Commercial Real Estate (CRE) is property that is exclusively used for business-related or income-generating purposes. It’s a broad category that can cover everything from a single storefront or strip mall to restaurants and healthcare facilities. The four main categories of CRE services are: office space; industrial; multi-family rentals and retail. It does not include residential real estate, which is generally handled by realtors and real estate agents. Here in southern New Mexico, 1st Valley is the premiere source for brokerage of CRE and investment services.
Jake Redfern, 1st Valley broker believes the reason for that designation is because 1st Valley is the only firm in southern New Mexico that offers the full service of both commercial brokerage and management. “We’ve sold water rights, liquor licenses, farms, orchards – we recently sold a winery in La Mesa – so we can broker anything under the sun that isn’t a house,” he says. “Water rights and liquor licenses are a big interest here in New Mexico. They require their own expertise and understanding of processes at the state level. It’s a unique service we provide.”
The other side of that coin is property management. “1st Valley employs around 30 people to manage just under 2 million square feet of retail, office, and industrial properties in southern New Mexico,” Jake says. Included in that wheelhouse are multi-family properties and, just recently added, the management of Homeowner’s Associations (HOAs) in Las Cruces and Doña Ana County.
When it comes to owning, maintaining, and leasing commercial real estate, it can be a bit overwhelming for the owners of the property. That’s where 1st Valley comes in, by helping the owners find, manage, and retain tenants, while also overseeing leases and financing options. It can even include the coordination of property upkeep and ensuring the property maintains its marketability. Understanding that rules and regulations governing the ownership of property vary by state, county, municipality, industry and size takes a special kind of knowledge and execution.
Investing in commercial real estate is also a hot ticket item that is both high-risk and high-reward. It can be lucrative and, unlike the rise and fall of stocks, investment in commercial real estate can serve as a hedge against the volatility of the stock market. Not only do investors make money through property appreciation when they sell, they also have the added income that comes from tenant rents. The cons, of course, are that more capital is required up front, a higher rate of regulation, and the illiquidity of assets, meaning they cannot be sold off quickly without a substantial loss in value.
One of the biggest advantages of owning commercial real estate is leasing rates. Not only can they provide monthly cash flows, but they also generally have lower overhead costs. They also benefit from longer lease contracts, which provide cash flow stability, as long as the property is occupied. If the property is properly maintained and kept up to date by the management firm, the potential for capital appreciation is high and can offer a stable source of income for the owner until it is sold. Which is why it is so important to choose the right brokerage and investment firm.
1st Valley does all that and more, helping the owners of CREs by tracking the rules and regulations that govern such investments. The taxes, mechanics of purchasing and maintenance responsibilities for commercial properties can be a nightmare for those who don’t understand such legalese. Especially when it comes to the shifting requirements of state, county and industry zoning practices.
For those looking to invest in CRE properties, 1st Valley provides expertise and knowledge that can inform and prepare first time buyers and property moguls alike. If you are in the market, or are simply weighing the possibilities, give us a call at 575-521-1535 or admin@1stValley.com.