A historically low vacancy rate goes lower
The first quarter of 2019 saw continued positive absorption for the Albuquerque industrial market, dropping the vacancy down even further into record breaking lows at 3.68%. Santa Fe’s industrial market has been introduced and can be found on page 3. The Santa Fe industrial market is tight with limited activity. Overall vacancy is 0.54% and rates are more than $10 triple net. In Albuquerque, the industrial market continues to see activity despite extremely limited available inventory. Sales drove a sizable portion of the market activity for some of the market’s largest vacancies.
The largest sale of the quarter was 6700 Bluewater Rd NW. Just under 63,000 square feet, the warehouse property is in the West Mesa submarket. It was listed for sale at a $3,000,000 asking rate. The property has not yet been occupied. The former Ritchie Brothers Auctioneers at 13510 Central Ave SW also sold in the first quarter. The 23,000 square foot property was purchased by Thermo King West. The transportation solution company has not yet occupied its new location.
6805 Academy Pkwy West, a 15,386 square foot former charter school, sold and will be occupied later in 2019 by Terracon Consultants, a geotechnical consulting service group. Terracon is expanding from its current location at 4905 Hawkins St NE. 3801 Academy Pkwy NE, a 20,000 square foot warehouse and 4210 Hawkins St Ne, a 16,300 square foot warehouse were also sold in the first quarter. Sales activity in the first quarter underscores the high demand for industrial ownership opportunities in Albuquerque.
Key factors this quarter
- Albuquerque’s vacancy has sunken further to 3.68%.
- Sales activity drove a large portion of the first quarter’s market activity. These sales will lead to more absorption later in 2019 after the properties are occupied.
- Construction has begun at the former FedEx Freight facility, which will create 135,000 square feet of new industrial space.