Archives for May 2016

In a new report measuring states’ clean technology, New Mexico ranked high, just missing the top 10.

In Clean Edge’s new U.S Clean Tech Leadership Index, which ranked states on how much clean electricity they generate, New Mexico ranked 13th.

When it comes to utility-scale solar electricity generation, New Mexico was fourth in the nation. Among the nation, New Mexico ranked 16th in clean technology policy.

When it comes to utility-scale solar electricity generation, New Mexico was eight in the nation. Comparing clean technology policy, New Mexico was ranked 16th. New Mexico was fourth in the country in LEED building deployment.

“The transition to a clean energy economy over the past seven years is remarkable,” says Ron Pernick, managing editor of the Clean Edge research firm, in a press release.

To view the full report about clean technology, go to Clean Edge’s website.

In 2010, only one state generated 10 percent of its energy from renewable sources. Now, 14 states exceed 10 percent renewables that aren’t hydropower, according to Clean Edge.

Solar is an $86 million industry in New Mexico, according to Solar Energy Industries Association.

By: Christopher Ortiz (Albuquerque Business First)

Click here to view source article.

Commercial real estate continued on an upward trajectory in 2015, building on improving fundamentals and investment momentum.  In tandem with rising economic conditions, leasing strengthened during the year.  Growing net absorption led to declining vacancies and accelerating rent growth.  As employment gains are expected to continue into 2016, demand for commercial space is expected to advance.
The improving employment landscape in office-using industries drove demand for office space.  Almost half of office leasing activity during the year was made up of company expansions, a positive development. Even with 44.2 million square feet of new supply, office vacancy declined 40 basis points year-over-year, to the lowest level in eight years—14.7 percent by the fourth quarter. Rents for office properties rose 2.2 percent during the fourth quarter, to $31.26 per square foot, according to JLL.
Industrial properties found favorable conditions in 2015 due to international trade and solid gains in online retail sales.   National vacancies for industrial buildings dropped in the single digits during the year, leading to higher rents.
Net absorption of industrial space totaled 231.2 million square feet in 2015, based on data from JLL. With new supply clocking in at 177.3 million square feet, availability rates declined to 6.4 percent by the fourth quarter.  Industrial rents rose 5.6 percent over the year, to an average of $4.93 per square foot.
With consumers keeping spending on an upward trajectory, the retail sector recorded positive demand matched by restrained supply, leading to declining vacancies and moderately growing rents.
Retail net absorption totaled 88.3 million square feet in 2015, according to JLL. Constrained new supply in high-demand areas lowered vacancies to 5.7 percent by the last quarter of the year. Rents increased 2.1 percent during the year, to an average $15.84 per square foot.
Demand for multifamily properties continued on an upward path. Renter occupied housing units totaled 42.6 million units in the fourth quarter of 2015, a 300,000 unit advance from the fourth quarter of 2014, based on U.S. Census Bureau data. National vacancy rates averaged 7.0 percent for rental housing during the fourth quarter, unchanged from the same period in 2014. Median rents for rental units averaged $850 by the end of the year.
Underpinning these improving fundamentals, commercial asset cash flow is certainly on the rise. Based on the REALTORS^® Commercial Lending Trends 2016 report, net operating income (NOI) increased in 57 percent of markets. For 22 percent of REALTORS^®, NOI increased in the 1 – 4 percent range. For 21 percent of respondents, NOI rose between 5 – 9 percent, while for 14 percent of commercial practitioners, the increase in NOI occurred in the 10 – 15 percent range.

According to the 2016 data, the increase in NOI moderated from the accelerating trends of the past few years. The percentage of REALTORS^® who reported “No Change” in NOI rose from an average of 25 percent during 2012 – 2014 to 32 percent in 2015, and then declined to 29 percent this past year. The figure indicates a broadening in the patterns of CRE fundamentals recovery.
By: George Ratiu (Economists Outlook)
Click here to view source article.

Ted Jones, chief economist with Stewart Title, says he’s not a feel-good economist.

Jones travels around the country giving presentations on the national economy. He’s known for his southern accent, his sense of humor and peppering his speeches on the economy with phrases like, “let’s tell it like it is.”

Ted Jones, chief economist for Stewart Title.

Jones was in Rio Rancho on Thursday at Presbyterian Rust Medical Center with a look at New Mexico’s overall economy, which he presented at NAIOP-New Mexico’s Rio Rancho Roundtable Series.

Despite saying he’s not a feel-good economist, he started with positive indicators New Mexico is posting.

Must like the rest of the U.S., New Mexico’s hospitality and leisure sectors grew 4.21 percent in the past 12 months. He credits the rise in the hospitality and leisure sectors to low oil prices, which allows families to save on gas and have extra money in their pocket for vacations.

The economic impact of New Mexico’s tourism industry in 2014 was the largest in state history. The industry injected $6.1 billion into New Mexico’s economy and supported about 89,000 jobs in 2014.

“That’s phenomenal growth,” he said, adding it’s a number that bodes well for the economy. “No one spends money on leisure unless they’re feeling good about the economy.”

Albuquerque’s real estate is also doing well, Jones said. He pointed to improving home sales and said Albuquerque is primed as a hot investment market both in the residential and commercial sectors. He pointed out New Mexico’s real estate isn’t as expensive to buy, but the rate of return is about the same as other markets.

“More and more investors that used to buy in New York, Miami, Chicago and San Francisco are looking at places like Albuquerque,” Jones said. “(Investors) can buy a place in New York, or here in Albuquerque and get 50 percent more cash flow here. That’s why they’re coming here.”

He said there are several things pulling New Mexico’s economy down. First, he chided the state’s business tax climate. Second, he recognized how low oil prices have impacted the southeastern part of the state and Farmington.

Jones also was surprised by how many government jobs New Mexico relies on, about 23 percent of all jobs in the state. While the news doesn’t come as a surprise to anyone locally, Jones emphasized how the statistic is alarming, especially when other states such as Arizona and Colorado have more federal land.

“You’re funding a lot more government employees and I don’t know why,” he said. “You have the ability to shrink state government dramatically.”

Still, Jones said while New Mexico’s job growth isn’t great, it’s steady.

“This is a strong, sustainable recovery,” he said.

By: Stephanie Guzman (Albuquerque Business First)

Click here to view source article.

Thanks to all of the brokers, sponsors and guests who attended the May 2016 CCIM NM Deal Making Session and to those who shared the CCIM NM May Properties. About 11 million dollars of commercial real estate properties available for sale were presented from all over New Mexico. Click here to view source PDF.

	Name	Property	Price
1.	Keith Bandoni, CCIM, John Ransom, CCIM & Tim With, CCIM	549 Guadalupe	$3,850,000
2.	Tom Jenkins, CCIM, SIOR, Dan Newman, & Debbie Dupes, CCIM, CPM	1010 18th St.	$3,985,219
3.	Dave Hill, CCIM & Jim Wible, CCIM	407 7th St.	$330,000
4.	Dave Hill, CCIM & Steve Kraemer, CCIM	1600 University	$2,200,000
5.	Steve Kraemer, CCIM & Dave Hill, CCIM	5130 San Francisco	$830,465
6.	Shelly Branscom, CCIM & Nicosha Shedlbauer	8311 San Pedro	$549,712
7.	Keith Meyer, CCIM, SIOR & Jim Wible, CCIM	NWQ Unser SE & 5th , Rio Rancho
8.	Coralee Quintana & Consuelo Horne	1001 Old Coors SW	$140,000
9.	Coralee Quintana & Consuelo Horne	508 Old US HWY 85 (1500 W. US Route 66, Socorro)	$140,000
10.	Coralee Quintana & Consuelo Horne	2204 Menaul NE	$400,000