Tag Archives: retail

Albuquerque CRE Report 12.10.12

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Bob - Last week we talked about the improving commercial retail market. Are more shopping center owners looking at selling their properties as the retail market shows continued signs of improvement?

Walt - Bob, good morning, as more owners are considering the question “is now a good time to sell”, what is really needed is more buyers or investors asking the question “are we ready to take on an acquisition or purchase a property?” And how do we purchase the property in order to get favorable financing?

Bob - So what you’re saying is, wanting to sell a property is one thing, but the most important part is having buyers wanting to invest?

Walt - It really is and here are some points for buyers to consider.

Think about worst-case scenarios, for example, what if a tenant leaves or to keep and retain tenants, rates have to be reduced?

The next point is “cash is still king” and one strategy is to purchase the property with cash and work out the financing details after the purchase. It provides more leverage on the purchase and more time to find the best financing without having to meet financing contingency dates in a purchase contract.

If you are seeking financing, be proactive and define what terms you want from the lender and get all information as soon as possible. Over communicate, get all lease details, read the leases and be able to respond quickly to the lender’s request for documents and information.

Lastly, be intuitive and follow your instincts. If something creates an uneasy feeling, act on it, dig into what the issue is and decide if the property is worth pursuing.

You can control the process when purchasing commercial real estate. Develop the plan and stick to it.

It’s a great time to consider investing in commercial real estate and at Sperry Van Ness we have the knowledge and experience that leads to a successful transaction.

Bob - Walt, how can people get a hold of you to talk about commercial real estate?

Walt - Thanks Bob, give me a call, Walt Arnold at Sperry Van Ness my direct line is 256-1255 our website is waltarnold.com. Sperry Van Ness is a full-service commercial real estate company with experience in working with buyers, sellers, landlords and tenants in commercial real estate sales, leasing, investments and management. Bob thanks for the time today, have a great week and we’ll talk next Monday.

Albuquerque CRE Report 11.19.12

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Pat - Walt, it starts this week, the Christmas shopping season, what are the predictions for this year’s shopping season?

Walt - Yes, good morning Pat, here we go! Online sales are predicted to increase by 12% which is also reflected in Fed Ex’s projected 13% increase in its number of shipments for the Christmas season.

The majority of retailers are predicting an increase in Christmas season sales for 2012. Most retailers are starting earlier than ever and many have already started Christmas advertisements.

Predictions for increase in sales are just over 4% overall and a 3% increase in sales at brick and mortar retail stores. Hurricane Sandy is having an impact on retail sales and predictions have been lower slightly due to Hurricane Sandy.

Just a quick recap on the Albuquerque regional market.

The Albuquerque retail market continues to show improvement with 263,000 ft.² of net absorption year over year. Filling the vacant space is good news and that leads to a decrease in the vacancy rate which is currently 11.2% and continues the pattern of improvement for the fifth consecutive quarter.

The Metro market has experienced 35,000 ft.² of construction completion and overall asking rates for all retail properties is $13 per square foot per year NNN, with rates ranging from seven dollars per square foot per year for neighborhood shopping centers to $36 per square foot per year for high traffic centers.

Pat - Walt how can people get a hold of you today to talk about commercial real estate?

Walt - Thanks Pat, give me a call, Walt Arnold, with Sperry Van Ness, my direct line is 256-1255, our website is waltarnold.com. Sperry Van Ness is a full-service commercial real estate company able to assist our clients and customers in all aspects of commercial real estate.

Pat, I want to wish everyone a great Thanksgiving holiday, we all have things to be thankful about, try to concentrate on those things this Thanksgiving holiday. Thanks for the time today, and Pat, I look forward to talking to you soon.

Walt Arnold on the 1050 Radio Show

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Hosted by Terrie Q. Sayre

Showcasing Albuquerque’s Local Economy and the People Who Work It

Listen Saturday mornings at 10am to hear Albuquerque business owners talk about what they make, what they sell, and how they succeed.

The 1050 Show is a great place to learn from others. Host Terrie Q. Sayre interviews representatives of three different local businesses each week. You’ll hear new ideas about marketing, production, distribution, and many other aspects of running a local business in a world-wide economy.

Listen To Walt Arnold on Saturday’s 1050 Show

 

Albuquerque CRE Report 6.25.12

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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.Chart pic

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.

Click Here to Listen To This Show

 

Albuquerque CRE Report 02.19.12

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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.

P – Parking, if you’re a retailer you need at least five spaces per thousand square feet (5/1000) of building to parking spaces ratio and the closer the spaces are to the front door, that is better.

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

CRE Report 09.10.2011

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Retail 2nd Quarter Rap Up

Bob – Walt, you wanted to talk about the retail market today.  What do you have for us?

Walt - Good Morning Bob. I was just reviewing the 2nd quarter retail numbers from CoStar and here are some of those numbers. The overall retail vacancy rate has increased slightly to 6.8%.  Average quoted rental rates  decreased from the first quarter to $13.58 per square foot per year.  86,000 square feet of space was still under construction at the end of the quarter.
Bob – Can you give us some details on Tenants in the market, who’s moving out and who’s moving into spaces?

Walt- There hasn’t been a lot of movement. Murray Billiards moved out of 8,820 square feet at 10020 Coors Bypass, Elyte ATM vacated 7,600 square feet at 8900 Menaul.

Some tenants moving in were Firestone into 17,362 square feet at 2631 Coors, ATI moving into 14,640 square feet at Montgomery Plaza and El Mezquite occupying just over 14,000 square feet on Southern.  Tomato Café signed a lease for 6,000 sf at the Shops at Montano and Aaron Rents leased 5,600 sf at Guadalupe Plaza.

Bob – We usually talk about construction on these quarterly reports, are there any new projects coming out of the ground?

Walt – There was 117,000 square feet of new construction; some notable construction deliveries include the Premier Cinema, 86,000 square feet in Rio Rancho and the Firestone on Coors.

Just a few trivia numbers for you, CoStar tracks the Albuquerque market with 56 million square feet of retail space in about 5,300 buildings, including 359 shopping centers. You just never know when you might need that information!

Bob – Walt, what is your crystal ball projecting for the retail market in the near future and what are the prospects for retailers this Holiday Season, which is approaching quickly?

Walt - It appears the retail market forecasters are saying the retail market will be rockier than expected for recovery over the next 12 months.  Statistics are pointing to a gradual recovery but; weak hiring, a flat housing market and sagging consumer and investor confidence are hampering the retail recovery.

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

Walt - Thanks Bob, Walt Arnold at 256-1255, our website is waltarnold.com.  If you’re considering buying, selling, leasing, tenant representation or property management in today’s commercial real estate market, give us a call at Sperry Van Ness.  We know how to navigate this difficult market.  We do it every day and we do it very well.  Let’s get together and discuss the Sperry Van Ness Difference in commercial real estate.

Bob thanks for the time today, have a great week.

CRE Report for 08.01.2011 – Real Estate Cycle Snapshot

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Market Snapshot

Bob – Walt, you mentioned Stephen Duffy from Moss Adams spoke last Monday at the NAIOP meeting.  Did he have some interesting news on the commercial real estate front?

Walt – Good morning Bob, it was an interesting and enlightening talk.

He discussed how there is a tale of two markets, Class A assets in primary markets are experiencing strong values and demand for properties.  Current prices reflect a significant difference between trophy properties in major markets and assets in non primary markets. There is a flight to core assets and to quality.  Some good news is that all property types have moved out of recession into recovery in this real estate cycle.

 Bob –  Can you give us a quick snapshot of each property group and how they are faring?

Walt - Sure I’ll give a very brief summary:

Industrial – still fighting through oversupply, but quality properties are selling to investors.

Office – Struggling due to a lagging growth rate, however strong demand for Trophy properties.

Healthcare – Currently performing well in this market.  Medical office buildings are outperforming office properties.

Multifamily is strong and getting stronger.  Continued strong increases in rents are forecast.

Retail – Has strengthening occupancies and rates, there aren’t a lot of properties selling but again a strong flight to quality for example, Simon’s Properties purchase of ABQ Uptown.

Hospitality – is having rapid and strong growth in fundamentals.

Gaming Properties – There has been a freefall for most gaming properties since 2009, massive distress and defaults.  Tribal sovereignty has been confirmed by the courts and it might be difficult for lenders to foreclose on tribal properties.

So that a very short synopsis.

Bob -You mentioned the real estate cycle.  So what can someone do once they understand where they are in the cycle and maybe a more important objective is how can you create an exit strategy?

Walt - One thing I forgot to mention Stephen Duffy talked about was, there is opportunity in local non primary markets for local investors to analyze the market and make some good investments.  Which ties into your question, yes exit strategies are so important.  What is the plan? How long until the next peak? Is this a time to get in or get out?

Obviously, each situation is different, at Sperry Van Ness, we can help analyze the market, look for trends and develop a plan to get in and also a plan to exit the market, through in depth planning, analyzing the market and developing a strategy on when to acquire and sell assets.

 Bob – Anything else today and how can people reach you?

Walt - Thanks Bob, I want to mention the auction this Thursday August 4th, 3801 Eubank, opening bid 396,000, a 7,000 square foot office building in Eubank. That’s $56/sf.  My number is 256-1255, website www.waltarnold.com thanks Bob and I’ll talk to you next Monday.

Albuquerque Commercial Real Estate Report 7.26.10: Hiring A CRE Broker

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Click HERE to listen to the Commercial Real Estate Report for 7-26-10!

Bob Clark, News Radio 770 KKOB: Walt, if I needed to hire a commercial real estate broker, what skills and abilities would I look for in that person?

Good morning. Commercial real estate is so different from residential real estate and there are just so many more moving parts to the commercial business which includes office, industrial, retail, hospitality, self storage and apartments. There is the investment side; the owner user and also the leasing end of the business and each have their own intricacies. So first off you would want to make sure the broker is an expert in the field of commercial real estate you need. That is the first criteria.

Bob Clark: What else is important in selecting a commercial broker?

Having a level of experience which might include membership in either the CCIM Institute, which requires years to complete the certification process or an SIOR, a select group of 2,800 commercial brokers worldwide is an important component in selecting a broker to work with.

At Sperry Van Ness we talk about having encyclopedic market area knowledge and stress being the recognized expert in the market area. Someone looking for a broker wants to make sure they understand the market and have strong knowledge of it.

Another important trait is a broker that listens to your needs and assesses those needs and then works diligently to complete the transaction and keeps everyone apprised of the progress as it moves toward the completion

Bob Clark: Walt you have talked before about all the parts of the commercial transaction, how can a broker help put it all together?

There are many parts to the puzzle of a commercial transaction and making sure your Broker understands those pieces, like the ALTA survey, Phase One environmental report, space planning, financing, the lease document, the Tenant Improvement process including TI drawings dealing with architects, contractors, attorneys, owners and tenants requires someone with many skills to help analyze the commercial transaction from start to finish and beyond. Continue reading →

Albuquerque Commercial Real Estate Report 7.19.10: Market Resources

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>>> Click HERE to listen to the Commercial Real Estate Report for 7-19-10 <<<

Bob Clark, News Radio 770 KKOB: Walt this is such a difficult environment in commercial real estate, do you have any advice on how to navigate this market.

Walt Arnold: Bob, this is a commercial landscape seen for the first time.  We are in an extremely tight credit market, strict regulations from the feds on lending, high unemployment and many financial constraints on companies.

This is a market that requires professional advice from someone that is in the commercial real estate market every day.  At Sperry Van Ness we are analyzing this market daily, we are up to speed on the developments in the market and can advise landlords, tenants, buyers and sellers on how to position themselves and their property to have the greatest amount of success in this market.

Bob: What are some of the services you provide that can help people make decisions?

Walt Arnold: We have a myriad of sources that we pay to belong to pull data from to provide our clients with the best information to make good decisions, along with being an SIOR, one of 2800 worldwide, and the CCIM membership that requires years of classroom study and analysis, I am able to provide clients a wealth of information to analyze each situation to its fullest.

Bob: You also have spoken before about Sperry Van Ness’ marketing materials and the online publishing system. Can you tell us more about it?

Walt Arnold: We are able to provide our clients with the best marketing materials for the properties in the industry.  We can also create a specific website for a specific property through our proprietary OTS system. We have the experienced brokers, tools and programs to analyze lease spaces for tenants or present property for sale to the largest number of Continue reading →