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mcarristo

Downtown Albuquerque Makeover

August 27, 2014 by mcarristo


Pedestrians cross Marquette near Civic Plaza. A city consultant recommends converting Marquette to a two-way street, which he says would slow traffic and make the street more friendly to pedestrians. (Roberto E. Rosales/Albuquerque Journal)
Copyright © 2014 Albuquerque Journal
Jeff Speck spent hours looking at traffic counts and walking around Downtown Albuquerque this year.
Civic Plaza is way too big, he says, and so are the traffic lanes on some streets – overbuilt for the volume of cars that actually travel on them.
Downtown could do without 19 of its traffic lights, he said, which can be replaced by all-way stop signs. The one-way streets of Marquette and Tijeras, meanwhile, should be converted to allow traffic in both directions.
And the city shouldn’t let the fear of attracting homeless people scare it away from creating “green” space Downtown.
These are just some of the ideas Speck – a Washington, D.C.-based planner and designer – has for making Downtown a more “walkable” and bicycle-friendly environment. He evaluated the city’s core under a $50,000 contract paid for through the discretionary fund set aside for City Councilor Isaac Benton’s district.
Speck, a former director of design at the National Endowment for the Arts, is still compiling his final report, but he delivered a two-hour talk earlier this summer to planners, neighborhood leaders and others. The full report is expected next month.
Downtown could use some “green” space and similar urban amenities, Speck said, despite concerns about attracting homeless people.
“Any nice place you make, homeless people will come, and the way to get around that is just to have them outnumbered by” other people out walking, Speck said. “… The reason homelessness seems like such a problem here is because you have so few non-homeless people walking.”
He also contends that many Downtown streets have a lane or two more than necessary, given their traffic volume. The lanes are often too wide, as well, encouraging higher speeds, he said.

Urban Lofts faces west along Broadway near Downtown Albuquerque. A planning consultant has said the city should use every incentive available to attract housing Downtown. (Albuquerque Journal File Photo)
Narrowing the lanes slightly and getting rid of the excess lanes would create more space for on-street parking and bicycle lanes – some of which can be “buffered,” a design in which parked cars are moved off the curb far enough to leave a path for cyclists. Under that system, parked cars serve as a buffer between the cyclists and moving cars.
Many of these changes can be carried out simply through re-striping, or “for the price of paint,” as Speck puts it. One recommendation he came back to over and over again – reduce the city’s standard 12-foot lanes to 10 feet, leaving more room for on-street parking or bike lanes and paths.
“This extra (lane) width does nothing except to encourage speeding,” he said. “It doesn’t improve the flow.”
Benton, whose district includes Downtown, said he likes that Speck’s recommendations don’t require tearing up curbs and doing expensive re-construction.
“Most of them are fairly simple and low-cost solutions,” Benton said. “… I’d be inclined to try to adopt some of these as a policy, not that we’re going to immediately do all of it this year – but over the long term, we adopt his recommendation as a policy for improving Downtown.”
Michael Riordan, Albuquerque’s director of municipal development, said the city will evaluate Speck’s recommendations carefully after the final report is issued. Some ideas, such as changing one-way streets to two-ways, could be challenging or expensive, he said. Others are easier to follow up on.
“We believe a lot of them have merit,” he said.
Other observations and recommendations from Speck:
Too many curbs are painted to prohibit on-street parallel parking. Pedestrians like having parked cars next to the sidewalk, he said, because they add a natural barrier between them and vehicle traffic.
Tijeras and Marquette can be converted to two-way streets. One-way roads encourage cars to jockey from lane to lane and pick up speed, he said.
“One-way streets feel much less safe to pedestrians because of that sheer momentum of all those cars in one direction,” Speck said.
Vehicle traffic is light enough along one section of Lomas – around the courthouses at Fourth Street – to reduce it from seven to five lanes. Adding on-street parking in the area would help protect people on the sidewalk.
Nineteen traffic signals aren’t warranted. Three- or four-way stop signs would save money, he said.
Civic Plaza is too big. It’s also isolated because the north and south edges are walled off from surrounding buildings. Speck recommends cutting it in half and offering some of the land to developers.
“No one uses it, for good reason,” he said of the current design. “… You might as well have had a subdivision gate around your plaza.”
Use every incentive available to attract housing Downtown. There are only 645 housing units on 313 acres Downtown, he said, a density more fit for “sprawl” subdivisions far from the city core.
“The more people you have living Downtown, the better your tax rolls are going to be,” Speck said. “… You’re just going to be much healthier financially.”
By: Dan McKay (Albuquerque Journal)
Click here to view source article.

Filed Under: All News

Improving Economy Slowly Brightens Outlook for Commercial Real Estate

August 26, 2014 by mcarristo

Click here to view video related to the article below.
WASHINGTON – The strong rebound in economic growth during the second quarter and ongoing job creation are gradually improving the outlook for all of the major commercial real estate sectors, according to the National Association of Realtors® quarterly commercial real estate forecast.
Lawrence Yun, NAR chief economist, says after many false starts, the economy finally appears to be turning a corner to firmer ground. “The job market has been the bright spot of the economy this year as employers are feeling more confident about their growth prospects and adding to their payrolls,” he said. “This gradual turnaround from being overly cautious to more optimistic should slightly boost the demand for leasing and purchase activity as well as new construction projects in the upcoming year.”
Yun adds, “The economy can handle the inevitable rise in interest rates as long as commercial rents steadily rise to generate investor returns.”
National office vacancy rates are forecast to remain unchanged over the coming year, mostly due to added inventory entering the market. Rising exports and a shrinking trade deficit should lead to a declining vacancy rate for industrial space (0.4 percent), while retail space is forecast to decline 0.2 percent behind favorable gains in personal income and consumer spending.
“New construction for multifamily housing has picked up in recent months and looks to be alleviating the short supply,” said Yun. “However, the demand for rental housing continues to show strength. As a result, rent growth will outpace broad consumer inflation in upcoming years.”
NAR’s latest Commercial Real Estate Outlook1 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., a source of commercial real estate performance information.
Office Markets
Office vacancy rates are forecast to remain unchanged at 15.7 percent through the third quarter of 2015. Currently, the markets with the lowest office vacancy rates in the third quarter are Washington, D.C., at 9.3 percent; New York City, 9.6 percent; Little Rock, Ark., 11.5 percent; San Francisco, 12.4 percent; and New Orleans, at 12.7 percent. Office rents are projected to increase 2.6 percent in 2014 and 3.2 percent next year. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is likely to total 36.2 million square feet this year and 50.7 million in 2015.
Industrial Markets
Industrial vacancy rates are expected to fall from 8.9 percent in the third quarter to 8.5 percent in the third quarter of 2015. The areas with the lowest industrial vacancy rates currently are Orange County, Calif., with a vacancy rate of 3.5 percent; Los Angeles, 3.8 percent; Seattle, 5.9 percent; Miami, 6.1; and Palm Beach, Fla., at 6.6 percent. Annual industrial rents should rise 2.4 percent this year and 2.8 percent in 2015. Net absorption of industrial space nationally is seen at 107.6 million square feet in 2014 and 104.9 million next year.
Retail Markets
Vacancy rates in the retail market are expected to decline from 9.8 percent currently to 9.6 percent in the third quarter of 2015. Currently, the markets with the lowest retail vacancy rates include San Francisco, at 3.5 percent; Fairfield County, Conn., 3.9 percent; San Jose, Calif., 4.6 percent; Long Island, N.Y., 5.2 percent; and Orange County, Calif., at 5.3 percent. Average retail rents are forecast to rise 2.0 percent in 2014 and 2.4 percent next year. Net absorption of retail space is likely to total 11.2 million square feet this year and 19.3 million in 2015.
Multifamily Markets
The apartment rental market – multifamily housing – should see vacancy rates slightly decline from 4.1 percent currently to 4.0 percent in the third quarter of 2015. Vacancy rates below 5 percent are generally considered a landlord’s market, with demand justifying higher rent. Areas with the lowest multifamily vacancy rates currently are Orange County, Calif., Providence, R.I., and Sacramento, Calif., at 2.2 percent; and two Connecticut cities (New Haven and Hartford) at 2.5 percent. Average apartment rents are projected to rise 4.0 this year and in 2015. Multifamily net absorption is expected to total 223,400 units in 2014 and 171,000 next year.
The Commercial Real Estate Outlook is published by the NAR Research Division. NAR’s Commercial Division, formed in 1990, provides targeted products and services to meet the needs of the commercial market and constituency within NAR. The NAR commercial community includes commercial members; commercial real estate boards; commercial committees, subcommittees and forums; and the 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 70,000 NAR and institute affiliate members specialize in commercial brokerage and related services, and an additional 283,000 members offer commercial real estate services as a secondary business.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
By: Adam DeSanctis (National Association of REALTORS®)
Click here to view source article.

Filed Under: All News

Five Legal Do's and Dont's For Your Office Rental

August 25, 2014 by mcarristo

The right space for your business can make or break your success. It’s not easy to balance pragmatism with your pocketbook and picking the perfect pad, but it’s crucial to make the right choice for your business.
Keep in mind that small businesses should allow at least six to eight months for the search process, and don’t forget to consult your attorney and commercial real estate broker before selecting your new space.
Here’s a checklist of six considerations to review before embarking upon the hunt for a new space.
1. Location
Do your research. Talk to other potential co-tenants, local business owners, and the small business community to help narrow down your decision.
When selecting a location for your business, things to consider are: Will this attract customers and employees? Does the location make sense — is it convenient, in a good neighborhood, and is competition nearby? Does it make financial sense?
A business owner must also determine if it makes sense to sign a lease by asking questions such as:
Are there any tax incentives in the state, town, or city you are considering? Check what programs your state government and local community offer to small businesses.
Due to zoning laws, will your business be prohibited from performing any activities in the area that are important to your success?
2. Mind your budget
It’s critical to understand what your base rent includes when reviewing and negotiating a commercial lease with a property manager. Determine who is responsible for maintenance and repair fees, utilities, taxes, and insurance. A “gross lease” includes those costs in the rent and a “net lease” leaves the tenant responsible for the expenses.
Also, be sure to determine whether your lease includes an annual rent hike. If so, consider requesting a flat lease with no built-in increase or negotiating for a grace period before an annual rent hike kicks in. Many underestimate the cost of rent cutting into profit margins, so make sure you can afford it.
3. Be ready for commitment
Consider the terms of your lease. Commercial leases typically run from five to 20 years, so tailor your lease to the needs of your company.
Short-term leases are a safer bet for a new business as they provide flexibility and allow you to switch properties if you find a better location. On the other hand, a landlord may provide concessions in long-term leases, such as lower rent or waived utilities fees, that would not be provided in a short-term lease.
4. The extras
Look for leases that contain subleasing and exclusivity or co-tenancy clauses.
If possible, negotiate the right to sublease your space to another tenant. Subleasing allows you to lease part or all of the property during a portion of the unexpired balance of the term of occupancy. If you must move locations earlier than expected, a sublease will give you the ability to operate within your landlord-tenant agreement without breaching the contract.
Exclusivity clauses prevent the landlord from leasing nearby spaces to one of your direct competitors and co-tenancy clauses provide a reduction in rent if a key tenant, or large number of tenants, leaves the development. For example, Macy’s is considered a key tenant. Customers who shop at Macy’s tend to shop at surrounding stores as well, such as your small business. If Macy’s leaves, it’s reasonable to assume that you might lose business. A co-tenancy clause serves to make up for the loss in revenue in this instance.
5. Room to grow
The last thing to look for in a new business location is room to grow. Can you expand within or renovate the existing space? Are other floors available for lease in the same building? Don’t limit your evaluation to this single property. Make sure there are different-sized, affordable spaces available nearby in case you want to expand or downsize but remain in the area.
By: Lisa Honey (Albuquerque Business First)
Click here to view source article.

Filed Under: All News

Trend to Urbanization According to Maria Sicola

August 18, 2014 by mcarristo


Trend to Urbanization According to Maria Sicola, Head of Research, Americas, Cushman and Wakefield
Maria discusses, among other things:

  • How the central business districts, (“CBD’s”) are seeing strong activity and weakening in the suburbs;
    • Leasing is up in the CBD’s as well as absorption;
    • “This urban phenomena is now beginning to take shape”;
    • CBD’s is where the workers are telling their companies, this is where they want to be. The workers are forcing the shift;
    • Demographics, in general, are effecting a lot of the trends towards urbanization;
    • This looks like a sustainable trend
  • We are now seeing a growth in individual income, which we haven’t seen over the last few years
  • It’s quality of life that the millennials are seeking as part of the trend to urbanization, not necessarily transportation cost savings.
  • How is transportation effecting the CBD’s even though not every city has great transportation
    • Transportation will be critical to urban growth
  • Technology and energy is driving the recovery;
    • The recovery is beginning to expand more broadly beyond tech and energy and now includes a mix professional services, including:
      • Media
      • Advertising
      • Information
    • We are beginning to move away from a service oriented economy and more to a technology driven economy
  • How is the home worker going to effect office consumption
  • Trends in the design of office space
    • Open & collaborative
  • Move toward efficiency of space
    • Technology is decreasing space requirements, per employee
    • Mobility is there where it wasn’t a few years ago.
  • We are in the midst of a full economic recovery.

By: Maria Sicola and Howard Kline (Commercial Real Estate Radio)
Click here to view source article.

Filed Under: All News

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