Out with the dated; in with the updated
Albuquerque’s office market continues to lag behind most of the nation following the Great Recession. Entering 2017, large office spaces, primarily in the Downtown submarket, continue to move slowly while small offices get absorbed relatively quickly. However, as the market begins to gain traction, demand from local companies for newer updated space has grown, spurring a revival.
Albuquerque remains over-built and under-demolished, with many office buildings being functionally or economically obsolete. Demand has become concentrated on quality rather than size of space. Market activity has been primarily horizontal and has driven several buildings to be repurposed, redeveloped, or renovated.
Key Factors this Quarter
- Growth within the Albuquerque office market has continued to be sluggish due to quality deficiencies within its inventory
- Large projects such as ART are working towards increasing population density and improving connectivity, while also catalyzing development and redevelopment along the Central Ave corridor
- Tenants are continually searching for quality over quantity to fulfill their office needs
- Smaller office spaces are in high demand while movement remains minimal in medium and larger spaces