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March 2013 Newsletter

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Newsletter Header 2013Commercial Real Estate Vacancies Slowly Declining, Rents Rising

National Association of Realtors, 4th Quarter 2012, Commercial Connections

 

Commercial Real Estate Outlook is produced quarterly by NAR’s Research division and includes the latest market information on five major commercial real estate sectors – industrial, office, multifamily, retail and hospitality real estate.

 

Most of the major commercial real estate sectors show gradually improving fundamentals and are easily absorbing the relatively small amount of new space that is coming online, with a full recovery ahead in the multifamily market, according to the National Association of REALTORS® quarterly commercial real estate forecast published on November 26, 2012.

 

Lawrence Yun, NAR chief economist, says the market has been slowly building momentum. “Job creation is the key to increasing demand in the commercial real estate sectors,” he said. “The economy is expected to grow 2.5 percent next year, and with modest job creation, assuming there is no fiscal cliff, the demand for commercial space will gradually rise. The greatest friction that remains is a tight credit environment, notably for smaller properties.”

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January 2013 Newsletter

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Newsletter Header 2013Albuquerque Market Overview

Office – 4th Quarter 2012 Report
OfficeStatsQ42012
  • The overall vacancy rate declined by 31 basis points compared to last quarter, down 74 basis points from one year ago.
  • The North I-25 submarket showed improvement and saw a vacancy rate decline of 265 basis points from the end of 2011.
  • The Class B vacancy rate declined by 161 basis points from one year ago.
  • Overall median asking lease rates remain unchanged from last quarter and one year ago.
  • Lowe’s Home Improvement will expand its call center by 32,000 sf, boosting the office net absorption in the spring of 2013.
  • Consolidations and downsizing already announced for 2013 will offset positive activity in the coming year.

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December 2012 Newsletter

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Newsletter HeaderWalt Arnold CRE Report
Impact of the Looming Fiscal Cliff on the Commercial Real Estate Market
KKOB-AM, November 26, 2012

Bob — Walt, what impact does the looming fiscal cliff have on the commercial real estate market?

Walt — Bob, whatever happens with the expiring tax cuts and the scheduled new legislation, any reference to a “cliff” does not sound good.

The main impact for commercial real estate will be the long term capital gain rate, increasing from 15% to 20%.

This affects more than real estate investments, but it will lower capital (money) moving into commercial real estate

Although many pundits are saying that commercial real estate will come out of this is as a favorable investment.

Bob — Walt, that’s a little bit of talking out of both sides of your mouth. How can you say the fiscal cliff will create less money into real estate but commercial real estate is still a good investment?

Walt — Because I’m an optimist Bob!

Seriously if you look at the commercial real estate market, first there is lower volatility in commercial real estate, it’s an excellent way to diversify investments, while you’re invested in commercial real estate you will receive a yield on the investment and it’s also a hedge against inflation and don’t forget about the appreciation of the commercial real estate asset. This makes for a stable long term investment.

CRE values are depressed and the best time to invest, or the best time to buy is when there are great opportunities for upside. Bob, buy low is still a great strategy.

Bob — are there any other tax implications we need to be aware of with the fiscal cliff for commercial real estate?

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November 2012 Newsletter

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Newsletter HeaderLIBOR – What is it?

CCIM CIRE Magazine, Sept. Oct. 2012

The recent debacle involving manipulation of the London Interbank Offered Rate caused many to wonder what exactly it is. This benchmark interest rate used throughout the world’s financial systems is determined by the British Banker’s Association, according to Knowledge@wharton.com. Everyday at 11 am, 20 of the world’s largest banks submit interest rate data involving 10 currencies for 15 different loan terms “The BBA then throws out the top 15 percent of quotes and the bottom 25 percent, and takes the average of the remainder,” says Wharton finance professor Richard J. Herring. “This makes it seem highly unlikely that any one bank could manipulate the rate, but on closer inspection, it is possible.”

Percentage Rate picWhile less accurate than other benchmarks, LIBOR has persisted out of tradition and the fact that it incorporates risk into its assessment. “[LIBOR] is intended to reveal the banks’ real cost of money, incorporating all the market’s up-to-the-minute assessments of the risk of lending to the participating banks. In contrast, a US Treasury bond rate, while set more transparently, does not include default risk…so the two rates reflect a different set of concerns,” reports Knowledge@Wharton.com. Find out what alternatives might replace LIBOR by reading “The LIBOR Mess: How Did It Happen — and What Lies Ahead?”

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October 2012 Newsletter

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Newsletter Header ***SPERRY VAN NESS***

NATIONAL REAL ESTATE AUCTION

 www.svnauctionevent.com

ON-LINE BIDDING 

October 24th & 25th

3 New Mexico Properties: 

September 2012 Newsletter

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Newsletter Header

We are pleased to welcome our new 

team member 

Paul Cook

Paul Cook's Picture

Paul’s career in real estate spans over 25 years and has included land sales, residential and investment property development, Tenant and Landlord representation for Office and Industrial properties throughout New Mexico, as well as large ranch, recreational property sales and resource management.

One of Paul’s current clients is the owner of over 600,000 square feet of single and multi-tenant Office and Industrial property in Bernalillo County. In less than 1 year, (2011-2012), Paul has successfully brought the portfolio from 40% vacancy rate to 100% occupied. Over the years, Paul has developed a comprehensive knowledge for business and site analysis, property acquisition, exit strategies, financing, and a keen sense of navigating through what matters pertaining to completing transactions in a challenging market.

Paul has spent a lifetime fly fishing, and having spent a good deal of his youth working in the ranching business, has a great appreciation for honesty and hard work.

A quick meet and greet with Paul…

Where did you grow up?  -  ”I grew up in Santa Fe, NM, spending summers working on a 150 section cattle ranch.”

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Albuquerque CRE Report 9.24.12

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Bob - Walt, what do you have for us today?

Walt - Good morning Bob, today I’m talking about an auction event that Sperry Van Ness is having October 23 through the 25th. The website for the auction is svnauctionevent.com to see all the properties across the country in the auction. This auction includes all types of property including triple net properties, notes, and bank owned assets. The auction will feature over $100 million of real estate properties and loans that will be auctioned in a three-day period.

Bob, we have had some conversations about auctions before and auctions are a great way to turn a real estate asset into cash in a specified period of time. An auction will also provide what a willing buyer will pay for a property in this market. It’s a true indicator of where the market is at a point in time and what somebody is willing to pay for property.

Each property will have a four hour time window during the three day event to sell the property. The buyer will have to bring a 2.5% buyers premium to close property. Again the national auction event is svnauctionevent.com.

Bob - Walt are there any local properties in the auction?

Walt - Yes there are, we have three assets in the auction and today I’d like to talk about saddle Ridge subdivision in Edgewood, New Mexico which is 62, 1 acre lots that will be auctioned in the October 23-25 event.

This is a tremendous opportunity for someone looking for a subdivision that is ready to go at a tremendous price. The subdivision has underground electric, natural gas, water and telephone are already in. There is asphalt pavement on the roads that are servicing 31 of the 62 lots.

The starting bid for the subdivision is $945,000 or $15,242 per lot. This auction will occur on October 24 beginning at 11 AM and ending at 3 PM. You can access all the information at auctionsvn.com/saddleridge.

Bob, the purchaser of this property, 62 residential 1 acre single-family lots in a very desirable bedroom community with all the utilities ready to go, 31 of the 62 lots have paved roads, at $15,242 per lot, it would cost that much just to put in the utilities and infrastructure required for the subdivision.

The residential market appears to be getting stronger and this is a great opportunity for someone to purchase this property and either develop it themselves or sell the lots individually.

Bob - Walt, how can people contact you today to talk about your auction event?

Walt - Thanks Bob, Walt Arnold, 256-1255, our website is waltarnold.com and again the website for the saddle Ridge auction is auctionsvn.com/saddleridge. Bob have a great week!

 

Albuquerque CRE Report 9.17.12

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Terrie – Walt you give us information every week on the commercial real estate market, can we talk little bit today about how you got to this place in your career and also, with football season starting now, you played eight years in the National Football League, how has that influenced you in your business career.

Walt - Thanks Terrie, yes, I played a lot of sports in my life starting in high school where he participated in football, basketball and baseball. I then received a scholarship to the University of New Mexico where he played football and baseball at the University of New Mexico and. I was fortunate enough to get a free-agent tryout with the Los Angeles Rams and played a couple years in Los Angeles and ended up playing eight years in the National Football League mostly with the Kansas City Chiefs.

Commercial real estate has a lot of similarities and I have to perform on a daily basis. I can be as good as I want and success is really unlimited, but it does require a lot of dedication, desire, focus and skill just like in football. In the NFL, you’re basically as good as your last play, so there’s a constant measurement of my skills against other player skills. And that’s a lot like the business world; you’re constantly being measured against your competitors.

So in that sense football taught me a lot winning and losing, about trying to constantly improve and get better each day, which is a good thing.

Terrie – And about the company, Sperry Van Ness, can you give us a little more information about it?

Walt – Sperry Van Ness is a national commercial real estate company with offices in 160 markets across the country. We have specialties in all aspects of commercial real estate. The company was built on the principle of splitting our fees 50-50 with the selling or leasing broker and creating an environment of creating maximum competition and exposure on a property, to create the maximum results in price.

Every Sperry Van Ness advisor commits to and supports our culture of collaboration, which breaks down traditional brokerage company barriers in order to maximize our clients time and return.

The best companies know why they do business the way they do, and we believe the WHY for Sperry Van Ness advisors is committing to what is in the client’s best interest and maximizing value for our clients.

Terrie – Walt how can people get a hold of you to talk about commercial real estate?

Walt – Thanks Terrie, call Walt Arnold at 256-1255, website is waltarnold.com. If you need to talk about commercial real estate, let’s talk. Thanks Terrie have a great week!