE, economy, for lease, for sale, industrial, investors, leased space, market report, New Mexico, office, office market, real estate, recession, retail
The Albuquerque office market slipped in Q2-2010, with a New Mexico Business Weekly report suggesting a historic vacancy rate approaching. The job market continues to struggle and it results in a rising vacancy rate for office space:
Office vacancy rates climbed to 17.9 percent in the second quarter as Albuquerque underperformed the nation. With the economy teetering on the verge of a double dip recession, an historic 20 percent vacancy rate could be coming.
The article includes some interesting charts from CB Richard Ellis reporting the latest industrial net absorption, completions and vacancies, retail asking lease rate ranges, and an overall office review the Albuquerque market in the second quarter.
Industrial Net Absorption, Completions, Vacancies
Retail Asking Lease Rate Range
Office Overview Q2 2010
The article continues: Continue Reading Q2 Results in Rising Vacancy Rate for Office…
Metro Office Vacancy Hits New High
July 23, 2010 at 12:21 am | Posted in Market Reports | Leave a commentTags: albuquerque, commercial, CRE, economy, employment rate, for lease, investment, jobs, leased space, market report, New Mexico, office, office market, property, real estate, recession, tenants
In our last weekly commercial real estate radio report on KKOB News Radio 770, we talked about the retail markets and how critical job growth is to fortifying consumer confidence. A report this week in the Albuquerque Journal business outlook talks about the road head in job growth as office vacancies have hit a new high. However, the ABQ market is doing better than the national average. Industry experts are looking to past trends to predict the break in the cycle, and ultimately, that prediction is that there will be one… at some point. The article begins:
The stagnant job picture continues to weigh on the rental market for office space, pushing up the vacancy rate to a new high of 17.7 percent in the second quarter, according to the latest Office Trends Report by Grubb & Ellis New Mexico.
“Any chances for even a small rebound appear to be slight at best,” the report says.
More than a half million square feet of office space has gone empty in the Albuquerque metro area since the second quarter of 2009, when the office vacancy rate was 14.1 percent. The vacancy rate set a recent Continue Reading Metro Office Vacancy Hits New High…
Albuquerque Commercial Real Estate Report 6.28.10: Bank Failures
July 13, 2010 at 7:25 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, bank failure, banks, capital, cash reserves, commercial, CRE, development loans, econo, First American Bank of Artesia, for sale, High Desert Bank, leased space, non-performing, properties, real estate, recession, regulators, sperry van ness, split commissions, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 6-28-10 <<<
Bob Clark, News Radio 770 KKOB: Walt, you wanted to start with a comment on the closure of High Desert Bank last Friday.
Yes, good morning Bob. There was another bank failure in Albuquerque on Friday, High Desert Bank was closed by state regulators and will open up on Monday as First American Bank of Artesia. Banks continue to struggle with regulators and the increased requirements for cash reserves and capital. As we go forward we will unfortunately see this probably play out again as the banking sector continues to struggle with non-performing commercial real estate and development loans that have put a strain on the health of banks.
Bob: What else do you have for us?
I wanted to talk today about how in this tough environment if someone is considering listing a property for sale or lease it is important to analyze the real estate company hired to get the property sold or leased. And in this economy you need a company that has the strength and resources to get it done.
Sperry Van Ness has the tools and the people to get properties sold and leased. We provide a comprehensive proposal and marketing plan to properly position the property in the market. Once listed the listing is immediately distributed to numerous listing portals such as Loopnet and Property Line. Through our 575 marketing approach we can target the most likely prospects for the property and contact them either directly or through our e-mail or direct mail marketing campaigns and provide detailed monthly reports of the progress.
Bob: Walt, aren’t these similar to what other companies can do when they list a property for sale or lease?
They might develop a marketing plan, make a flyer and put up a sign, but Sperry Van Ness goes the extra mile to serve our clients. We split all of our fees 50/50 with the selling broker and that doesn’t always happen in commercial real estate. We want to encourage and incentivize other real estate brokers to bring their buyers to the property. Continue Reading Albuquerque Commercial Real Estate Report 6.28.10: Bank Failures…
Walt Arnold, SIOR, CCIM
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