When considering it’s the right time to invest in commercial
real estate in Albuquerque or anywhere within New Mexico and the surrounding
states, it is always wise to do your research and consider what local and
national experts are saying about the state of the current market as well as
perceptions on the near term.
A November
2011 article by Paul Weideman in the Santa Fe New Mexican, entitled,
“Commercial Market: Not All Bad News,” provides some interesting insights into
what has been happening in our local Santa Fe, Albuquerque, and New Mexico area
in recent months.
Here are some of the main commercial property market events
of the past year:
- Santa Fe commercial real estate has been quiet with just a few major new commercial projects like the Walmart Supercenter and some restaurants. Hotel projects are also in the works.
- Signs point to future major retailers breaking ground in Santa Fe along with transactions that are projected to be over 10,000 square feet and some promising mixed use projects (office and commercial space along with loft properties), offering positive proof that the commercial market might be turning around in New Mexico as well as throughout the U.S.
- Economic hardships have adversely impacted the commercial market. The article cited the demise of Borders Books, which illustrates the impact that these kinds of problems can have in terms of a ripple effect on other industries like commercial real estate.
- Other positive signs are the appearance of many small, independently owned businesses opening up and seeking commercial leases in many of the now vacated commercial properties. Also encouraging are new schools being built in the area, illustrating the growth and expansion in the community that calls for such projects.
Low Interest Rates
To stimulate growth in commercial real estate, interest
rates are even lower. As one of the commercial property spokespeople in the
article noted, “One thing that’s hugely better than last year is interest
rates….If someone told me we’d have 5 or 6 percent interest rates on commercial
real estate 20 years ago, I’d have said they were crazy, but that’s what we
have.”
Forecasts
for 2012 by research firm Avison Young were recently released for the U.S.
and Canadian commercial real estate markets. The estimations are that “overall
U.S. real estate conditions are expected to mirror 2011 and demonstrate only
modest improvement going into the election….Development should remain scarce in
most markets and in all property types except apartments. Real estate, however,
remains an attractive investment and, after a slow start, the U.S. will
experience increased sales volume in 2012.”
For all types of commercial
loans as well as for construction loans, Indigo Mortgage can help you by
providing expert advice and a large array of lending solutions that fit your
financial need. Let’s get started while the market is ripe with opportunity in
Albuquerque commercial real estate.
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