Market follows residential growth
The Albuquerque industrial market is keeping an eye on the
dirt. Industrial market growth follows closely behind residential construction, so housing lots being developed and moving
dirt means industrial take off as well. With the housing market continuing to pick up and construction projects moving out of their planning stages, the market is on the cusp of growth.
Generally, there is a six-month lag between residential and industrial growth. According to the Albuquerque Business First Recovery Index, the Albuquerque home sales prices are 97.5% recovered. Existing homes are selling at competitive rates, and ground up construction is taking place. The uptick in the housing market has also contributed to the boom of demand for apartments and luxury apartments. Most apartments in the MSA boast occupancy rates in the high 90s.
Key factors this quarter
- Albuquerque’s industrial market is watching and following closely behind the city’s residential construction, which is on the cusp of growth.
- Industrial land is in high demand and short supply, therefore land & construction prices are high resulting in industrial tenants preferring sole occupant owner opportunities.
- Projects like Innovate ABQ will initially benefit the industrial market by increasing demand for small R&D spaces and hopefully lead to expansion in local manufacturing and distribution centers.