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Archives for May 2019

Surveys on Medical Pot Detail New Mexico Supply Shortages

May 15, 2019 by CARNM

State-commissioned surveys of New Mexico medical cannabis producers and patients show that many dispensaries are encountering difficulties in meeting demands for marijuana and related products.

The Department of Health commissioned the surveys as it considers changing its limits on medical marijuana cultivation and per-patient consumption.

In results obtained Tuesday, 55% of producers said they have been unable to keep pace with patient demand for marijuana and related products.

Patient enrollment is surging in New Mexico’s medical marijuana program for health ailments such as cancer, chronic pain and post-traumatic stress disorder, with a 39% jump in participation between March 2018 and March 2019. Active patients now number more than 72,000.

Of the patients surveyed, about one in four said they were unable to purchase cannabis within the past 90 days because it was out of stock. Shortages were more pronounced in eastern New Mexico, with about four in 10 patients citing shortages.

The surveys of all 34 licensed producers and more than 600 patients also delved into business ambitions, product preferences among patients, and overall satisfaction with New Mexico’s 12-year-old medical cannabis program.

Nearly all producers intend to expand in the future, while six in 10 patients say they purchase edibles — mainly chocolates, bars and gummy candies. The vast majority of patients were satisfied with the state program, while producers were more divided in their opinions.

The Health Department is crafting a new rule to determine limits on medical marijuana production after a lawsuit knocked down the previous 450-plant cap per producer.

A state district court judge ruled in November that the production limit had interfered with the beneficial use of marijuana by patients, siding with seller Ultra Health and the mother of child who is reliant on cannabis oil to treat a rare form of epilepsy.

Ultra Health, New Mexico’s largest seller, says medical cannabis sales are growing at a much slower rate than enrollment, which is up by 16% between March 2018 and March 2019.

The sales figures could not be independently confirmed.

The company says consumers appear to be turning to the illicit market or supplies from Colorado’s recreational market. Health Department spokesman David Morgan declined to comment on the assertion.

Most producers linked the problems in meeting demand to the state’s plant-count limit.

Ultra Health says the program is overly restrictive in several aspects and is urging the state to increase or eliminate its production cap, as well as raise per-patient purchasing limits and allow sales discounts by volume.

The Health Department has indicated it could address the current patient purchase limits — restricted to the equivalent of 230 grams (8 ounces) each 90 days — in its new proposed rule.

“We don’t believe a higher plant count is going to solve all of the program’s issues,” said Marissa Novel, a spokeswoman for the company in its Scottsdale, Arizona, headquarters.

The patient survey indicated about half of respondents would buy more medical cannabis if they could.

Costs also are a concern among marijuana patients, who cited lower prices at recreational marijuana dispensaries in neighboring Colorado.

By: ABQ Journal
Click here to view source article.

Filed Under: All News

May 2019 LIN Properties

May 15, 2019 by CARNM

At the May 2019 LIN Meeting held on May 15, 2019, 11 excellent properties were presented.
Thank you for presenting properties and attending the meeting!
Thank you to the Dave Hill CCIM and DJ Brigman who hosted 5700 Harper Dr. NE.
View May 2019 LIN properties here.
View May 2019 LIN Thank Yous here.

Filed Under: All News

Intel plans to add hundreds of jobs in Rio Rancho

May 14, 2019 by CARNM

Intel Rio Rancho is about to see a big boost in hiring.

The computer chip manufacturing giant plans to add over 300 jobs this year in Rio Rancho to support the company’s move into data-rich markets, a news release from the New Mexico Economic Development Department says. The new positions are expected to be a mix of local hires and relocations.

“The Rio Rancho site continues to be an important part of Intel’s global manufacturing network, and is manufacturing semiconductor products that are critical to Intel’s ability to secure, power and connect billions of devices and the infrastructure of the smart, connected world,” said Intel Rio Rancho Site Manager Katie Prouty in a prepared statement.

The development comes weeks after Intel posted a hiring increase in its annual report to Sandoval County, adding 168 workers last year.

In September 2018, the Santa Clara, California-based company announced its 3D XPoint technology development would come to the City of Vision, bringing over 100 jobs.

Intel employs “approximately 1,200” in Rio Rancho and worked with 1,100 contractors in 2018, according to its annual report. On the previous year’s filing with Sandoval County, it reported “more than 1,100” total employees.

The hiring announcement signals a continued shift from years of workforce decreases at Intel Rio Rancho. The workforce at the Rio Rancho plant shrunk by around 700 in 2016, or 37 percent, according to its annual report from that year, and its workforce held steady the next year. The facility employed as many as 3,200 in 2013, according to our reporting.

The average annual compensation for Intel’s New Mexico employees at the end of 2018 was over $145,000, including salary, benefits and bonuses.

Intel spokeswoman Linda Qian was unavailable for immediate comment Tuesday.

Intel is the largest manufacturer in the state, according to Albuquerque Business First’s Manufacturing Companies List.

By: Collin Krabbe (Albuquerque Business Journal)
Click here to view source article.

Filed Under: All News

Investors Go After Industrial Assets in Secondary Markets

May 10, 2019 by CARNM

Strong population growth and lower prices are luring industrial investors to secondary cities.
Strong economic and population growth in secondary markets is leading to increased investment in industrial real estate in those areas, according to industry experts.
While institutional investors are targetingsecondary markets for office acquisitions, investments in industrial properties in those markets are increasing at the same time. In 2018, overall U.S. industrial sales volume totaled $54.9 billion, up 8.9 percent year-over-year, according to an Avison Young spring 2019 Global Industrial Market Report. Total sales volume in secondary markets was close to $3.9 billion as of March 2019, a slight drop from $4.1 billion in March 2018. Industrial sales volume is not expected to surpass the high of September 2018, as most transactions during that time were from large platform and company deals.

Prices on industrial assets continued to rise, by 15 percent year-over-year to an average of $116 per sq. ft. As a result, many investors are starting to look at lower-cost secondary markets, according to Avison Young—with rising investment volumes in Greenville, S.C., Charleston, S.C., Memphis, Tenn. and Savannah, Ga. Incidentally, many of those markets saw vacancy declines in the first quarter—Charleston, for example, saw industrial vacancy drop by 140 basis points to 7.1 percent.

Though the industrial sector has shown growth since 2012 and has been dubbed by many industry experts as “red hot,” rent growth in all industrial markets has slowed in recent years, but particularly so in secondary markets. Average rent growth at industrial properties in secondary markets fell from 5.1 percent last March to 4.7 percent in March 2019. Still, asking rents across all industrial market tiers are at their highest point in over a decade, according to data from research firm the CoStar Group.

However, oversupply in the industrial sector is not a concern, according to Erik Foster, principal of Avison Young and the practice leader of the firm’s national industrial capital markets group, because high levels of equity are needed nowadays to develop new properties, a change from the way things were pre-recession. For this reason, Foster says industrial property fundamentals, such as rental rates and vacancy levels, should be kept in check. Increasing construction costs and a more controlled lending environment are also hindering the amount of new industrial construction starts. In the first quarter, vacancy declined or remained flat in 29 of the 46 markets tracked by Avison Young.
Meanwhile, net absorption in secondary industrial markets is at its highest level since late 2016. These markets also have the most new completions and industrial projects under construction as a percentage of existing stock, according to CoStar data.
“Given that the world seems to want everything in 10 minutes, I think you’re going to see [industrial construction] continue,” says Billy Procida, president of Procida Funding & Advisors, a real estate agency.
With this high construction level and the new industrial space only being partially pre-leased, vacancy is forecasted to increase slightly in the coming months, according to Avison Young research.
Nevertheless, due to increased investment activity in secondary markets, cap rates are set to compress, says Foster. In the first quarter, average cap rates on industrial properties across the U.S. stood at 6.6 percent, reports Avison Young. As of March 2019, cap rates across all market tiers were at their lowest in over a decade, according to CoStar data.
By: Sebastian Obando (NREI)
Click here to view source article.

Filed Under: All News

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