Archives for November 2015

Lawrence Yun
Commercial real estate in all major sectors will continue to improve but the prospect of short-term interest rates going up as the Federal Reserve seeks to tighten credit could complicate market growth in the year ahead.
NAR Chief Economist Lawrence Yun told Realtors® at the commercial real estate outlook yesterday at the 2015 Realtors® Conference & Expo in San Diego. He said that vacancy rates in the major commercial market sectors—office, retail, manufacturing, hotel, and multifamily housing—are likely to continuing declining in 2016, even as new projects come on line to expand capacity.
He’s forecasting vacancy rates in the office sector to drop to 15.6 percent this year from 16 percent last year, and to further improve to 15 percent in 2016. In the industrial sector, vacancies will end the year at 11.7 percent, down from 12 percent, and drop further to 8.8 percent in 2016. In retail, vacancies will end 2015 at 13.2 percent, compared to 13.8 percent last year, and will drop to 12 percent next year. And in the multifamily sector, which has seen big growth in the last several years as tight credit conditions make it hard for young households to buy, vacancies are expected to stabilize at 7.1 percent, this year and next year
Action by the Federal Reserve to tighten monetary policy by raising short-term interest rates, either in December or January, and then to continue tightening throughout 2016, creates unknowns for commercial markets. But Yun pointed out that higher financing rates won’t necessarily follow the Fed tightening, because many factors other than what happens to short-term rates can influence the direction of interest rates.
Against continued strengthening of the commercial sector, some analysts are asking about the formation of an asset bubble gaining strength similar to the one that brought down markets half a dozen years earlier. But that is unlikely, said Jim Costello, senior vice president of Real Capital Analytics, who also spoke at the forum.
Among other things, properties today are far more conservatively underwritten then they were before the last downturn and there remains a confortable spread between cap rates and financing costs, he said.
One potential threat to commercial markets could come out of Washington, and that’s the curbing or elimination of 1031 tax-deferred exchanges to help reduce the federal budget deficit. Although it’s only informal talk at this point, NAR would be concerned if proposals were to be taken up in legislation next year, because the tax provision plays an important role in many commercial transactions, including small transactions that are the bread-and-butter of NAR’s commercial members.
Slides from Yun’s presentation.
By: Robert Freedman (Speaking of Real Estate – REALTOR® Mag Blogs)
Click here to view source article.

At the LIN November 2015 Meeting on November 18, 2015, 26 excellent properties were presented. Thank you for presenting properties and attending the meeting! Thank you to our host, 5700 Pasadena Ave.
View November LIN properties here.
View November LIN PowerPoint presentation here.

A well-known name in commercial real estate was recognized Tuesday at an Commercial Association of REALTORS® New Mexico event.

Debbie Harms, CEO of NAI Maestas & Ward, was named “REALTOR® of the Year” by CARNM at the group’s annual meeting at the Albuquerque Marriott. More than 200 people attended the festivities, which also marked CARNM’s 20-year anniversary.

“I’ve been given untold opportunities in this city, state and industry. I could not ask for a more wonderful industry and group of people to work with,” Harms said.

Harms has worked in the real estate industry for 30 years, is a licensed general contractor, and previously served as CARNM’s president in 2010.

Dan Newman, who won the organization’s REALTOR® of the Year in 2014, presented Harms the award.

When something needs to be done, she steps in with little fanfare. She’s served the real estate community in many ways, and gives back to the community by donating resources and time,” Newman said.

Harms was emotional when she accepted her award, saying there have been many people who have helped her along the way. In attendance was Dee Hines, who along with Frank Hines, owned a major development company that Harms once worked for. Harms has said the Hines were instrumental in guiding her career.

“I’ve been given untold opportunities in this city, state and industry. I could not ask for a more wonderful industry and group of people to work with,” Harms said.

Various commercial brokers who helped create CARNM during the group’s early days were given a nod. When CARNM began, it started as a downloadable Excel spreadsheet of all the local listings. The group later upgraded to a live online database, even before there were services like LoopNet that came on the scene.

“We were cutting edge and super sophisticated compared to where the rest of the industry was,” said Todd Clarke, a founder of CARNM.

Today, the website is a multiple listing service (MLS) that gives details on available buildings for lease and for purchase, among other features, for CARNM’s 400-plus members.

Also at the event, Bill Campbell was awarded CARNM’s first ever “Founder’s Award.” He was essential in asking the National Association of REALTOR® for approval to start CARNM.

Jim Wible, a land and industrial broker with NAI Maestas & Ward, was named CARNM’s new president for 2016. Marguerite Haverly of CBRE’s local office was selected as president-elect.

By: Stephanie Guzman (Albuquerque Business First)

Click here to view source article.

2015 CARNM Annual Meeting: Back to the Future
The 2015 CARNM Annual Meeting was a rousing success! We celebrated our 20th Anniversary and the history of CARNM.
Congratulations to the award recipients:

• 2015 REALTOR® of the Year: Debbie Harms, CCIM, SIOR, CPM
• Founder’s Award: William (Bill) Campbell
• President’s Awards: Tim House and Tim MacEachen, CCIM, SIOR

Congratulations and thank you in advance to our 2016 CARNM Board and thank you to our 2015 CARNM Board for your service!
We are grateful for all of the members, sponsors, press, and guests who attended. We have amazing professional community in which colleagues collaborate to make New Mexico strong. CARNM truly is the premier choice for commercial real estate in New Mexico – and it’s because of all of you! Thank you!
Click here to view pictures from the event on Facebook.
Click here to view the PowerPoint presentation from the Meeting.
Click here to view the program from the Meeting.
Click here to view Albuquerque Business First article about the Meeting and award recipients.