Archives for June 2015

Thanks to all of the brokers, sponsors and guests who attended the June 2015 CCIM Deal Making Session and to those who shared the June 2015 CCIM Properties. Over 19 million dollars of commercial real estate properties available for sale were presented from all over New Mexico.

	Name	Property	Price
1.	Jim Hakeem	680 Quantum Rd., Rio Rancho	$495,000
2.	Keith Meyer, CCIM, SIOR & Jim Wible, CCIM	2351 Aztec Rd. NE	$725,000
3.	Coralee Quintana	200 Oak Street NE	$1,200,000
4.	Jim Smith, CCIM, SIOR	208 Murray Rd. SE	$645,000
5.	Rich Diller, CCIM, SIOR &John M. Henderson, III, CCIM	2301 2nd St. SW	$495,500
6.	Jim Wible, CCIM & Keith Meyer, CCIM, SIOR	NWC Unser Blvd. & Abrazo	$536,768
7.	Jim Smith, CCIM, SIOR	4516 Anaheim Ave. NE	$2,229,000
8.	Nicole Rhodes & Gannon Coffman	8800 2nd St. NW	$259,900
9.	James F. Wheeler, CCIM	8201 Cerrillos Rd., Santa Fe	$5,900,000
10.	Mark Thompson, CCIM	San Marcos | Victoria, TX	$4,500,000
11.	Clayton King & Keith Meyer, CCIM, SIOR	SWC Coors & Western Trail	$8.50/SF/ Entire Parcel
12.	James F. Wheeler, CCIM	27783 I-25, W. Frontage Rd. Santa Fe	$1,325,357

The REALTORS® Commercial Real Estate Market Survey measures quarterly activity in the commercial real estate markets. The survey collects data from commercial REALTORS®. The survey is designed to provide an overview of market performance, sales and rental transactions, along with current economic challenges and future expectations
2015.Q1 Survey Highlights

• 60% of commercial REALTORS® closed a sale.
• Sales volume rose 11% from a year ago.
• Sales prices increased 4% year-over-year.
• Cap rates averaged 7.8% during Q1.2015.
• Leasing volume advanced 5% from previous quarter.
• Leasing rates increased 3% over previous quarter.
• Concession levels declined 4% on a quarterly basis.
• Inventory shortage topped the list of current challenges, followed by buyer-seller pricing gap and local economies.
• The estimated average transaction increased from $1.6 million in Q4.2014 to $1.7 million in Q1.2015.

The REALTORS® Commercial Real Estate Market Trends measures quarterly activity in the commercial real estate markets, as reported in a national survey. The survey collects data from REALTORS® engaged in commercial real estate transactions The survey is designed to provide an overview of market performance, sales and rental transactions, along with information on current economic challenges and future expectations.

Real gross domestic product (GDP) clocked an annual rate of $16.3trillion in the first quarter 2015, based on the first estimate of theBureau of Economic Analysis. On an annual basis, the economy grewat 0.25 percent. As revisions to the figure are expected in the followingmonths, possibly crossing into negative territory, the bottom line is thateconomic growth for the first quarter was flat at best. On the upside,employment trends and consumer confidence continued on an upwardcurve during the quarter.

Commercial real estate proved resilient during the quarter, withREALTORS® reporting continued improvement in fundamentals andinvestment sales. Sales of commercial properties rose 10.6 percent ona year-over-year basis, a quickened investment pace compared withthe 9.5 percent increase from the prior quarter.

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By: George Ratiu (National Association of REALTORS®)
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An international contract customer center in Rio Rancho announced Tuesday plans to add 250 jobs in the next few months.
Convergys, located on Zenith Court near Alliance Data Services, made the announcement at a news conference. Among those attending were Gov. Susana Martinez, Mayor Gregg Hull and other government officials, including Sandoval County Commissioners Don Chapman and Glenn Walters.
Jami Grindatto, president and CEO of the Sandoval Economic Alliance, said the company will grow by 250 jobs. It now has 600 employees at the site, formerly Stream Global Services.
Convergys, which acquired Stream Global last year, has clients in communications, retail, health care, financial services and government, providing technical support and customer service.
Grindatto said the company plans to make the new hires by the end of the third quarter this year. Convergys has no plans to expand the building, and is instead “reworking” the inside of thefacility to accommodate the new hires, he said..
He said the alliance, formed last year to attract new industry and jobs to the county area, has worked to help Convergys find hiring agencies for the past six weeks.
Randy Johns, Convergys vice president of operations, credited the governor for her work attracting business to the state.
“A global employer of over 125,000 employees, Convergys does have choices where we locate,” he said. “… The state of New Mexico, under Gov. Martinez’s leadership, has made it extremely attractive for Convergys to conduct business here.”
Martinez thanked the current employees at the call center and the people of Rio Rancho for their work as employees and community members.
“I want to thank Rio Rancho for making it such a wonderful place to live and work,” she said. “Just recently, in the face of tragedy, the people of Rio Rancho had come together when their neighbors really needed it most. That is what we call a community; that is the true definition of a community.”
Hull thanked Convergys representatives for staying and expanding in Rio Rancho.
“As a pro-business city, we in Rio Rancho in municipal government stand ready to assist you in any way we can in related to your forthcoming expansion and any other expansions you want to do here in Rio Rancho,” he said.
By: Antonio Sanchez (Rio Rancho Observer)
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The region’s economic development in the next five years hinges on improving the area’s overall quality and spurring innovation and entrepreneurship, according to a strategic plan released today by the Borderplex Alliance.
The 155-page report said those things must be done as “one well-oiled, united economic region” to succeed.
The report, illustrated with photos of the region, contains several recommendations dubbed as “big ideas,” including creating a Western theme park in El Paso and making the region the “entrepreneurial gateway to Latin America.”
It recommends creating a Native American attraction in Las Cruces and creating “Old Mexico” events in Juárez as quality of life initiatives.
It also recommends regionalizing El Paso’s airport and renaming it the El Paso/Las Cruces International Airport.
The report, “2015 Strategic Recommendations,” was done by Angelou Economics, an Austin economic development and site selection firm.
“If the region does not adopt and follow a new strategic plan for economic improvement, it risks falling behind and suffering economic stagnation, increasing poverty and crime, declining work skills, persistent low wages and economic irrelevance,” the report’s executive summary concludes. “Failing to act quickly and cohesively could cost the region its chance to become a competitive player in world markets.”
The report sets three main goals: regional collaboration spearheaded by the Borderplex Alliance; become known for quality in workers, lifestyle and other areas; and spur innovation and entrepreneurship by creating an ecosystem to support business development.
Rolando Pablos, Borderplex Alliance chief executive officer, said in a written statement that the strategic plan is a blueprint to move the region forward in the next five years.
“The power is in collaboration. All public and private elements in our region must come together and speak with one voice,” Pablos said.
The Borderplex Alliance is a private, regional economic development organization based in El Paso. The alliance paid more than $200,000 for the report, Pablos said.
Bob Cook, an El Paso economic development consultant and former president of the El Paso Regional Economic Development Corp., which in late 2012 merged into the Borderplex Alliance, said he agrees economic development has to be done regionally to be effective even though that is difficult to do.
“The concepts that are laid out in the report as I understand them are good focal areas,” said Cook, who no longer has ties to the Borderplex Alliance. “Some of these things have been talked about before, but now, apparently, is the right time to pursue some of them.”
Cook had not seen the report when interviewed by the El Paso Times on Tuesday evening. He made his observations based on a brief summary given to him over the phone by the Times.
Cook was pleased that the report stressed the need for creating more small businesses in the region.
“El Paso has a history of companies started here, but that don’t stay here,” Cook said. “Those companies tend to get more involved in the community” and help improve the quality of life, he said.
The report also summarizes assets and lists specific recruitment strategies for six target industries identified in a report done by another consultant early this year. The target industries are: defense and aerospace; life sciences; tourism; advanced manufacturing; business support services, which include call centers; and advanced logistics.
The Western theme park idea is one that’s been floated in El Paso a number of times over the years. Cook said he remembers a consultant’s report being done more than 10 years ago about a Western theme park, but the area at that time did not have the population and income levels to adequately support it, he said.
Angelos Angelou, head of the Austin firm that did the report, noted in a letter to the Borderplex Alliance and attached to the report that many of the findings are already in progress.
“We applaud your ongoing accomplishments,” he wrote. “Our hope is that you will use this report as a guide to continue building the blueprint that will allow the North American Borderplex Region to thrive.”
The Borderplex Alliance will now create a regional steering committee and task forces to review the report’s recommendations over the next three to four months and create an implementation plan.
It will work with “local, state, national, and international leaders to further define and roll out a regional action plan over time that is both actionable and implementable at all levels and in all areas of the borderplex region,” the alliance said.
It took Angelou Economics just over a year to complete the report. It received input via interviews and focus groups with 150 stakeholders from El Paso, Juárez, Santa Teresa and Las Cruces, and from online surveys completed by 865 business people and others in the region, the firm said.
By: Vic Kolenc (Las Cruces Sun-News)
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