Bob - Walt, our weekly talks focused mostly on the Albuquerque metro market, are there other commercial real estate developments going on in the rest of the state, that might be of interest or noteworthy?
Walt - Bob, good morning, the big story in development is happening in Santa Teresa on the southern border of New Mexico.
Union Pacific has a $400 million intermodal facility and they have already spent about $150 million in the project with a scheduled completion date in 2015 and 600 employees will be working at facility when it’s at full capacity.
The facility will be a refueling, crew change and intermodal facility with trucks, rail and air delivering products throughout the country.
This is a big investment in New Mexico by Union Pacific Railroad and it will spur growth in Santa Teresa and surrounding communities.
The project will also allow customers in the region to use Union Pacific’s intermodal ramp to load and unload cargo. This will be a big benefit to many companies throughout the region that need rail access.
Bob - I would imagine that there has been some development of commercial warehousing along with retail and residential projects around Union Pacific’s facility, is that taking place?
Walt - It is, there was strong development at Santa Teresa in the early 2000, but very little has been built since that time and this is causing for a shortage and industrial space.
So the space crunch along with products pouring out of Mexico’s maquiladoras increasing demand for industrial space. Several companies are building or beginning to start the process to build more warehouse space.
Bob your question is right on about residential housing. With new jobs being created, this creates demand for housing. Several developments are starting to come out of the ground and permits are being issued for new housing and the projections are over the next five years 1500 homes are planned in the Santa Teresa area.
So Union Pacific’s intermodal facility, along with strong demand to move product through Santa Teresa from Mexico is making a big impact in southern New Mexico. This project over time will provide thousands of jobs and homes, along with millions of square feet of commercial and industrial space.
Bob - Walt, how can people get a hold of you today to talk about commercial real estate?
Walt - Thanks Bob, give me a call, Walt Arnold with Sperry Van Ness, my direct line is 256-1255, and our website is waltarnold.com. If you’ve got questions regarding commercial real estate for a commercial real estate requirement, let’s talk.
Bob, have a great week and we’ll talk next Monday.