Archives for June 2018

The metro area is on a roll.
Unemployment in the Albuquerque metro area has dropped to 4.2 percent, the number of jobs is growing to nearly the pre-recession peak and the city’s gross-receipts tax collections are returning to health.
“The unemployment rate is a good indicator that our economy is slowly gaining momentum, and the people of Albuquerque are better able to find jobs and support their families,” said city Chief Financial Officer Sanjay Bhakta. “Coupled with our growth in GRT, this is good news for Albuquerque’s economy.”
Unemployment in the metro area dropped from 5.7 percent a year ago to 4.2 percent in May, according to the state Department of Workforce Solutions. The last time it was that low was in June 2008.
The most recent preliminary figures also show that the Albuquerque area saw 7,300 more jobs, or 1.9 percent growth, compared to a year ago. That translates to a total of 397,000 jobs, less than 1 percent below the peak of 400,200 jobs in the metro area, which includes Bernalillo, Torrance, Valencia and Sandoval counties.
Further brightening the economic picture was a 4.4 percent increase in Albuquerque’s gross receipts tax revenue from business activity during the first quarter of the year, to $94.9 million.
The construction industry has been a big driver of job growth in recent months, although the biggest jump in May over the past year came among professional and business services jobs, which grew by 6.3 percent, according to the state figures. That sector includes a wide range of employers, from architectural services and national lab jobs to call center positions.
Mark Flaherty, an economist with the state’s Bureau of Economic Research and Analysis, said he could not pinpoint specific employers who contributed to the boost but said it appeared to be “relatively widespread across the sector.”
The state figures also contained good news for other New Mexico metro areas: Santa Fe’s unemployment rate was down to 3.8 percent compared to 5.2 percent a year ago and Las Cruces’ fell from 6.9 percent to 5.1 percent. Farmington, which was badly hit by the oil-gas industry downturn, saw a May unemplyoment rate of 4.9 percent, compared to 7.1 percent a year ago.
New Mexico’s unemployment rate fell to 5.1 percent last month. After a long slump, the state as a whole is seeing a “rare period” where the cities and the rural areas both are doing well, said Jeff Mitchell, director of the University of New Mexico’s Bureau of Business & Economic Research.
Mitchell, who cautioned that job growth numbers can “change dramatically” once they are adjusted, said the last time that happened in the post-recession period was in early 2014. That was just before the oil slump devastated New Mexico’s oil patch.
“It’s rare for recent periods that this is happening, and the result of this is overall strong growth for the state,” Mitchell said.
The slow and steady growth of jobs in the Albuquerque area is largely due to the construction industry which “has been gaining strength,” he said.
The Facebook data center in Los Lunas has “floated the boat for the last 18 months” when it comes to construction growth, but the real key to recovery in Albuquerque will be the return of residential construction, Mitchell said.
While the number of building permits for single-family homes continues to rise in the metro area, the number remains at about half the pace of activity seen in previous years, according to DataTraq.
New home building ripples across the economy and shows that “builders feel more confident in the longer-term outlook.”
“That’s what a lot of people are waiting for,” Mitchell said. “If residential building joins the party, then you have something truly meaningful.”
By: Ellen Marks (ABQ Journal)
Click here to view source article.

Nearly one-fifth of Realtors® practicing in commercial real estate closed a sale with an international client in 2017, and 35 percent said they have experienced an increase in the number of international clients in the past five years, according to a report from the National Association of Realtors®.
NAR’s 2018 Commercial Real Estate International Business Trends report analyzed cross-border commercial real estate transactions made by Realtors® during 2017. The study found that most Realtors® who specialize in commercial real estate reside in smaller commercial markets where the typical deal is less than $2.5 million.
“The profile of smaller commercial markets is continuing to rise as many foreign investors are attracted to smaller-sized properties in secondary and tertiary markets, bringing Realtors® confidence that increased sales and leasing activity will continue to occur in 2018,” said Lawrence Yun, NAR chief economist.
“Since 2016, world economies have regained their footing and have pressed toward higher ground. Global economic output increased in 2017, and commercial real estate continues to be a healthy investment for global investors,” Yun added.
Of the 59 percent of Realtors® who indicated they completed a commercial real estate transaction last year (69 percent in 2016), 18 percent reported closing a deal for an international client (20 percent in 2016). Among survey respondents who closed an international transaction, 46 percent closed a buyer-side transaction, 13 percent a seller-side transaction and the remainder closed both types of transactions.
Over 60 percent of buyer-side sales were transactions with foreign buyers who primarily reside abroad. Most seller-side transactions (57 percent) were of properties sold by clients who were temporarily residing in the U.S. on non-immigrant visas.
Nineteen percent of Realtors® said they completed a lease agreement on behalf of a foreign client, down from 22 percent in 2016. The median gross lease value for international lease transactions was $200,000 ($105,000 in 2016) with most space typically under 2,500 square feet.
The top countries of origin for buyers were China (20 percent), Mexico (11 percent), Canada (8 percent) and the United Kingdom (6 percent). While sellers were typically from Mexico (20 percent), China (15 percent), and Brazil and Israel (both at 10 percent).
Florida and Texas were the top two states where foreigners purchased and sold commercial property last year, with California being the third most popular buyer and seller destination.
International commercial buyer and seller transactions typically tend to be at the higher end of the market. Last year, the median international buyer-side transaction was $975,000 and a median seller-side transaction was $1 million, while the median commercial transaction was $625,000.
“Realtors®’ international clients found U.S. commercial real estate markets to be a good value in 2017. About seven in 10 respondents reported that international clients view U.S. prices to be about the same or less expensive than prices in their home country,” Yun stated.
The survey also found that foreign buyers of commercial property typically bring more cash to the table than those purchasing residential real estate. Seventy percent of international transactions were closed with cash, while NAR’s 2017 residential survey found that half of buyers paid in cash.
For those not using all cash, 25 percent of commercial deals involved debt financing from U.S. sources. A majority of buyers purchased commercial space for rental property (39 percent) or for business investment purposes (34 percent).
NAR’s commercial community includes commercial members, real estate boards, committees, advisory boards and forums; and NAR commercial affiliate organizations – CCIM Institute, Institute of Real Estate Management, Realtors® Land Institute, Society of Industrial and Office Realtors®, and Counselors of Real Estate.
Approximately 80,000 NAR members specialize in commercial real estate brokerage and related services including property management, land counseling and appraisal. In addition, more than 200,000 members are involved in commercial transactions as a secondary business.
The National Association of Realtors® is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
By: Cole Henry (NAR)
Click here to view source article.

Today’s tenants and occupants expect more from their workplace. It’s not just about a desk and a chair anymore, and the evolution of what tenants need and want puts more pressure on building owners and facilities managers to provide and deliver amenities that will attract and retain top talent.

The employee experience is defined by three factors, according to Jeanne Wood, senior associate vice president at CallisonRTKL: culture (HR, benefits and what the building feels like as you walk in), technology and the built environment. “Bring those three things together and talk about them with tenants,” Wood said. “Ask employees and tenants what they’re looking for, and don’t stop at the tenant point person. Go deeper to find out trends and identify what’s happening.”
During the Tuesday General Session sponsored by BOMA Cornerstone Partner Yardi, a panel of industry experts discussed New Tenant Amenity Demands: Creating a Better Workplace Experience. The panel discussed what to expect from tenant amenities and demands.
Moderated by Jim Tainter, managing director of the Landlord Services Division at NAI Partners, in addition to Jeanne Wood, the panel included:

• Brian Harnetiaux, BOMA Fellow, senior vice president of Asset Management at McCarthy Cook
• Amanda Heismann Gray, CPM, general manager at Lillibridge Healthcare Services Inc.
• Sam Schaefer, managing director and global head of Property Management for Leasing & Corporate Outreach at Tishman Speyer

“We get so rooted in getting a deal done, getting a tenant in and having them happy,” Tainter added. “We might be missing opportunities if we’re not creating an amenities package.”

Exciting Ideas for Tenant Amenities

Not sure what to offer to attract new tenants? The panel offered a wealth of ideas, from food options to office space solutions. Could these ideas be a good fit for your building?

Rotating food vendors:

One of Wood’s clients has access to a large industrial kitchen. The client’s employees are used to easily accessible urban amenities with lots of food choices, but the building is in a suburban office park with slim pickings nearby.
“They decided to talk with restaurant owners in the area and see if they’d be willing to come in for one- to three-month spurts,” Wood said. “That way, you have a rotating restaurant there and you don’t get bored of the grilled cheese sandwich. They’re also experimenting with whether the food is prepared on-site or whether they do things ahead of time and people just pick it up. Get creative with what you have.”

Food trucks:

If you live in a location with mobile food vendors, consider inviting some of the food trucks to set up shop near your office. The vendors will love the guaranteed traffic and your employees will be excited about the constantly changing options.
“People love food truck Wednesdays where you have a different concept showing up every week,” Tainter said. “It adds a little more diversity and flavor.”
Harnetiaux manages a campus that has become a food truck destination. Three trucks with different cuisines visit every day. “We created plug-in stations. They turn their generators off and plug into the hard line so they’re quiet,” Harnetiaux explained. “We have seating areas surrounding them. Now we have people who drive to our campus every day to have lunch, which we never thought would happen.”

Need-based amenities:

For healthcare facilities like medical office buildings, covered drop-offs and valet services are crucial building features, Heismann Gray noted. That’s because people visiting the building often have mobility impairments or other issues that make it hard to get around.
“The shorter the distance we can have them walk, the more likely they are to be on time for their appointment and the happier the doctors are,” Heismann Gray added. “The other challenge with mobility is wayfinding. It’s amazing how many patients come in to see their doctor and have no idea what the name of the practice is. They just wander in and say, ‘I’m here because my stomach hurts. I don’t know who I’m seeing.’ That presents wayfinding challenges, especially with the rotating medical staff you often have now. Using digital wayfinding helps them, just like you’d find at a conference center.”

Accessible rooftops:

“We’re seeing a lot of rooftop gardens, event space, observation decks and fire pits in common areas. That’s something that came over from multifamily,” said Tainter. “These are things people are slowly starting to see as something that can differentiate their building from the norm or the expectation.”

Coworking spaces across portfolios:

Existing clients often look for short-term service space when they’re traveling, said Schaefer. “If they’re a client of ours in New York, we’d like them to be able to lease space from us on a short-term basis in London or Shanghai or Sao Paulo, Brazil. We try to put ourselves in the best position to meet near-term demands and not concede that business to a third party, but to offer it to our own clients directly.”
By: Janelle Penny (Buildings Smarter Facility Management)
Click here to view source article.

A U.S. Supreme Court ruling early Wednesday that struck down the practice of public sector labor unions collecting mandatory fees from non-union workers in work sites covered by collective bargaining agreements reverberated across New Mexico.

The ruling could affect thousands of non-union workers in the state who have been paying union fees, potentially weaken several prominent unions and embolden pro-business advocates who have pushed “right-to-work” laws in recent years.

Carter Bundy, the political and legislative director for the American Federation of State, County and Municipal Employees union, which has about 10,000 members in New Mexico, described the Supreme Court’s ruling as an “activist” decision that overturned more than 40 years of established law.

“This isn’t going to just hurt unions – it hurts everyone that makes less than $500,000 a year,” Bundy told the Journal. “But we will band together and we’ll fight back harder than ever.”

However, Burly Cain, the New Mexico state director of Americans for Prosperity, a nonprofit group linked to conservative billionaires Charles and David Koch, lauded the Supreme Court’s ruling, calling it a “win” for workers.

“Forcing public workers to fund political activity to keep a job and support their family is not just unfair but also a violation of the bedrock principles enshrined in the Constitution,” Cain said in a statement.

The Supreme Court’s 5-4 decision not only will free non-union members in nearly two dozen states from any financial ties to unions but also could encourage members to stop paying dues for services the court said Wednesday they can get for free, The Associated Press reported.

In New Mexico, of the roughly 769,000 state residents who were employed in 2017, about 63,000 of them – or 8.3 percent – were represented by labor unions, according to U.S. Bureau of Labor Statistics. Of that number, about 52,000 – or 6.7 percent – were union members. More than half of the state’s union members belong to public sector unions, Bundy said.

The national union membership rate was 10.7 percent.

New Mexico’s Democratic-controlled Legislature has in recent years has rejected bills seeking to change state law so that nonunion employees – in both the private and public sectors – would not have to pay union fees as a condition of employment.

Critics of such right-to-work laws have said all workers in unionized workplaces should be charged the fees because unions protect and negotiate wages for all employees. And they contend such laws would lead to lower wages for New Mexico workers and could exacerbate income inequality issues statewide. They also accused backers of “union busting,” a charge they denied.

Supporters say right-to-work laws help states attract large employers and their jobs, and they insist the current law is unconstitutional.

Though union membership cannot be required under federal law, union fees – until now – could be mandated under contracts in unionized workplaces.

The amount of such fees vary but are typically about 75 percent of union membership dues. The fees are usually deducted directly from workers’ paychecks, but cannot be used to cover the cost of any political purposes.

The New Mexico State Personnel Office was working quickly to comply with the Supreme Court ruling, a spokeswoman said Wednesday.

Meanwhile, Tamara Kay, an associate professor at the University of Notre Dame, said the Supreme Court’s ruling could hurt the Democratic Party, which traditionally is backed by labor unions.

But she also cautioned the decision could set a new legal precedent for groups such as homeowners associations, which also collect mandatory fees.

“There could be all kinds of unintended consequences as to how this is used as a weapon,” she said in a Wednesday interview.

While unsuccessful on a state level, proponents of right-to-work legislation have been able to get such ordinances passed in several New Mexico counties in recent years. At least four of New Mexico’s 33 counties have adopted such ordinances: Sandoval, Chaves, Lincoln and Otero.

The Supreme Court’s ruling will likely mean a drop in fee payments for local labor unions, but Bundy and other local union leaders said they don’t expect a significant drop in membership.

The Supreme Court decision is not expected to have an immediate impact on local teachers unions. Still, union leaders said they fundamentally disagree with Wednesday’s decision.

American Federation of Teachers-New Mexico President Stephanie Ly said in a statement that the union’s membership is “nearly 100 percent voluntary,” meaning the dues-paying members aren’t affected by the ruling that targets mandatory fees.

“The ruling is, however, yet another attack on bedrock principles of our country, namely the rights of workers to organize, advocate for fairer working conditions, and collectively use our voice to advocate for respect for our professions,” Ly said in a statement.

Albuquerque Teachers Federation President Ellen Bernstein took a similar stance, saying that the ruling wouldn’t affect her organization immediately, but that the decision was still harmful to all unions.

“It’s a sad day for all of us that believe in organized labor,” she said. “But I believe organized people and unions are going to fight back and rise up.”

U.S. Sen. Martin Heinrich, D-N.M., also issued a statement, calling the right to organize “fundamental” to American democracy. He added that New Mexicans would not be deterred by the judicial ruling benefiting special interests.

But others said the ruling could increase individual liberty and boost the state’s economy.

“This is a great day for worker freedom in New Mexico,” said Rio Grande Foundation President Paul Gessing, another supporter of right-to-work legislation. “For too long, working for local or state government in the Land of Enchantment has meant financially supporting a variety of union causes, including higher taxes, job-killing regulations, single-payer health care, and environmental extremism.”

And a spokeswoman for Gov. Susana Martinez said the Supreme Court ruling affirmed that “forced union dues violate workers’ rights.”

By: Dan Boyd (ABQ Journal)
Click here to view source article.