Following a discussion about preserving historic Route 66 motels on the Albuquerque blog Duke City Fix, contributor Arizona Phil found this fascinating Albuquerque Journal story about developers converting the old Cactus Motel, along old Route 66 in Santa Fe, into the Cactus Centro business center.
The anchor is the Sun Loan Company, where the former motel office was on the street side. On the parallel L, there are 14 small spaces, all of which are leased; the last business is just moving in.
Small wonder the property was easy to fill. According to John Shepler of Grubb and Ellis New Mexico, commercial rents for small storefronts in the area have ranged from $12 to $18 per square foot this year, plus utilities, and most owners require a five-year lease.
The Cactus Centro units are tiny by most commercial standards — an estimated 300 to 400 square feet, including bathroom — but the rent is a flat $650 per month, utilities (except telephone) included, and the required lease is only one year.
The low rent with fixed expenses makes for comfortable economics, appealing to a yearning entrepreneur with limited startup capital.
We actually stayed in the Cactus Motel a few years ago. It was an OK place, but you could tell it wasn’t going to last much longer as a $40-a-night destination in a high-rent town that has a plethora of lodging options. I’m glad to see the motel found a second life.
And the Cactus Centro’s success is another strong rebuttal against Richard L. Gonzales’ argument that El Vado Motel in Albuquerque is no longer economically viable.
This is now a mostly residential DUMP. Drugs are freely and openly traded.