Tenants eye ABQ

The Albuquerque office market saw an uptick in office market activity during the second quarter. Primary markets are becoming more saturated and tenants are looking to secondary and tertiary markets to expand for better access to experienced labor and economic development incentives.

Albuquerque has been especially appealing to contact center tenants, as the state’s high concentration of bilingual speakers is well suited for these job types. In many states, contact centers are no longer eligible for economic incentive funding because it is being directed toward jobs with higher economic impact like manufacturing or corporate offices.

Although there is often a public perception that contact centers have a low economic impact, these jobs provide experience and development opportunities that directly benefit the community. These jobs are a stepping stone to advanced positions providing leadership and customer experience training, bolstering the quality of employees. Inbound contact centers require especially advanced training and accordingly offer higher than average pay.

Key factors this quarter

  • Contact centers are on the rise, and provide experience and development opportunities for the community.

  • The Albuquerque office market saw the highest positive absorption in over five quarters, dropping the overall vacancy rate below 18% for the first time since 2010.

  • Downtown Albuquerque continued to see new mixed-use projects that will boost daytime and nighttime population.