News from SIOR, NAIOP, and Urban Land Institute conferences.
Bob – Walt, what do you have for us today?
Walt – Well, I went to the Society of Industrial and Office Realtors (SIOR) market review and outlook at the NAIOP meeting on Monday and the Urban Land Institute meeting on Friday so I got some great info last week and wanted to pass some of it along.
The key factor at both meetings appears to be the need for jobs to start to get us back on a road to recovery. New Mexico could see more job losses in government sectors as all levels of government are feeling the pinch of cutbacks.
Another topic was the office market vacancy which is 18.3% and one of the reasons is emerging technologies, as workers are working more effectively with technology. Workers are able to connect to the internet wirelessly almost anywhere. This trend will continue to have an effect on the office market.
Bob – Walt, that trend of working from home has been around for some time, but hasn’t really caught on. What’s different this time around?
Walt – This time it also involves all those 20 and 30 year olds that multitask and can work from anywhere at any time. So working from wherever will continue to grow stronger and will have some negative impacts on office space.
Bob – You also mentioned the Urban Land Institute, what was the discussion at that meeting?
Walt – One interesting point from Mark Lautman was that all the states around New Mexico are winning the site selection battle for new companies and are gaining jobs; unfortunately, New Mexico is not really in the game at this time. So we need to do something to get out of this scenario and start making New Mexico “the place” to relocate.
Todd Clarke also spoke about the strength of the apartment market and the need for at least 4,600 more apartments in Rio Rancho and 1,300 more apartments needed in Albuquerque. There was also discussion on how the youngest of the adult population, the millineals, they have a desire for less space and less things and that will affect how apartments will be built in the future and also where. There is a much greater demand for housing to be on transportation corridors and in developments that minimize driving.
Bob – Anything else for today and how can people contact you to talk about commercial real estate?
Walt – There were a couple of quotes that came out of the meetings, one that I would like to quote was regarding how Landlords need to make vacant space as appealing to tenants as possible. Debbie Harms,SIOR, quote was,” You aren’t going to have to buy a prom dress for that pig yet, but you are going to have to put some more lipstick on it.” So get those vacant spaces ready to lease, it will help!
If you want to talk about commercial real estate. Give me a call, Walt Arnold, 256-1255, website waltarnold.com you can also follow me on Twitter of find me on Facebook for up to date news on all things CRE. Talk to you next week.