The front page of the Albuquerque Journal's Business Outlook yesterday read, "Signs of Life". It was regarding the recent report by Moody's ranking Albuquerque among the top 10 healthiest commercial markets in the nation.
The opening sentence reads, "The tide may have turned for the local commercial real estate market." Well you will have to excuse us if, once again, we seem to be dousing this fire with "reality water". Is the commercial market better in Albuquerque? It probably is. However, the signficant moves in our market have come from industrial, limited-service hotel and full-service hotel. We would not exactly say those are indications that "the tide may have turned." But why not? Because the article also says, "The office market is where commercial real estate in Albuquerque clearly reveals substantialdistress from the economic recession." This is, in our humble opinion, are far bigger indicator of what is really going on with the commercial market here.
They all work together, don't get us wrong. But when you have such a huge portion of the commercial market as office space that is going to have a more substantial effect than some of the other areas. It's good news that those other areas are increasing. But it is equally bad news that the office market is struggling so greatly. As the article also says, "...market health is a relative commodity in commerical real estate..." It just seems a bit irresponsible to say "the tide may have turned" when clearly many, many people are still nose deep in it. We know several people who would not only say the market has not turned, but it is worse. As the article said itself, market health is a relative commodity.
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