Activity at desirable properties has been at a lull during the second quarter of 2018. Overall vacancy saw a decrease of 8 basis points from 4.99% to 4.92% vacancy. As overall vacancy continues to decline to an all-time low, anticipation for new construction is more intense than ever.
New construction has been at a stand-still in Albuquerque for several years. For the first time in years, new construction has broken ground on industrial projects.
Wagner Equipment Co., currently located at 4000 Osuna, has just broken ground on a $100 million expansion. This massive project is the result of Bernalillo County’s largest industrial revenue bond. The new facility will be 200,000 square feet, built on 58 acres of land at the southwest corner of Rio Bravo and I-25. Construction began at the end of May and is anticipated to be completed at the end of 2019 or beginning of 2020.
Key factors this quarter
- For the first time in years, new construction has broken ground on large industrial projects including an over 200,000 square foot FedEx Freight facility.
- Bernalillo’s largest industrial bond kick started a $100 million expansion of Wagner Equipment Co., which broke ground in May.
- Albuquerque’s industrial market has a critically low supply of available Class A space. This space makes up less than 0.15% of the total inventory.