CRE Report for 01.22.2012
January 23, 2012 at 12:39 am | Posted in Market Reports, Radio Show Reports | Leave a commentTags: albuquerque, Albuquerque Commercial Real Estate, for lease, holdover charge, Lease, Lease Expiration, month to month. hold over penalty. lease rates, sperry van ness, tenant, tenant representation, walt arnold
Lease expiration tips for tenants.
Bob – Walt, if I was a commercial tenant in building and my lease is closing in on its expiration date, what are my options? What should I be thinking about?
Walt – Bob, most tenants don’t anticipate the time it takes to either renew their existing lease of look at other possibilities in the marketplace.
The first option is to do nothing and try to stay in a month to month tenancy with no protection against the owner giving 30 days notice to vacate. There might also be a “holdover charge” in the lease which the landlord can charge and that additional amount is usually 25% to 100% increase in the lease rate.
Bob – That’s a little scary, what about renegotiating for myself, it can’t’ be that hard, can it?
Walt – It’s like my father in law use to say you don’t know what you don’t know. If you’re not in the market every day, a tenant might risk paying more than they should in this current market, they might also not be aware of current market incentives offered by landlords, there are some commitments in the fine print of the lease document that, in coordination with an attorney, need to be discovered and addressed to avoid clauses that could be harmful to the tenant in the lease, and most importantly it takes time away from the business to accomplish all this and it take the focus off the primary objective, your business.
Bob – Walt, I take it this is where you tell me how the Tenant Representation process works and how you can help tenants renew or relocate in this market.
Walt – Yes Bob, thanks for the softball. At Sperry Van Ness our brokers have handled thousands of leasing assignments we have the experience in getting the best possible results. This is done at no costs to the tenant as the landlord pays the commission when the lease is executed. We provide up to date relevant market information and guide our clients through the process from the initial meeting to move-in and beyond. And finally the tenant representation process allows us to do what we do best which is the leasing component and allows the business owner do what they do best and that is to keep their focus on running the business.
Bob – How can people contact you today to talk about commercial real estate?
Walt – Thanks Bob, call me, Walt Arnold, on my direct line 505-256-1255 or check us out on the web at waltarnold.com. Also if you have an issue regarding commercial that you need help with or want to talk to someone about give me a call and we can discuss it. Talk to you next week, with my prediction for the Super Bowl, what else is there to talk about the next couple of weeks? Have a great week! Also check out Sperry Van Ness on Facebook become a fan or follow me on Twitter for daily CRE news updates.
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
Sperry Van Ness Services
July 5, 2011 at 11:02 am | Posted in Uncategorized, Videos | Leave a commentTags: Buy, CRE Services, for lease, for sale, Lease, Sale, sperry van ness, tenant, tenant representation, tenants
Tenant Representaion Services
If you have any interest in our Tenant Representation Services don’t hesitate to call me today (505)256-1255. You can also follow me on Twitter and Facebook for daily CRE news, info and tips.
Albuquerque Commercial Real Estate Report 7.12.10: Retail Markets
July 21, 2010 at 9:40 am | Posted in Radio Show Reports | 1 CommentTags: acquisitions, albuquerque, asset, Auction, banks, CRE, economy, for sale, industrial, investments, leased space, listings, market, market report, New Mexico, opportunities, property, real estate, retail, sperry van ness, tenant, walt arnold
>>> Click here to listen to the Commercial Real Estate Report 7-12-10 <<<
Bob Clark, News Radio 770 KKOB: Walt you had a few things to talk about today. What do you want to start with?
I wanted to talk a little about the retail market which took a cautionary track in June. Although sales numbers were mixed, consumers just aren’t stepping up and spending at the pace retailers expected. This news is part of a larger downshift as consumer confidence slumped last month and consumer borrowing also fell.
Unfortunately the bounce back retailers were hoping for is not happening. So retailers are still in for a tough road.
Bob: You also had some economic news from Sperry Van Ness you wanted to discuss.
Yes, Sam Chandan, an economist had some interesting information last week.
What he said is that there is a lag when the underlying conditions begin to improve and although the recession is technically over, it sure doesn’t feel like it and the main reason is the Labor markets still remain challenged.
We have had growth in the labor markets for 6 months in a row. So, technically we are coming out of this recession better than the 2001 recession, but it is going to take some time for the fundamentals to improve and show meaningful improvement in commercial real estate properties. Continue Reading Albuquerque Commercial Real Estate Report 7.12.10: Retail Markets…
Whitepaper: The Benefits of Professional Property Management
July 19, 2010 at 6:16 am | Posted in Whitepapers | 3 CommentsTags: albuquerque, asset, asset management, commercial, CRE, for lease, investment, investors, leased space, net operating income, office, operations, portfolio, property, property management, property values, real estate, retail, tenant, valuation, walt arnold, white paper
*see below for printable version.
The reality is that commercial real estate properties and portfolios that are actively managed not only perform better on an operating basis, but in most cases, they yield more on disposition as well. That said, my question is this: Why is it that so many commercial real estate principals still attempt to manage their own portfolio? While the answers clearly vary on a case-by-case basis, the most common reason usually boils down to the perception that money can be saved by not paying third party management fees. Indeed, the age old dispute between “do it yourself” and “do it for you” business models is alive and well in the commercial real estate industry. In the text that follows I’ll make the case for professional management as a value added service that is accretive to overall property returns.
Let’s begin our discussion with discussing the difference between property management and asset management. It was not too long ago that there were very distinct differences between these two disciplines. Property managers were deemed to be tactical in nature, focusing on day-to-day operating issues such as routine maintenance, minimizing vacancy, collection of rent/lease payments, and first tier communication with tenants. Asset Managers on the other hand were strategic in nature focusing on adding value to the property by making positioning decisions that would increase net operating income (NOI) and valuation. While these distinctions still exist among some firms, the increased sophistication of professional management firms over the past few years have caused the lines to be blurred to the extent that many firms now provide both disciplines in an integrated service offering.
As an owner of commercial real estate, unless you’re a very large and sophisticated commercial enterprise, attempting to do it yourself or hiring internal staff, it is not only inefficient and very expensive, but in this author’s humble opinion it’s very short sighted. You see, the right question to ask is not can you manage your own portfolio, but should you? Let me provide an analogy for illustrative purposes…I could do my own taxes, I have the financial acumen to do so, and who knows my financial position better than I do? Why should I pay a CPA to do something that I could clearly do myself? Following is how I viewed the decision to outsource Continue Reading Whitepaper: The Benefits of Professional Property Management…
Albuquerque Commercial Real Estate Report 5.24.10: Property Prescriptions
May 27, 2010 at 6:46 am | Posted in Radio Show Reports | Leave a commentTags: asset, broker's opinion of value, commercial, CRE, economy, for lease, investment, investors, leased space, listings, market, office, opportunities, property, property management, property values, radio show, real estate, retail, taxes, tenant
>>> Click here to listen to the Commercial Real Estate Report for 5-24-10 <<<
Bob Clark, News Radio 770 KKOB: Walt, you’ve talked before about the difficulties investment property owners are facing these days, what can property owners do to get through these tough times?
Good Morning Bob. Owners need to check their properties vital signs, possibly look at some preventative measures, call in a specialist or even perform cosmetic surgery if a property looks weathered or needs a boost. Wherever the property is in its life cycle the goal is to avoid emergencies and create strategies against plummeting values.
Bob: Are there some specific strategies owners can implement?
Yes Bob there are. First is to examine the income and expenses. This will reveal if the property’s lease rates are competitive with other nearby investments and check to see if all potential sources of income are being collected. The expense side will reveal any expenses that are out of line. Make sure there is a budget in place and review it monthly and be realistic and diligent to anticipate any potential surprises.
Next, look at the tenants. Are they right ones for the property? Maybe local tenants would be a better choice instead of spending a lot of time chasing national tenants. Analyze the tenant use and determine if certain types of tenants are missing.
3rd: a little stucco or paint can go a long way. Add some new doors, maybe a loading dock, these types of things will make the most impact for the money. Tenants love to see the owner investing in the property and in them.
Finally, taxes make sure to protest Continue Reading Albuquerque Commercial Real Estate Report 5.24.10: Property Prescriptions…
Albuquerque Commercial Real Estate Report 5.17.10: The latest on BGK Group & others
May 24, 2010 at 2:43 pm | Posted in Radio Show Reports | Leave a commentTags: acquisitions, albuquerque, asset, BGK Group, capital, commercial, CRE, for lease, investment, investors, leased space, liquidity, listings, market, New Mexico, office, opportunities, radio show, real estate, retail, tenant, transactions, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 5-17-10! <<<
Bob Clark, News Radio 770 KKOB: Walt there was some news last week about BGK Group, can you give us some details?
Sure good morning Bob. BGK Group, which is the largest holder of commercial real estate in New Mexico with over 2 million square feet, was purchased by New York’s Rosemont Real Estate. Rosemont acquired a 51% controlling interest and will rename the company Rosemont Realty LLC. The headquarters will remain in Santa Fe.
The deal gives BGK a needed cash and management infusion. The sale also helps with a succession issue as BGK leader, Eddie Gilbert is 88 years old.
The New Mexico holdings include 19 Albuquerque office buildings, 6 properties in Santa Fe and one in Hobbs. BGK is Rosemont’s first major acquisition.
Bob: Walt, what’s going on with La Bella Spa at ABQ Uptown, are they back in there space?
Yes, that’s an interesting deal and a sign of the times when a tenant vacates a property over a year ago; the space remained vacant until La Bella worked out a deal with the Landlord to go back into ½ of their original space. The balance of the space will be leased to another retail tenant. This is a creative approach to solving a problem by both the tenant and landlord to fill some vacant space. Both Hunt Development and La Bella are happy to be back in ABQ Uptown.
Bob: What else do you have for us today? Continue Reading Albuquerque Commercial Real Estate Report 5.17.10: The latest on BGK Group & others…
Sperry Van Ness brokers assist in Albuquerque retailer expansion
April 28, 2010 at 12:22 pm | Posted in Uncategorized | Leave a commentTags: albuquerque, asset, commercial, CRE, investors, leased space, New Mexico, property, real estate, sperry van ness, tenant, transactions, walt arnold
Sperry Van Ness brokers Art Paterson and Greg Linde in our office recently assisted Shoe Box in relocating to 4850 Lincoln Road, under 13,500 sqft.
While many corporate retailers are downsizing, the Shoe Box have expanded into 13,500 square feet at 4850 Lincoln Road NE, just north of I-25 and Montgomery on Pan American Fwy. They offer wholesale pricing on shoes and accessories to the general public. Partner Greg Stovall credits their success to being able to offer the latest shoe fashions at warehouse pricing. The move was not only to increase exposure from I-25 but make access more convenient for his customers.
Art Paterson and Greg Linde of Sperry Van Ness represented the Shoe Box, Jim Smith and Keith Meyer of Maestas and Ward represented the Landlord.
For more information on leasing, brokerage representation or other services through Sperry Van Ness, call (505) 256-1255 or email me at walt.arnold@svn.com.
Walt Arnold, SIOR, CCIM
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