Archives for September 2015

This infographic contains a list of the commercial reports NAR’s research department has created or contributed to in 2015.
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• Commercial Real Estate Outlook: 2015.Q3
  • Macroeconomic conditions continued improving at a moderate pace in the second quarter of this year.
  • Demand for commercial lease space continued advancing in the second quarter of 2015, rebounding from the soft performance of the wintry first quarter.
  • While construction has been ramping up across all property types, the gap between demand and supply continued to add downward pressure on availability.
  • The apartment sector was the only exception, as new supply exceeded demand this year, resulting in a slight increase in vacancies.
• Commercial Lending Trends 2015
  • Commercial vacancy rates declined for the core property types. Availability is expected to continue contracting for office, industrial and retail properties in 2015 and beyond.
  • Vacancies for apartments are estimated to rise, due to gains in supply.
  • Commercial rents have risen across the board, and are projected to advance this year to the tune of 2.5 percent to 3.7 percent.
  • Lending conditions in REALTOR® markets notched another year of sustainable recovery.
• Commercial Member Profile 2015
  • The Commercial Member Profile describes the business activities, demographics and information needs of NAR members who are commercial real estate professionals.
• Commercial Market Trends: Q2.2015
  • Sixty percent of commercial REALTORS® closed a sale.
  • Sales volume rose 9 percent from a year ago.
  • Sales prices increased 7 percent year-over-year.
  • Cap rates averaged 7.5 percent during Q2.2015
  • The average estimated transaction value increased from $1.7 million in Q1.2015 to $2.0 million in Q2.2015.
  • Fifty-four percent of members completed a lease transaction
  • Leasing volume advanced 5 percent from previous quarter.
  • Leasing rates increased 3 percent over previous quarter.
  • Inventory shortage topped the list of current challenges, followed by buyer-seller pricing gap and local economies.
• Like-Kind Exchanges: Real Estate Market Perspectives 2015
  • For a significant proportion of real estate market participants, like-kind exchanges (LKE) provide an important vehicle to dispose and acquire property.
  • Like-kind exchanges are available to individuals, partnerships, corporations, limited liability companies, as well as trusts.
  • The main requirement of a like-kind exchange is that the disposition of one property and acquisition of another property must be part of an integrated transaction, rather than two individual transactions.
  • REALTORS® are active participants in like-kindexchanges as investors, brokers and agents, intermediaries and professional advisors.
  • Sixty-three percent of REALTORS® participated in a like-kind exchange transaction during 2011-14.
  • In 2014, REALTORS®’ average fair market value of all transactions was $7.0 million
  • Like-kind exchanges accounted for 39 percent of total FMV, or $2.7 million per respondent.
  • Ninety-six percent of REALTORS® indicated a decrease in real estate values in case of repeal of like-kind exchange provisions.

• See the commercial research reports.
• Learn more about commercial real estate.

By: National Association of REALTORS®
Click here to view source article.

Downtown Albuquerque has had some big wins this year. More breweries are opening in the urban core, new apartments and a grocery store are being built, and Molina Healthcare of New Mexico transitioned 800 employees to its new headquarters near City Hall.

Now, Rural Sourcing Inc., which announced yesterday it would open a development center in Albuquerque, has its eyes set on Downtown.

Ingrid Miller, the COO of Rural Sourcing Inc., said the company has looked at several Downtown office spaces.

“We need something in the next few weeks,” said RSI chief operating officer Ingrid Miller.

She said the company is looking for a temporary location between 5,000 and 7,000 square feet. It’ll use that space to hire its first tech employees.

During the set up, the company is shopping for a larger, permanent place, either for lease or for sale that could house about 125 employees in all. Miller said RSI has hired Scott Throckmorton with ARGUS Investment Realty to find a space.

Gov. Susana Martinez said yesterday that the company will use $250,000 in Local Economic Development Act (LEDA) funds for building improvements. Additionally, Albuquerque Mayor Richard Berry said the city will contribute $250,000 if the company moves Downtown.

The $500,000 that’s potentially available in building improvements has property owners interested.

RSI CEO Monty Hamilton told Business First’s sister paper Atlanta Business Chronicle that the company seeks out older historic buildings in downtown areas for its software development centers and then renovates them into workplaces with a “hip, cool vibe.”

“Being a part of that revitalization…is a central part of our business model,” Hamilton said.

RSI’s Atlanta-based headquarters are in the historic Biltmore Hotel. Its Augusta offices are located in a renovated mill. And the company is a year into the process of renovating a historic 1930s Buick dealership for its offices in Mobile, Alabama.

The pressure for Downtown Albuquerque stakeholders is whether it could deliver a renovated space by January, which is when the company is aiming to be in its new center.

“It’s definitely aggressive,” Miller said. “We’re hoping to find something that’s kind of 90 days to move in. We’ve toured a bunch already and there are some options that would definitely require a year of renovation.”

RSI’s requirements are pretty specific. The company needs to start with about 7,000 square feet of space, with the possibility of later expanding to 15,000 square feet. It also needs a kitchen and a room for entertainment. Much like other tech companies, Miller said RSI employees can take a break to play video games or use a foosball table.

Miller said the company wants to find the right space, and aren’t trying to rush into buying something.

“We’ve seen some things we think we could turn around somewhat quickly, but if our hearts are won over by a building, [renovation] is something we’re not afraid to do,” Miller said.

By: Stephanie Guzman (Albuquerque Business First)

Click here to view source article.

At the LIN September 2015 Meeting on September 23, 2015, 16 excellent properties were presented. Thank you for presenting properties and attending the meeting! Thank you to our host, 4001 Jefferson Plaza NE.
View September LIN properties here.
View September LIN PowerPoint presentation here.