arizona

Retail Tragedy and Triumph

March 5, 2016 By Donald Teel Leave a Comment

Prescott retail commercial real estate No, the dark moments of 2008 are not yet behind us. The Prescott and Prescott Valley, Arizona retail markets appear to be booming…emphasis on “appear.”

Looks can be, and often are, deceiving. Our local retail shopping centers we may be repeating history by overbuilding in a flat market that cannot sustain the economic demands of retailers.

Hearing the Giant Sucking Sound

Prescott and Prescott Valley are now two distinct retail markets with minimal consumer crossover. Frontier Village was Yavapai County’s first major retail mall. Prior to its development consumers shopped at what was then called “Ponderosa Plaza” located on Gail Gardner Way between Willow Creek Road and Iron Springs Road. At this point in retail history, Prescott Valley was still in a state of retail infancy.

As a result of the housing boom [Read more…] about Retail Tragedy and Triumph

Road Kill: Tenant Trough, Part 2

May 12, 2010 By Donald Teel Leave a Comment

Here we are again, with time on our hands to engage in a little Commercial Real Estate Road Kill where we can shoot the breeze about CRE. This is a continuation of my rambling discussion about the current “The Tenant Trough” that is impacting office and retail owners.

This was shot while tooling down Interstate 40 between Flagstaff and Kingman, Arizona. It’s all part of a new feature for this blog entitled CRE Road Kill. Stay tuned for more CRE Road Kill.

Donald Teel is a Senior Associate and Principal with Arizona Commercial, an Arizona commercial real estate brokerage and property management firm, headquartered in Prescott, Arizona. Need more information? Please call 1-877-777-9100 or, if you prefer, you may email Donald Teel

Challenging Property Tax Values

September 21, 2009 By Donald Teel Leave a Comment

Posted by Donald Teel – Arizona Commercial

In today’s commercial investment environment, property taxes can be lethal. Many investors are still paying property taxes that are reflective of the market run-up of 2000-2006 and not necessarily on the current valuations of their investments.

The questions are what can you do about inflated tax valuations, where do you turn and more importantly, how can investors challenge property tax values successfully?
[Read more…] about Challenging Property Tax Values

Upon these Three the Deal Hinges

July 3, 2009 By Donald Teel Leave a Comment

Posted by Donald Teel, Arizona Commercial

Taking the guesswork out of commercial real estate investment requires more than a hope, a prayer and signature.

The genesis of commercial real estate investment is found in the analysis of the basic math surrounding the transaction. Costs, cash flow, depreciation, appreciation, money in and money out. Math is the science of the deal.

While the origin of commercial transactions is found in the science of basic mathematical functions, the art of performance is found in the crafting of the document; this is the model. Well crafted documents are extensions of the numbers and the intentions of the principals.

If there is to be any semblance of predictability of performance such must be memorialized and embedded in the language that constructs the investment, i.e., the purchase agreement or lease agreement.
[Read more…] about Upon these Three the Deal Hinges

Tenant Protection When Landlord’s Property Is Foreclosed!

May 22, 2009 By Lee Sterling Leave a Comment

evictionnotice1

I’ve mentioned the SNDA in previous posts (Subordination, Non-Disturbance, and Attornment). The ND portion refers to non-disturbance of the tenant’s right to have its lease recognized as valid in the event of the foreclosure of a senior trust deed. The S refers to the Subordination clause and the A refers to the Attornment clause. I’ll discuss the Subordination and Attornment clauses in separate blog posts. From the Tenant’s standpoint, the non-disturbance clause (“ND”) is most important.

The use of the Non-Disturbance Agreement depends on the timing of the recording of the trust deed and the recording date of the lease (or the recording of a Short Form Notice of Lease) ,collectively “Notice”. Usually neither the Tenant nor the Landlord want the whole lease recorded. The lease may or may not provide for the recording of a Short Form Notice of Lease. As a Tenant you may want a Notice recorded. Check with your attorney for advice.
[Read more…] about Tenant Protection When Landlord’s Property Is Foreclosed!

Is It Safe To Enter the Water?

May 7, 2009 By Allan Woodruff Leave a Comment

We’ve all been hearing and reading “gloom and doom” from the media.

But we know from history that turning points come while the masses are still moaning about how bad things are.

So are we at a turning point? Are we close enough to jump back into the market?

Here are a few facts investors can consider in refining their commercial real estate investment strategies on either the buy or sell side:

The deleveraging process will take more time as we work through the process of restoring sanity to private and corporate finances. We’ve lived through a period of very high leverage which must be unwound. Habits and attitudes must change as investors take a more realistic view on risk, increase savings and reduce spending.
Yes, there are economic “green shoots” being seen this spring. Witness the stock market rally and an upturn in existing single-family residential (SFR) real estate sales in February. Consumer Confidence rose slightly from March to April, according to the Conference Board. SFR affordability has reached a multi-year high due to collapsed prices and interest rates at their lowest levels since about 1971. The “transition point” (the inflection point at which prices fall slower than they had been) seems to have occurred in the SFR market, so there is evidence that SFR prices will find a bottom soon. Prices are typically at early-2004 levels or lower.

25,000 sf Retail Investment in Prescott, Arizona

May 7, 2009 By Mary Jo Kirk Leave a Comment

Goodwill of Central Arizona has just signed a new 10 year lease offering an 8% Cash on Cash return.

This is an excellent opportunity for an investor to acquire a value added, well located commercial investment property in Prescott, Arizona.

The existing lease is a new 10-year absolute NNN lease with increases and percentage rent and two five-year options to renew.

In addition, the property includes a 4,500 sf pad for retail expansion.

Property Description:
ASSUMABLE FINANCING. 5.75%, 27 year note, 15 years with option to renew at market rates. 8% CASH ON CASH. Single Tenant new 10-year Absolute NNN Lease with Escalations and Percentage Rents. 25,000 sf. Investor opportunity to acquire a well located, value-added asset with no landlord responsibilities. Includes a 4,500 sf Pad for additional expansion. Goodwill of Central Arizona is one of the largest and oldest nonprofits operating in the state of Arizona for more than 60 years.

Location Description:
Located within the Prescott Towne Center, a 53,000 sf retail center comprised of 3 buildings directly across from Village at the Boulders with Super Wal-Mart, Big Lots, Tuesday Morning, JoAnn’ s and Dollar Tree.
[Read more…] about 25,000 sf Retail Investment in Prescott, Arizona

Facing a New Commercial Reality

May 1, 2009 By Donald Teel Leave a Comment

When I am asked, “What do you think my commercial property is worth?” I cringe and feel less than completely at ease with the answers I know honesty demands.

It is not that I am reluctant to be completely transparent with a client. That is the easy part. The difficulty lies in communicating to commercial property investors that they may be facing a new commercial reality.

Our new commercial reality contains several characteristics that make buying and selling, leasing and landlording and other forms of investment more precarious than perhaps in times past.

Heads I Win Tails You Lose

Commercial real estate values are tipping and for some investors it doesn’t matter what side of the coin comes up.

In a majority of major commercial markets commercial property is softening and for those who purchased in 2005-2007, things may be less than stellar. This is also true of commercial real estate markets like Prescott, Arizona.

Owners who purchased in the 2005-07 framework invested at the top of the market…they bought high.
[Read more…] about Facing a New Commercial Reality

Centerpointe East – Amazing Industrial

April 14, 2009 By Donald Teel Leave a Comment

2997 Centerpointe East, Prescott, Arizona - Newer Industrial

This is but one example of the tenant-investor opportunities available in the central and northern Arizona market areas.

Centepointe East features the newest industrial property opportunities in the market and this piece is the most affordable of them all.

Property Description:

New free standing industrial building with 3 overhead doors, good parking, in new business park. Ask about Owner terms for potential purchase.

Location Description:

Located off Highway 89A between the communities of Prescott, Prescott Valley and Chino Valley, easy access to 1-40, and 1-17

Lease and Purchase Information:

There are three suites available within this building; Two 1,500 s.f. and one 2,000 s.f. Best of all they are priced at an amazing $0.25 per s.f. per month, plus NNN. In addition, this property can be purchased with a potential seller financing.

Contact me about this property or email me. If you prefer, you may call me toll free at 1-877-380-1000.