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.
CRE Report 06.05.2011
June 5, 2012 at 11:08 am | Posted in Market Reports, Radio Show Reports | Leave a commentTags: Admiral Beverage, Albuquerque commercial market, Albuquerque Industrial, Albuquerque REtail, Albuquerque Uptown, retail
Bob – Walt, what do you have for us this morning?
Walt– Good Morning Bob, I have some updates for you in the Albuquerque commercial market. First of all, some good construction news, Admiral Beverage is going to build a 219,000 square foot building at Rio Bravo and Prince. The $15 million dollar project will employ at least 55
Image Credit: http://www.dpsdesign.org/abq-uptown
contractors and add 20 permanent jobs in addition to the 185 current employees. So that is good news!
Admiral Beverage acquired Maloof Distributing in 2010. Admiral will start on 24 acres for its warehouse and delivery operation. The remaining 17.5 will be for future use.
In the retail world ABQ Uptown has a couple of new tenants for the Lifestyle Center. J. Crew and North Face will take space in the former Border’s location. There will be one remaining space in the 20,000 square foot building and when that space gets leased the center will be 100% occupied.
J. Crew and North Face could also create additional retailers to start to look at the Albuquerque market. As retailers see that J Crew and North Face have selected the Albuquerque market it will entice others to look at the opportunities in the Albuquerque retail market for opening stores in ABQ Uptown, Coronado or the Winrock project. J. Crew and North Face are two strong retailers with successful platforms and will add to the strength of ABQ Uptown. As more retailers continue to make there way to Albuquerque it continues to open the door for additional retailers and also higher end specialty retailers.
It’s like the story of the Burger King real estate department. The story is it was just one person. The task was to find where McDonald’s was building a restaurant and buy the land next door and build a Burger King. All the heavy site analysis and demographics was done, which is similar for retailers, as more retailers look to invest in specific locations and other retailers are already there and doing well, the risk of putting in a store begins to ease.
Bob – Anything else and how can our listeners contact you regarding commercial real estate?
Walt – Thanks Bob, Sperry Van Ness is a full service commercial real estate company in 160 markets across the country. We have specialists in sales and leasing of office, industrial and retail properties. We help Tenants find space through our Tenant Representation platform, we have a full service professional property management company and we have disciplines in loan sales, bank Real Estate Owned sales through our Asset Recovery Team, Auction Services, Investments sales, and Loan Workouts through a strategic partner. We have what’s required to make the right choice in commercial real estate.
If you have any commercial real estate requirements we have solutions.
Direct line for me, Walt Arnold is 505-256-1255, our website is www.waltarnold.com, also follow me on Twitter and become a fan on Facebook fore more up to date CRE news updates. Give me a call to discuss the Sperry Van Ness difference in commercial real estate.
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 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 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
Visit me on Facebook or Follow me on Twitter or visit my website http://www.waltarnold.com.
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.
Just Listed! Multi-Use Property For Sale, Albuquerque NM
August 26, 2010 at 7:07 am | Posted in Property Listings | Leave a commentTags: albuquerque, commercial, CRE, for lease, for sale, industrial, investment, leased space, listings, New Mexico, opportunities, property, real estate, retail, sperry van ness, walt arnold
LOCATION: 9999 Central NE is located on the NWC of Parsifal and Central NE, just four blocks west of Eubank | Google Map It!
PROPERTY: Two buildings containing 8,392± Sq. Ft.
RETAIL BUILDING: 3,299± Sq. Ft.
REPAIR FACILITY: 5,093± Sq. Ft.
LAND: 3.0 ± Ac. – Completely Fenced
SALE PRICE: $1,450,000.00
ZONING: C-2 / SU-1 (Storage of RV’s)
COMMENTS: Access from Central, Garcia & Parsifal
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 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…
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…
Walt Arnold, SIOR, CCIM
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