From Walt Arnold, CCIM, SIOR - Albuquerque, NM
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Bob Clark, News Radio 770 KKOB: Walt what do you have for us today?
Good morning Bob, I want to talk about the Leasing Information Network, a group of commercial real estate brokers that meets monthly to talk about leasing commercial space and LIN had its Roundtable session last Wednesday for the Albuquerque leasing market. In the office and industrial markets the size of the leasing deals over the fourth quarter of last year are slightly up in square footage, the number of transactions is also slightly up and the two most active submarkets continue to be the North I-25 area and the Uptown market.
Predictions for 2010 are that effective lease rates (which include concessions) will be down, new construction will be non-existent and vacancy rates will push slightly upward, increasing available lease spaces with Landlords concessions also up in order to attract tenants.
Bob: How about lease rates, was there any discussion on where lease rates are heading?
In the office sector Class A space, is going for $19/sf/yr to the low $20/sf/yr full service, Class B rates were around $16.50/sf/yr and class C was $12/sf/yr with some comments being whatever you can get!
Industrial rates were around $6/sf/yr for existing space and $6.50 to $8/sf/yr for new space. But there are some warehouse rates, especially in downtown that are in the $3 to $3.50/sf/yr range.
It is interesting that the most challenging component of completing the lease transaction and the solution to any challenges to leasing was one word. Expectations! Both landlords and tenants have different expectations, tenants’ expectations of lease rates and owners’ expectations of current pricing in the leasing market, both landlords and tenants need to become more realistic in their view of the market.
Both landlords and tenants are agreeable to shorter term leases although that is an opportunity for tenants to lock in longer term leases at lower occupancy costs.
Bob: Walt you also had some information job growth for Albuquerque.
Yes, thanks Bob, Forbes magazine had a little blurb about ABQ in a recent issue that Albuquerque is in the top ten markets for job growth over the next 3 years at #7 with a projected job growth of 3% or 1% per year. I hope that pans out.
And one another quick note, property owners, don’t forget to review your property tax assessments, the deadline to file a protest is approaching rapidly. Don’t miss that opportunity to lower your tax burden.
Bob: How can people contact you?
Call Walt Arnold at (505) 256-1255; check us out on the web at waltarnold.com. Bob, at Sperry Van Ness we help people make sound commercial real estate decisions in sales, leasing, property management, tenant representation and site selection. Give me a call to discuss any of your commercial real estate needs. Thanks Bob, have a great week.
If you have comments or questions about lease rates or the Leasing Information Network, or any of our services or listings, please contact me by leaving a comment below, or emailing me at walt@waltarnold.com. Give us your feedback.
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Tags: albuquerque, Class A, commercial, cre, economy, for lease, industrial, job growth, landlords, Leasing Information Network, new construction, office, tenants, vacancy, warehouse