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.
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