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.
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.
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, NM retail market featured in Western Real Estate Business
July 2, 2010 at 7:39 am | Posted in Uncategorized | Leave a commentTags: absorption, albuquerque, broker's opinion of value, commercial, CRE, in the news, landlords, leased space, market report, new construction, New Mexico, property, real estate, retail, sperry van ness, tenant representation, tenants, vacancy, walt arnold
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 6.21.10: Retail Markets
June 24, 2010 at 5:02 pm | Posted in Radio Show Reports | Leave a commentTags: albuquerque, asset, bid/ask, commercial, CRE, economy, for lease, investments, leased space, market, market report, real estate, recession, retail, single tenant, tenants, triple net lease
>>> Click here to listen to the Commercial Real Estate Report for 6-21-10! <<<
Bob Clark, News Radio 770 KKOB: Walt you wanted to talk about the retail market, what do you have for us?
The retail market is trying to get up off canvas. It has been knocked down by the one-two punch of the credit crisis and the weak economic recovery. In 2007 retail investment sales across the country were 78 Billion, in 2009 retail investment sales slid to 17 Billion.
Retail investment activity has increased slightly this year both in supply of properties available and buyer interest.
One part of the buyer interest is a narrowing of the bid/ask gap in pricing, which is critical to get properties listed and sold. And there have been some reports of regional banks and credit unions opening up lending for the right asset. The flow of capital is crucial.
Bob: What will it take for retail investment sales to improve and what is it going to take to get the retail market out of its current condition?
The economy is going to have to improve significantly. That said one area that is starting to show some signs of life are the single tenant triple net leased properties. One key factor is that buyers are now looking for stability and cash flow. So this is a good sign for the retail investment market although a small one. As I said one group of investors is the triple net buyer; the other is the optimistic buyers looking for distressed assets.
And it could be a while before the distressed assets are dealt with by lenders either through foreclosure or loan restructuring of those assets. According to Real Capital Analytics 41.7 billion in Continue Reading Albuquerque Commercial Real Estate Report 6.21.10: Retail Markets…
Albuquerque Commercial Real Estate Report 6.14.10: Leasing Commercial Space
June 21, 2010 at 7:45 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, asset, commercial, CRE, demand, for lease, industrial, leased space, market, New Mexico, office, opportunities, property, real estate, retail, sperry van ness, tenant representation, tenants, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 6-14-10! <<<
Bob Clark, News Radio 770 KKOB: Walt, If a company is interested in leasing a commercial property what do they need to think about?
This process is called tenant representation and it is a process that helps companies analyze the best alternatives in the lease market. At Sperry Van Ness we have a well defined process that coordinates all the variables in the market ending with the best decision for a tenant.
But, what companies need to consider is this:
First, get out your lease today and find out when it expires and see if there are any options or provisions to remain past the expiration date.
Once you know when the lease expires and also know that the space isn’t meeting your needs any longer, get in touch with me at Sperry Van Ness and we can explain the process of tenant representation.
Landlords deal with leases all the time, most tenants deal with it once every three to five years. So it is definitely a benefit to a tenant to work with a commercial broker on looking for lease space or considering a renewal.
Bob: Is there a certain time a tenant should begin thinking about moving, how long before the lease expires should a company plan for a move.
The best answer for that is, it varies, and it varies by the size of the tenant. A smaller tenant can usually make the decisions Continue Reading Albuquerque Commercial Real Estate Report 6.14.10: Leasing Commercial Space…
Investment Opportunity: Corrales Overlook Office Condos
June 5, 2010 at 9:07 am | Posted in Property Listings | Leave a commentTags: commercial, condos, investments, leased space, listings, New Mexico, office, office condos, office market, office park, opportunities, real estate, rio rancho, tenants, walt arnold
Corrales Overlook Executive Plaza
1350-1400 Jackie Road SE, Rio Rancho, NM
• Attractive Office Park w/Condominium Units for Sale/Lease (See brochure below)
• Land Size: ±1.88 acres
• Total Bldg. Size: Bldg. 1: ±11,196 sq. ft., Bldg.2: ±12,204sq.ft., Bldg. 3: ±11,196 sq. ft SOLD, Total: ±23,400 sq. ft.
• Sale Price: $145/sq. ft. NOW $119/sq. ft. (shell costs only); 2.5% to outside broker (shell costs only)
• Zoned C-1
• Units also available for lease: $18.50/sf/yr NNN depending on build-out; Lease Term: 5+ years
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 office space secured for Outcomes Health Information Solutions
May 26, 2010 at 7:41 am | Posted in Uncategorized | Leave a commentTags: albuquerque, commercial, CRE, for lease, healthcare, leased space, New Mexico, office, office market, property, real estate, sperry van ness, sublease, tenants, transactions, walt arnold
Sperry Van Ness®/Walt Arnold Commercial Brokerage, Inc. along with Matt Hart of Studley, Inc. represented Outcomes Health Information Solutions, LLC in securing a location at 7850 Jefferson NE, Albuquerque, NM. Outcomes has occupied approximately 19,000 square feet in the Ashcraft Real Estate owned property. Outcomes has taken advantage of the sublease market and has taken over a space in the property formerly occupied by Lifemasters. The space was in “move-in” condition, including furniture and infrastructure. Outcomes will eventually have 200-300 people at this location.
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.
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 commentTags: albuquerque, Class A, commercial, CRE, economy, for lease, industrial, job growth, landlords, Leasing Information Network, new construction, office, tenants, vacancy, warehouse
>>> 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…
Albuquerque Commercial Real Estate Report 4.12.10: Vacancy Solutions
April 23, 2010 at 9:35 am | Posted in Radio Show Reports | Leave a commentTags: albuquerque, commercial, demand, Green 2V, investors, leased space, listings, market report, nonprofits, property, radio show, real estate, recession, rio rancho, sperry van ness, tenants, vacancies, walt arnold
>>> Click here to listen to the Commercial Real Estate Report for 4-12-10 <<<
Bob Clark, News Radio 770 KKOB: Walt you wanted to start with some creative solutions for landlords in helping them fill some “hard to fill” vacant spaces in their buildings.
Yes good morning Bob. Leasing space is difficult these days and some spaces will be or have been vacant for over a year. So here are hopefully some creative alternatives to leasing that might help fill some of those tough vacancies.
First is to consider becoming a patron of the arts. A landlord can donate the space to artists which might create some more traffic to the center or donate the space to a nonprofit and get a tax write off; another creative leasing approach is to sell some of the vacant space. A landlord can create a condo of the vacant and sell the vacant space to help raise cash and diversify risk. Seller financing, if possible, could also make the condo easier to sell.
Another possibility is to look for recession proof tenants. For example, $45 billion was doled out on pets last year. Pet focused companies’ are a good prospect. That pampered pet’s life is looking better and better, I want that life. So look for industries like the pet industry that are recession resistant. So those are a few thoughts that might help get some space leased during these tough times. Give me a call to discuss further.
Bob: Walt you were at the announcement for Green2V in Rio Rancho last week, can you tell us about the new company.
Yes I was at the announcement for Green 2V a solar energy company that will spend $500 million over the next five years and will eventually have 1 million square feet under roof, which is about the size of Coronado center, for a size perspective.
What really struck me about the press conference, was not the over 250 people there, including the governor, a senator, the mayor of Rio Rancho and numerous other state and local officials, but it was the focused effort of the City of Rio Rancho Continue Reading Albuquerque Commercial Real Estate Report 4.12.10: Vacancy Solutions…
Walt Arnold, SIOR, CCIM
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