Often in my business clients ask me to explain the…
Make Your Own Luck: 10 Albuquerque 2023 Commercial Real Estate Myth Busters
“The harder you work, the luckier you get.” This couldn’t be more true in commercial real estate. As advisors, we have to make a lot of calls and reach out to a lot of people to finally get lucky enough to find that perfect client on either side of a deal. One of the benefits of entrusting a professional is having this taken care of on your behalf.
This month, I want to shed light and bust some common misconceptions about Albuquerque commercial real estate.
Will March be your lucky month? If you would like to learn more about how I can help you get lucky and find the perfect space, contact me today.
Myth: Interest rates will continue to rise causing buyers to sit on the sidelines.
Bust: We are finding because the economy is coming back and unemployment continues to decrease, buyers are still in the market looking for buildings to own.
Myth: It is harder than ever to get approved for a loan.
Bust: Bankers I am talking to tell me their loan approval process is easier now than it was before COVID.
Myth: Lease rates will come down.
Bust: No, as a matter of fact, due to flight to quality, and the cost of Tenant Improvements and the increase in operating expenses, lease rates are on the rise.
Myth: Landlords are desperate for Tenants.
Bust: Those Landlords who worked with their Tenants throughout COVID and those Landlords who have enhanced their common areas are experiencing very high Tenancy rates.
Myth: Sellers are desperate.
Bust: Most sellers are not desperate. In fact, many properties are still receiving multiple offers causing values to continue to increase.
Myth: Employees will win the work from home battle.
Bust: Although employees may have an opportunity to continue to work from home, most employers are requiring employees work from the office one to three days per week. Prior to the pandemic, employers were already allowing employees to work from home on a flex schedule.
Myth: Office Landlord defaults escalate.
Bust: Although this is true in larger metropolitan areas, we are not seeing Office Landlords default on their loans in Albuquerque.
Myth: Shopping Malls are drying up.
Bust: Although consumers are ordering more and more on line causing shopping malls to experience vacancy, shopping mall owners are getting creative and signing leases with manufacturing and educational related tenants. Additionally retail owners are utilizing a portion of the space they previously occupied for in-person shopping for next-day delivery operations.
Myth: Site Selectors skim over Albuquerque.
Bust: Albuquerque Regional Economic Alliance (AREA) reports, Albuquerque and New Mexico are being looked at more and more by Site Selectors naming our climate and lack of natural disasters the main reasons companies want to be located here.
Myth: Activity in the market is slow.
Bust: We are so grateful commercial real estate professionals are needed both when the market is hot and when the market cools. Thankfully, our market has not yet cooled.