Confessions of a Commercial Real Estate Consultant
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The NM Chapter of the Urban Land Institute released its 2013 Commercial Real Estate and Value survey last week at the joint Apartment Association of NM and Urban Land Institute Market forum luncheon.
Previous value and cap rate surveys performed by Cantera Consultants & Advisors Inc. can be found here for 2011 and here for 2010.
Read the full article from the ABQ Journal here
The complete 11 x 17 version of the survey can be found by clicking here.
Within 24 hours of each other these two stories became headlines:
Apple announces their update to the iPad – the iPad2 and as part of Steve Job’s keynote speech and presentation he indicates that 2010 was the year of the iPad, that its sales have outpaced anything they thought possible, AND, were due in large part to its retail stores.
The Wall Street Journal indicated today that most big box retailers are downsizing, subleasing or vacating their big box locations in pursuit of a better retail model.
The article goes on to indicate that it may have less to do with the size of the store than the quality of the experience and, in fact, the article mentions the “customer experience” of an Apple store.
From a CCIM market analysis standpoint, if retail big boxes truly downsize, we can anticpate a glut of retail to hit market in the next couple of years. If you haven’t taken CCIM 102, and would like to be able to calculate the impact of this spatial change in your market, the course provides the tools and processes to help you calculate what this will do to occupancy, rents and values.
Cantera Consultants & Advisors has just released the results from our latest valuation survey. This survey was performed over the summer of 2010 with real estate owners, investors, lenders, brokers and appraisers.
The attached document demonstrates the changes in CAP rates and values from 2005 to 2010.
Click here for the survey results and a related newspaper article CCA-Survey-07092010-v8plusJournalArticle
The animated short film, LogoRama, just won an Oscar!
Having watched it, I can tell you, it is a bit odd that we are so comfortable with the abundance of logos and retail.
Ever wonder why there are more and more Walgreen’s and less and less clothing stores?
It is a reflection of our shopping patterns as more and more of us choose to order online or from catalogues vs. visiting a physical a store – a long tend trend known as bricks/mortar to clicks/flips.
Long term, this indicates a higher demand for industrial/distribution properties, and declining demand for retail.
Thank you Lifehacker.com for the article.
Thanks to Anil Krishnamurthy for sending me my holiday read – Le Deal by J. Byrne Murphy.
Le Deal covers a well known American Developer who decided to expand into the European retail market. Le Deal gives great insight into the differences between development in Europe and America, and provides a handful of good laughs and great stores along the way – like this one from page 24:
Alan had his people run all the numbers and draw up the preliminary designs, and then trundled off to see the mayor of Hillsboro, to explain the concept, and to seek his support.
Alan told the mayor how the outlet would create four hundred new jobs, maybe six hundred if the center grew large enough. He estimated that there would be nearly five million dollars in property taxes flowing into his town’s coffers and four million shopping visits per year…
“ So Mr. Glen what do you want from me?” the Mayor asked at the end of the presentation.
“Well, Alan said, I want your support for the project, I’ll need zoning approval and a building permit to get started.”
The Mayor thought for a moment, then asked Alan, “May I see those drawings again?”
And when Alan unrolled the drawings, the mayor took out a pen and signed his name across the top of the first drawing, dated it, and said “Mr. Glen you just got your zoning approval and building permit – let’s get started.”
The whole interview, from beginning to end, had lasted less than an hour.
If you have an interest in how real estate in Europe differs from America, or in the back story on one of this country’s most successful outlet mall developers, I would highly recommended this book!
All referral proceeds from Amazon go to the CCIM Education Foundation.