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Meet Land & Industrial Senior Advisor Genieve Posen

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We have seen determination and grit win the day, and we have seen hard-work and perseverance overcome the obstacles. With great confidence, Genieve will accomplish anything she sets her mind to do.  Her willpower and fortitude has driven her advancement to Senior Advisor. Genieve is well on her way down the road of success and has just reached a milestone in her journey.  Please join me in congratulating Genieve on her advancement from Advisor to Senior Advisor.

What did you do before your career in Commercial Real Estate began?

I was the Marketing Director for NAI SunVista for 6 years before transitioning to brokerage. Before starting at NAI SunVista, I was a designer for a commercial landscape architecture and planning firm for 9 years. 

What made you take that leap and transition into commercial real estate?

Having designed commercial real estate sites for near a decade and marketing commercial sites for another good amount of time, it only made sense to grow my career with brokerage.  I had always been intrigued by the brokers in our office and could relate to their competitive, self-motivating and entrepreneurial personalities. 

What part of being a new broker did you find most challenging?

Well the “valley of death” first year in brokerage certainly held up to its reputation.  You are drinking from a fire hose at a rapid pace.  There are so many details and lessons in this industry that are learned when you are in the thick of a transaction.  In addition, developing systems is difficult to do when you first start because you do not know what systems you need and how they will benefit you in the run of your career. 

What advice would you give someone considering a career in CRE?

Find a mentor, hands down.  There is not a school for “brokerage” so you must learn from others experience as you gain your own experience.  I would suggest that a new broker research their brokerage house to see what type of education, support and mentorship is offered to them.  Surround yourself with experience as often as you can.  Ask questions, take experienced brokers out to coffee/ lunch to listen and learn – then repeat!

Who has influenced you the most in this role?

My mentor and partner, Jim Hakeem, has taken me under his wing from day one and has taught me an incredible amount in just my two years working with him.  He challenges me, supports me and encourages me constantly.  In addition, I give much credit to our QB and CEO, Debbie Harms, for her professional guidance throughout my various careers within the company.  To be very honest, I can add multiple senior brokers at our company to this list that have invested their time and mentorship to me.  I am very lucky to be surrounded by professionals that truly care. It is my mission to pay this mentorship forward. 

What would you say has been the highlight of your career to date?

Hitting this milestone of Senior Advisor within two years of starting my career all while I was pregnant and gave birth to my second little girl.  Growing a career and family is not easy, and I could not have done it without support from my husband, family, mentor and partners.  I take pride in my ability to balance a career and a family.  It is not easy but it is worth every effort. 

What trends are you noticing in the land/industrial markets that you’re either excited for?

The market for these two asset classes is still very active despite concerns of interest rates and a cooling economy.  Land with strong fundamentals and flexible zoning will continue to be attractive in a changing market.  As for industrial properties, the demand is there and shows no signs of slowing in the immediate future.  Low vacancy rates and e-commerce in full swing, the industrial sector is still going strong. 

Where can we find Genieve on the weekends?

Spending time with my family, working out, caring for our animals, traveling, and jumping at the opportunity to do anything that involves creativity and design around our home.

Land/Industrial – 2022 Q4 Market Review

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Lease rates are on the rise…will the vacancy rate follow?

Research and Analytics provided by Riley McKee

In recent years the vacancy rate for industrial real estate in Albuquerque has set a new record low just about every quarter. Once it fell below 1% in Q4 2021, it was only a matter of time before the trend would reverse. Figures for Q4 2022 indicate this reversal may be underway with the vacancy rate increasing to 1.27%.

This is not necessarily bad news, though. Long awaited new construction of space is nearing completion, growing the size of the market and giving tenants more and better options to choose from.

   – The sum total of existing space available for lease is now more than 500,000 square feet for the first time since September 2021. This can be viewed in two ways: perhaps the market is softening after several historically strong years; it also could be the result of a new equilibrium in the supply and demand curves as lease rates have aggressively pursued demand for space in recent quarters.

   – The median triple-net (NNN) asking lease rate is nearing $12 per square foot. A significant majority of vacant space now has a double-digit price tag.

   – Speculative buildings under construction that have been referenced in previous editions of this report are nearing completion. By the end of the second quarter of this year, several will be available to occupy. Consistent leasing activity at these projects should lead to more, with a backlog of 2,000,000+ square feet of proposed space currently being marketed but not yet under construction. Costs and interest rates continue to be a challenge but have thus far slowed, rather than stopped, projects moving forward.

   – New construction of smaller space with unit sizes ranging between 2,500 and 20,000 square feet remains a rarity. Only one such project—a 15,000 square foot office/warehouse in Rio Rancho is underway while a few others have been proposed.

What’s the outlook for 2023? For the most part, more of the same. Recent increases to the vacancy rate still pale in comparison to the overall lack of quality space available. If figures presented in today’s report were doubled, the total amount of vacant space in the market would just barely exceed 1,000,000 square feet, increasing the vacancy rate to 2.54%. Both numbers are comparable to market conditions in December 2020, hardly a weak time in the Albuquerque industrial real estate market.

Download: Q4 2022 Land & Industrial Quarterly Report

The Land and Industrial Q3 market research and data is compiled by NAI SunVista commercial real estate land and industrial specialist, Riley McKee. Riley advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.

Bank of Albuquerque lists mortgage center for $8.9M, plans relocation

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By  –  Real Estate Reporter, Albuquerque Business First

The Bank of Albuquerque Mortgage building has hit the market for $9 million.

The property, located at 3900 Vassar Drive NE, is owned by the bank, which decided to move its operations to another facility. The Vassar building was built in 1980 and was initially owned by Bank of Oklahoma Financial. 

Bank of Albuquerque settled on a property located at 6301 Jefferson St. NE, which was previously occupied by a Lowe’s store support center. The bank purchased the 63,345-square-foot building in mid-November. Hill declined to disclose the transaction amount. Renovations are planned for the space. A contractor and design firm, as well as a construction timeline, have not been determined.

Click here for the rest of the Albuquerque Business First story.

Meet Retail Senior Advisor Alex Pulliam

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We have all watched Alex strive and flourish with many goals in her life, one of which is succeeding in this new career she has chosen.  Being a commercial real estate broker is a career choice burdened with losses and setbacks, changes and revisions, and yet, success is still possible and probable for those who set their mind on accomplishing the task.  Alex is well on her way down the road of success and has just reached a milestone in her journey.  Please join me in congratulating Alex on her advancement from Advisor to Senior Advisor.

What did you do before your career in Commercial Real Estate began?

For nearly 10 years I worked for one of the largest Commercial General Contractors in the state. I started in college as a part-time assistant but quickly moved my way up into a Business Development/Marketing role. At 28, I was named a Shareholder where I added strategic planning and operations to my list of responsibilities.

What made you take that leap and transition into commercial real estate?

There is a fire inside of me that wants to have an impact on transforming my community for the better. I transitioned into commercial real estate brokerage to play a more active role in making projects come to life in Albuquerque. Through deal making, brokers contribute to getting deals across the finish line that create tangible results you can see in the forms of new buildings and businesses. 

What part of being a new broker did you find most challenging?

Lack of experience. As a young broker you quickly learn that those who are most skilled in brokerage are those who have handled (many) complicated deals and prevailed. Fortunately, NAI SunVista fosters a culture of open communication and young brokers have unique opportunities to learn from tenured brokers and owners who share experiences and solutions for navigating a variety of transactional items.   

What advice would you give someone considering a career in CRE?

Find the right mentor and show up to seize opportunities. Many people think being a broker affords you the opportunity to work when it’s convenient, but successful brokers are the ones who consistently show up. Lastly, get comfortable with being uncomfortable. This role will force you to face rejection and confront difficult conversations, and you’ll be a better communicator because of it.

Who has influenced you the most in this role?

In my brokerage career, I’ve been most influenced by my mentors and teammates- Keith Meyer, Jim Wible and Riley McKee. I truly hit the jackpot with this group of elite brokers who teach me (and anyone who asks) how to approach a deal with knowledge of the opportunity, a financial understanding, a solution-oriented attitude, and honesty.

What would you say has been the highlight of your career to date?

Being named President of CREW New Mexico in 2021 is one my greatest career highlights. It was a demanding year that challenged my desires to excel both as a new broker and be the best leader for CREW, and it was worth it.  This role gave me a lesson in leadership, effective communication, task management, and enhanced my interpersonal skills. Serving CREW, an organization that has been part of my life for nearly a decade, was an honor. It’s where my friends, mentors/sponsors and network can be found.

What trends are you noticing in the land/industrial markets that you’re either excited for?

The industrial boom, brought on by accelerated COVID trends, has positioned Albuquerque to need more inventory and expand our industrial footprint- and I’m really excited for what’s happening in our city. For the first time since I can remember, I’m seeing cranes in the sky, new housing come out of the ground, and a renewed interest in growing Albuquerque.  

Where can we find Alex on the weekends?

Outside enjoying New Mexico’s beautiful landscape. I love living in New Mexico because it allows me to do all the things that bring me joy like running, skiing, hiking, biking and just enjoying the outdoors with my dogs.

Land/Industrial – 2022 Q3 Market Review

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Despite economic headwinds, industrial real estate remains a top performing asset class in Albuquerque

Research and Analytics provided by Riley McKee

The vacancy rate continues to hover around 1% as the quantity of newly available space just barely keeps pace with (and regularly falls shy of) the quantity of space leased in any given month.

• In aggregate, the volume of existing space available for lease is roughly 370,000 square feet. This figure has maintained below 500,000 square feet since the end of September 2021 and well below 1,000,000 square feet going all the way back to December 2020.

• Landlords are now fully aware of the leverage they possess. The median triple-net (NNN) asking lease rate eclipsed $11.00 per square foot in August as double-digit lease rates—once exceptional—are now becoming a norm.

• New construction of industrial space continues to develop. At least five buildings are underway in multiple submarkets including the North I-25 Corridor, the West Mesa, and the South Valley. The average size of these projects remains tilted toward larger tenants, though, at just over 87,000 square feet. While costs continue to be a challenge, strong demand dynamics thus far have proved enough to keep things moving forward.

• Smaller scale tenants still do not have new construction options to consider. Industrial developers currently active in the market seem to have the larger scale space needs well covered at present; other developers that are interested in industrial projects should seriously consider buildings (freestanding or multi-tenant) that offer space in increments of 10,000 square feet or less.

• The Federal Reserve has increased interest rates by 0.75 percentage points on two occasions since this report was last published. Another increase is anticipated after September’s 8.2% year over year increase in prices for consumer goods. This could be both a challenge and a boon to the industrial real estate market. As borrowing becomes more expensive, would-be buyers of real estate may elect to be tenants instead. On the flipside, developers may find it increasingly difficult to underwrite projects if financing is required. In New Mexico, where construction is expensive relative to neighboring states, lease rates must remain at or above their current levels to justify building new space.

A persistently low supply of available space and increasing lease rates both point to continued strength in the industrial real estate market in Albuquerque, despite the specter of an upcoming recession.

Download: Q3 2022 Land & Industrial Quarterly Report

The Land and Industrial Q3 market research and data is compiled by NAI SunVista commercial real estate land and industrial specialist, Riley McKee. Riley advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.

Land Sales driven by Housing, E-Commerce, Manufacturing and Consumer-Focused Retail

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It’s no surprise that land has become increasingly attractive to investors, developers and owner/users, as real estate prices continue to rise, and existing buildings remain in limited supply. This is a pattern that is not only happening in the Albuquerque MSA but occurring in markets nationwide. 

Despite macroeconomic headwinds, (stock market fluctuations, interest rate increases, inflation, construction costs, and supply chain issues) momentum is still visible in land sales and ground leases.

Single Family Housing | Strong single family home sales activity over the past two years has resulted in a robust demand for residential land by housing developers. This is demonstrated by multiple planned residential communities currently going through permitting processes or under construction in the Rio Rancho area, Albuquerque’s West Side, Mesa del Sol and Los Lunas.  Recently, there seems to be a slight cooling in the housing market due to the aforementioned macroeconomic conditions. 

Seasoned home developers communicate that they are staying ahead of game and working on products and prototypes that can meet the financial needs and living expectations of the customers shopping the current market.  We are even seeing new single-family rental concepts enter the market: a telling sign that there is still demand for single-family products at a variety of price points.

Multifamily Housing | A lack of new construction of multifamily housing in the last decade coupled with rising home costs and interest rates, has resulted in a healthy need for new multifamily inventory.  Class A developments are not only being developed on expanding peripheral markets of Albuquerque, they are also finding their way to in-fill opportunities in established neighborhoods and key corridors. Based upon the economic factors occurring in the housing market the demand for multifamily land for development should continue to be resilient. 

Industrial | Driven by recent consumer shifts towards electronic/mail-order shopping, fast retail and convenient delivery, industrial land along key logistic corridors is more valuable than ever.  Evidence of this can be seen in recent industrial land sales and construction of distribution warehouses along both West I-40 and South I-25 corridors.   Demand is outpacing supply nationwide and the Albuquerque metro is reflecting an approximate 1% vacancy rate of available industrial properties (see NAI SunVista 2022 Q2 Industrial report).  Government tech and national security research/manufacturing, the film industry and cannabis cultivation are also contributing to today’s historic demand.  A lack of suitable industrial land continues to be a bottleneck for developers, as it relates to zoning and access to utilities/infrastructure and water resources. 

Retail | There is no denying the land wars for pad sites that are occurring in key growth corridors with high traffic counts and visibility.  As housing continues to expand on the periphery of the city, quick-serve restaurants, convenience stores, car washes, and coffee-drive-thrus among many other concepts are racing to get land under contract and out-position the competition.  Consumers have not only influenced the uptick in “convenient retail” but they also want a better experience when they do decide to skip convenience and dine out.  Experiential retail, which combines activity/entertainment with dining/drinking is hotter than ever. 

Land investment still comes down to the fundamentals of availability, access to infrastructure and resources, zoning and the ability to make it “pencil” for the buyer. 

Written by; Genieve Posen, NAI SunVista Advisor

For more information on land development opportunities, industrial/warehouse commercial real estate and retail properties, contact Genieve Posen.

Land/Industrial – 2022 Q2 Market Review

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Vacancy stabilizes as rents increase and new construction begins

Research and Analytics provided by Riley McKee

After ten plus years of downward trending vacancy rates, the market appears to have finally bottomed out. At just slightly over 1%, though, there was not much more room for it to fall.

• As of this writing, roughly 450,000 square feet of existing, vacant space is available—a number that could double (and perhaps even triple) before robust demand would soften. Asking triple net lease rates have surged in recent months, jumping from $8.79/SF at the end of last year to $10.59/SF today. Modified Gross lease rates have all but disappeared as a category. Less than ten vacant properties are currently being marketed with that lease structure with a median asking lease rate of $11.67/SF.

• The balance between market lease rates and labor/materials costs that is necessary to make new construction viable continues to be disrupted by a bottlenecked supply chain and a low unemployment rate. While several new buildings are underway—150,000 square feet on the West Mesa and 233,000 square feet in the South Valley—others proposed have yet to break ground. The construction cost environment likely factors heavily into those projects being delayed.

• New construction of smaller scale space (10,000 square feet and below) is near nonexistent. Only one project (a 9,415 single tenant warehouse in the North I-25 corridor) has recently been completed and only one other (a 10,000 square foot office/warehouse in the North Valley) is being planned. Developers should take note of this void in the market.

• Macroeconomic trends may prove to benefit the market for leased space. The Federal Reserve’s recent 75 basis point hike—and its planned hike of similar (or greater) scale in response to June’s 9.1% consumer price index year over year increase—will continue to make borrowing more expensive and may result in a growing share of the market electing to lease space rather than purchase it.

Despite negative economic indicators the industrial real estate market in Albuquerque remains strong. Lease rates increases are the result of a low supply of space that is not being sufficiently replenished by new construction. Should a recession occur later this year or in 2023, vacancy may increase but not in an amount that would significantly reduce demand. Industrial real estate remains a top performing investment.

Download: Q2 2022 Land & Industrial Quarterly Report

The Land and Industrial Q4 market research and data is compiled by NAI SunVista commercial real estate land and industrial specialist, Riley McKee. Riley advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.

Top Social Media Influencers

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NAI SunVista is proud to announce that Advisor, Genieve Posen has received the honor of being recognized as an top social media influencer by CREi, an organization that is dedicated to the social networking of commercial real estate.  She ranked #32 out of the Top 150 List for LinkedIn Commercial Real Estate Influencers (CREi) for 2022.  The criteria for this ranking is determined by the following:

  • Profile Views in the last 90 days
  • Number of Connections
  • Total LinkedIn Social Selling Index
  • Top 3 posts – Likes and comments

 

When asked about her ranking on the list, she stated:  

“I am honored to share my presence among the top influencers and social media icons of our industry.  A huge congratulations to all of the 150 CREi winners, many of whom I have been a fan and follower of for years. To be ranked #32 amongst them is humbling.  Social media is not for everyone, but for me, it is a platform for storytelling and knowledge sharing. It is not always easy or comfortable and it certainly takes time. However, the rewards to educate others about the field of commercial real estate, and talk openly about the wins, losses, and everything in between are many. Please check out the full list of winners here and be inspired (as I have). ”

Genieve Posen brings 16 years of experience of landscape architecture, urban development and commercial real estate marketing to her role of Advisor at NAI SunVista. Before transitioning to brokerage, Genieve was the company’s Marketing Director for six years. She has a passion for story-telling, problem solving and connecting the right people to the right location.  She utilizes social media as an outlet for market updates, client celebrations, economic development highlights, property opportunities and business insights. 

Learn more about Genieve and her properties here.

Follow Genieve on LinkedIn here. 

Other social media handles to tune into Genieve’s insights: 

Instagram:  genieveposen_cre
Twitter:  @GenievePosenCRE
Facebook:  Genieve Posen – Commercial Real Estate

Land/Industrial – Q1 2022 Market Review

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Vacancy rates level off as new construction gathers momentum

Research and Analytics provided by Riley McKee

For the first time in over a decade, speculative new construction of industrial real estate is underway in Albuquerque. Roughly 230,000 square feet of distribution warehouse space in the West I-40 and South I-25 Corridor submarkets is projected to be finished before the year’s end with another 360,000 square feet of similar space breaking ground in the coming months.
While completion of these new buildings will ease downward pressure on the supply of available space, demand dynamics remain very strong. The vacancy rate descended slightly from 0.96% in December of last year to 0.89% in the first quarter of 2022, yet another record low. This trend is mirrored in the supply of available space which currently sits at just over 350,000, down from 372,000 square feet at the end of 2021.

Increasingly aware of these circumstances, landlord expectations for rent payments have dramatically shifted. The median triple-net (NNN) asking lease rate is $9.43/SF, up 7.28% from the same figure at the end of last year. The median modified gross lease rate in Q1 of 2022 ($11.75/SF) is a staggering 17% higher than it was just three months ago ($10.01/SF).

At some point in 2022—possibly even now—the vacancy rate is likely to finally bottom out. However, demand for industrial real estate is poised to remain high. The aforementioned new construction projects are but a small fraction of Albuquerque’s market and with an average size of about 76,000 square feet, they only cater to a narrow pool of large tenants. There remains a noteworthy shortage of (and high demand for) space smaller than 20,000 square feet that does not currently have the prospect of new construction to look forward to. Moreover, New Mexico’s recent legalization of marijuana and the Federal Reserve’s planned interest rate hikes throughout 2022 benefit the market for leasable industrial real estate. The former will result in demand for space for growing and processing while the latter will increase the cost to borrow funds, transitioning the balance of affordability for users of industrial real estate away from purchasing and in favor of leasing.

 

Download: Q1 2022 Land & Industrial Quarterly Report

The Land and Industrial Q4 market research and data is compiled by NAI SunVista commercial real estate land and industrial specialist, Riley McKee. Riley advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.

It’s Been a Long Time Coming

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For nearly two decades Albuquerque has not built speculative distribution warehouses, however, the recent strength of the market is giving developers confidence to break ground and investors are paying attention.

Industrial activity has been lively, particularly the result of accelerated macro trends of the Pandemic and the legalization of recreational cannabis. Albuquerque’s industrial vacancy rates have remained below 1 percent for over two quarters- following vacancy rates hovering around a “then historic low” in the 2 percent range since September 2019.  The demand from users has continued to climb and tenants are facing lease rate increases.

While needing more speculative warehouses should be a matter of basic economics, it is not always easy to build in a tertiary market that lacks the memory of growth. Historically, Albuquerque would only secure a few 50,000 square foot users per year and the occasional 100,000+ square foot user, deterring developers from taking a chance on new construction. However, times are changing. Large tenants are taking note of Albuquerque’s access, affordability, and workforce, while existing users are seeking modern buildings for efficiency and growth.  

These factors combined with rental rate growth and a decrease in available space, has developers working to provide some relief in the form of new construction. Across the Albuquerque MSA there is currently over 230,000 square feet of new speculative construction in progress with an additional 360,000 square feet planned- none of which includes owner/user or build-to-suit construction. These projects will eventually translate into breathing room for tenants, but it will take time for the market to catch up.

NAI SunVista’s industrial brokerage team currently represents two speculative industrial projects, including Titan Development’s Westpointe 40 Industrial Speculative building- a 150,000 square foot distribution warehouse set to break ground in May of this year. The firm has been successful in developing speculative industrial projects in several Texas markets and are energizing their initiatives in Albuquerque. When asked why they now decided to build speculative industrial in New Mexico, Brian Patterson, Senior Vice President of Titan Development, said, “When we started to see the uptick in lease rates in 2019/2020, we were able to better prove our underwriting and move forward with a spec program.” Titan isn’t just looking at this project as a one-off, they have plans for a long-term Business Park in the heart of Albuquerque’s West I-40 distribution hub as a result of this demand.

Speculative construction isn’t only desired by users, there is growing fanaticism in the investment world as capital aggressively chases industrial assets. Patterson stated, “We have seen a strong response from institutional buyers interested in industrial development and investment opportunities in New Mexico. Many institutional groups are chasing higher yield and less competition as compared to markets such as Phoenix, Denver, DFW, Inland Empire, etc.”

Tertiary markets with healthy market indicators are gaining momentum, and Albuquerque is one of them. With Amazon, Facebook, Netflix, and other distributors investing in Albuquerque’s community, it’s setting the stage for more industrial growth and at last, new speculative construction.

Written by: Alex Pulliam Land & Industrial Advisor, NAI SunVista

NAI SunVista is a full-service commercial real estate company serving New Mexico since 1996. The company is a dynamic commercial real estate firm offering best-in-class real estate services in brokerage, property management, asset management, business brokerage and development services.

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