Albuquerque Commercial Real Estate News

Albuquerque Commercial Real Estate Report 5.3.10: Leasing Information Network

>>> 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…