Opportunities for growth on the horizon
The Albuquerque industrial market has remained tight with limited space and stable prices. Flux in the political climate has steadied and new tax policies are on the horizon. The industrial market has seen a new, cautious but optimistic outlook over the last quarter. There is positive movement expected over the next year.
There are many alternative use plays happening in Albuquerque’s industrial market. While this means that deals are being done, it’s not an indicator of a strong economy. Industrial manufacturing users have a higher positive impact on the overall economy. According
to information collected by the U.S. Bureau of Economic Analysis, manufacturing jobs have a 64% higher economic multiplier than entertainment jobs and almost 85% higher than education jobs. Economic multipliers are the additional output generated by a dollar’s worth of demand for an industry. So while alternative uses are better than no use, new manufacturing jobs are needed to stimulate and strengthen the economy.
Key factors this quarter
- Albuquerque’s industrial market has remained mostly stagnant, but there is budding optimism for the upcoming year
- The residential housing market in the city has substantially picked up, which has positive effects on industrial warehouse and yard space
- The city has numerous opportunities to help catalyze growth within the market, and to eat up much of the obsolete industrial space