mcarristo

It would be nice if Downtown residents – or for that matter all city residents – could have a nice grocery within walking distance of their homes or workplaces.
But for most Albuquerqueans that’s not the reality.
Bernalillo County and the city are considering pumping in incentives to bring a 12,000-square-foot grocery to city-owned land at Second and Silver SW. The Trader Joe’s-size store would occupy the ground floor of a four-story building that would also house 61 apartment units and other retail space. Mayor Richard Berry says it could be a “catalyst” for Downtown. And it could be a great amenity for the city’s urban center that slowly is being revitalized. The Berry administration is working on a development agreement with Geltmore LLC, which won a request for proposals for the project.
The County Commission recently approved an “inducement resolution,” a step that allows negotiations to move forward on an industrial revenue bond deal that includes a $900,000 tax break for Geltmore. Final approval of the bond deal is expected in August.
Paul Silverman of Geltmore calls the bonds “an important part of our financial structure.”
However, Commissioner Wayne Johnson raises a reasonable question. Is it fair for the county (or city) to help create competition for other nearby businesses that didn’t get a subsidy? Should the county give one store project a nearly $1 million boost while a competitor goes empty handed?
Project backers say the other full-size grocery in the Downtown area, the recently remodeled Lowe’s Market at Lomas and 11th NW, is too far to walk to from some points. Since the two sites are just over a mile apart, it could be said that walking distance is in the eye of the beholder.
While this looks like a good commercial project for the area with a built-in consumer base just upstairs, the city and county need to be sure it’s a fair deal with a clear picture of the benefits it would generate for a Downtown that sadly is heavy on office space and bars.
By Albuquerque Journal Editorial Board (Albuquerque Journal)
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The budget deficit is falling rapidly and is now projected to be $642 billion, or 4% of GDP, in FY 2013. It was projected to be $200 billion higher just three months ago. This improvement will delay the next debt ceiling brawl from June to November. And with election season already starting by then, expect substantially reduced political rancor. Despite the improvement, revenues will cover just 81% of federal outlays.
Elliot F. Eisenberg, Ph.D.
www.econ70.com

WASHINGTON (May 28, 2013) – With vacancy rates modestly falling and rents moderately rising in commercial real estate sectors, market fundamentals have improved, but financing remains a challenge for small business, according to the National Association of Realtors^® quarterly commercial real estate forecast.
Lawrence Yun, NAR chief economist, said the market is showing an uneven recovery.  “The wheels appear to be greased for the big players, but not so much for small business,” he said.  “Overall, the commercial sectors are firming nicely, with multifamily continuing to show the best performance.”
National vacancy rates over the coming year are expected to decline 0.1 percentage point in the office market, 0.5 point in industrial, and 0.3 point for retail; however, the average multifamily vacancy rate is forecast to rise 0.2 percentage point, with that sector still showing the tightest availability and biggest rent increases.
A companion report, the Commercial Real Estate 2013 Lending Survey,¹ shows widely varying availability of lending capital depending on property size, with a significant disadvantage for buyers of smaller properties.
Commercial sales volume of major properties valued at $2.5 million and above increased 24 percent in 2012 to $294 billion.  The uptrend continued during the first quarter of 2013, with a $72.8 billion volume that is 35 percent above the first quarter of 2012.  Sixteen markets in the first quarter experienced triple digit gains.
Commercial mortgage-backed securities regained market share in 2012, accounting for 22 percent of lending for major commercial properties.  A comparable source was government agencies, followed by national banks, insurance companies and regional banks.
Realtor^® commercial members report 85 percent of their clients’ transactions are for purchases under $2 million – generally small businesses.  These transactions are financed largely by private investors, along with local and regional banks, marking a bifurcation in capital availability based on property value.
“Despite the improvement for major commercial properties, 52 percent of Realtors^® report they had a commercial transaction fail in the past year due to a lack of financing,” Yun said.  “In addition, 42 percent of respondents said clients failed to complete a refinancing.  Credit for small business remains unnecessarily tight.”
Commercial members report that new and proposed U.S. legislative and regulatory initiatives, and regulatory uncertainty for financial institutions, account for the lack of capital in commercial lending for smaller properties.
NAR’s latest Commercial Real Estate Outlook² offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets.  Historic data for metro areas were provided by REIS, Inc.,³ a source of commercial real estate performance information.
News release.