News that a constitutional amendment was to be considered this legislative session may appear dry to some, but the change could have big impacts on the commercial real estate industry.
Sen. Daniel A. Ivey-Soto, D-Bernalillo, introduced a resolution to allow counties to limit property taxes. It would pave the way for counties to create “enterprise zones,” which would authorize counties to pause property taxes for new developments.
Ivey-Soto said the tax breaks would be a catalyst for urban centers and blighted neighborhoods across the state.
“It would encourage new buildings and demolition of old buildings, and incentivize property owners to modernize existing commercial spaces in New Mexico,” he said.
If a constitutional amendment was approved by lawmakers, the resolution would go before voters during the next general election cycle. Lawmakers would the be required to pass a bill defining what an economic development zone would look like, and how it would function.
“We need a tax deferred district for Downtown to spur private investment. This would help the entire state by creating a place for millennials and baby boomers looking for a walkable lifestyle.” – Ray Smith, President of Klinger Constructors
“I think it would change our skyline. It would change our skyline. It would allow great sites Downtown to be built up with new Towers.” -Todd Clarke CCIM, New Mexico Apartment Advisors
“Between this and the development ordinance changes, developments would happen quicker, and it also means less money and time and effort put into the financial aspect.” -Joe Farr, Senior Vice President of Gemini Rosemont Realty
Office Market Update
Leasing Activity Overshadowed by Climbing Vacancy
Albuquerque’s office market posted some positive new for 2015. There was 790,000 square feet of leasing activity in 2015, which exceeded the five-year average of 664,000 square feet of leasing activity. At the same time, the market saw more companies vacate space, according to a report by CBRE. About 904,000 square feet of office space was vacated in 2015, which the report said was the second highest in recent market history. It’s something the real estate community has seen all year, as more offices consolidate and downsize, or what some in market refer to as “rightsizing,” as offices become more efficient in smaller spaces. CBRE things that activity will slow this year, and industry watchers wonder when Albuquerque will see new businesses occupy nearly the considerable amount of available office space in 2016.
Albuquerque Office Space
- Overall Vacancy Rate: 22.4%
- Highest Vacancy Rate: Airport submarket, 42.9%
- Lowest Vacancy Rate: Far Northeast Heights, 10.2%
- Highest Rents: North I-25, $19 per square foot
- Lowest Rents: Northeast Heights, $12.50 per square foot
By: Stephanie Guzman (Albuquerque Business First)
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