Bob – Walt last week you spoke about the office and industrial markets.
Can you give an update on the retail market?
Walt – Good morning Bob, The retail market remains robust, although a lot of the movement is a lateral move, meaning a tenant is relocating from another property in the metro area from one property to another. With virtually no new construction, if the market continues on its upswing of activity, the vacant space will get filled quickly and with little new construction on the horizon, the retail market could get very interesting as demands gets stronger. This might be a welcome site for landlords as they will be able increase rates.
Bob – Target is building its property in Uptown. Are there any other “Big Box” projects planned in the metro area?
Walt – The target property is a 165,000 square feet building and will transform the intersection of Indian School and Louisiana, but as far as other “Big Box” users, we are probably unlikely to see any entering the market in 2012.
When I look at the retail numbers for the first quarter of 2012, the vacancy rate fell to 12.5%, down from last quarter and also down from a year ago. The overall median asking rate is $13.50, but that median number includes everything from small shop space to ABQ Uptown so location of the retail store is crucial when determining the lease rate. The rate could be from $5.00/SF/NNN in small community centers to $45.00/SF/NNN in ABQ Uptown. The rates are based on location, traffic and the condition of the center.
Some of the notable deals were Dick’s Sporting Goods, 49579 at Cottonwood, A 14,800 square foot strip center on the Paseo Corridor a 4,287 square foot freestanding restaurant at Montgomery Plaza.
So Bob, the retail market is slowly filling up the supply of vacant space, which will increase demand for retail space, which will create interest from developers to assess the possibilities of constructing new retail space and the demand will cause landlords to push the envelope on rates.
The real estate cycle continues.
Bob – Walt how can people get a hold of you to discuss Commercial Real Estate?
Walt – Thanks Bob, Call me 256-1255 my website is waltarnold.com follow me on twitter @waltarnold. If you’re looking to purchase office, industrial, or retail properties give me a call to discuss your real estate requirements.
Sperry Van Ness is a national commercial firm with 160 offices across the country. We position buyers, sellers, landlords and tenants to make great choices in commercial real estate. Give me a call to discuss the Sperry Van Difference. Thanks Bob, have a great week.