Archives for February 2016

WASHINGTON (February 4, 2016) — Despite various global and domestic hurdles hindering economic growth, steady job gains and stable leasing demand should help keep commercial real estate activity expanding in 2016, according to the authors of an annual report published jointly by Situs Real Estate Research Corporation (RERC), Deloitte and the National Association of Realtors®.
According to the report, Expectations & Market Realities in Real Estate 2016—Navigating through the Crosscurrents, commercial real estate activity is forecast to gradually grow this year with demand for space holding steady across all commercial sectors. While commercial property values and price gains are expected to flatten after surpassing 2007 peaks in some major markets, investors will still benefit from the strong income flows generated from new and existing leases.
The fifth annual release of the joint report draws on the three organizations’ respective research and expert analysis and offers an objective outlook on commercial real estate through forecasts and commentary on the current economy, capital markets and commercial real estate property markets. A research-based assessment of the office, industrial, apartment, retail and hotel property sectors is also provided.
“Historically low interest rates, especially in treasuries, combined with commercial real estate’s stable prices and value make this asset an attractive investment,” says Ken Riggs, president of Situs RERC. “Looking into 2016, the commercial real estate market should moderate, which could stabilize prices.”
Vacancies are expected to continue to decline slightly in 2016 for all property types, except in the apartment sector, where they are forecast to increase modestly by the end of the year as more new project completions come onto the market. Continued job growth, demand exceeding supply and limited new construction (outside of multifamily) should lead to rising rents and steady investor returns, which overall will shift away from capital appreciation as price growth levels off in many markets.
Continuing on the same slow trajectory seen for many years, the U.S. economy – facing headwinds from a rising dollar, financial market volatility and geopolitical concerns – is forecast to grow at a rate of 2 percent to 3 percent in 2016, which is stronger than most global economies and enough to generate around two million net new jobs over the next year. Deflationary pressures related to low gasoline and energy prices are expected to diminish by mid-2016, in part because of robust growth in apartment rents.
“Supported by solid hiring in most parts of the country, the demand for ownership and rental housing will continue to increase in 2016 despite another year of meager economic expansion,” says Lawrence Yun, NAR chief economist. “While supply shortages will weigh on housing affordability and push home prices and rents higher, the housing sector will keep the U.S. economy afloat and lead the residential investment component of GDP growth by up to 10 percent this year.”
By: National Association of REALTORS®
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It’s been about eight months since a Facebook page announcing a new waterpark in Albuquerque was created and caused a a bit of a frenzy. It’s clear that many Albuquerque residents and visitors want more entertainment options.

It was learned soon after that Rocky Mountain Fun Factory, the company behind the waterpark idea, was on the hunt for about 50 acres of land to develop the project.

The Beach Waterpark in Mason, Ohio, is an example of a large modern outdoor waterpark that could be built in Albuquerque.

A lot has happened since then, and the company’s Facebook page has provided snippets of what’s been going on behind the scenes.

Tara McSweeney, general manager of Rocky Mountain Fun Factory, told Business First Wednesday that the waterpark’s investors have been busy scouting locations, lining up vendors and touring other waterparks across the U.S.

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Thanks to all of the brokers, sponsors and guests who attended the February 2016 CCIM NM Deal Making Session and to those who shared the CCIM NM February Properties. Over 15 million dollars of commercial real estate properties available for sale were presented from all over New Mexico.

	Name	Property	Price
1.	Rich Diller CCIM SIOR, Shelly Branscom, CCIM & Cole Flanagan CPA	1120 Pennsylvania NE	$1,200,000
2.	Todd Clarke CCIM	1420 Girard N.E.	$2,887,604
3.	Dave Hill CCIM	8650 Alameda NE	$598,575
4.	Tai Bixby CCIM	Pen Rd. Assemblage, Santa Fe	$3,200,000
5.	Todd Strickland	2426 Washington St. NE	$904,500
6.	Tim Luten	Wyoming Blvd. & Carmel NE	$1,434,431
7.	Rosser Knee & Brandon Saylor	1624 Eubank NE	$750,000
8.	Todd Strickland	5924  Anaheim NE	$878,856
10.	Cole Flanagan, CPA & Carlos Garcia	142 Palace Ave., Santa Fe	$2,100,000
11.	Ben Perich & Terrie Hertweck CCIM	SEC I-25 & Gibson	$6/SF 2.8 to 7.38 Ac.

With each day that passes, Winrock Town Center’s new massive steel structure for retail, visible from I-40 and from Louisiana Boulevard, grows a little taller and fills out more and more.

Winrock, which was once a vibrant indoor mall, is being reimagined as a power center, with some big brand names already signed on.

Storefronts are under construction at Winrock Town Center in Albuquerque.
Darin Sand, vice president of development with the project’s owner and developer Goodman Realty Group, said Tuesday that the project is progressing well.

Winrock’s 950-space parking garage constructed by Jaynes Corp., the project’s general contractor, is well underway. On top of the parking structure are the steel shells for Nordstrom Rack, which will be a corner store, DSW, facing south, and ULTA Beauty, facing west. All three should be open by the fall, Sand said.

Then there’s the refreshed and relocated Sports Authority, which opened during the summer of last year, with building finishes that represent what the entire development will look like.

Next door to Sports Authority will be three other storefronts — T.J. Maxx, David’s Bridal and Famous Footwear. Hart Construction is busy with tenant improvements for T.J. Maxx, which has its facade almost complete.

“We’re starting to see the shape of the center. You can see now how that south elevation will blend in with the Sports Authority and have a tower element,” Sand said.

There’s two more large tenant spaces next to ULTA Beauty and DSW, too, though Sand said leases with other retailers haven’t been signed. Pegasus Retail is exclusively listing the property.

A pad site just south of BJ’s Restaurant and Brewhouse is being built for Red Robin. Sand said Goodman Realty is just preparing the pad site, and Red Robin will build its own restaurant.

The interior of the existing mall still stands. A walkable “main street” will be constructed down the middle of the mall, with storefronts facing inward. Sand said some of the mall’s old structures will remain, while others will be demolished.