Strong demand...limited inventory
The Albuquerque industrial market continues to be tight and the third quarter saw some large transactions that left the market even tighter. With limited available space brings big opportunity for developers and investors who can bring new, large space to the market.
The overall absorption for the quarter was positive and driven by a handful of large deals. Amongst those deals Flagship Foods leased nearly 76,000 SF of space at 530 Airport Dr. NW. 56,520 SF of space was occupied at 8600 San Mateo by Brady Industries. Bridgestone took a large chunk of space at 7501 Meridian, and Bunzl Distribution leased just over 25,000 SF at 8000 Bluewater. Another notable transaction for the quarter was the investment sale of 8333 Washington, a nearly 100,000 SF property. As an investment sale though, this transaction did not affect the quarter’s absorption.
Key factors this quarter
- Positive industrial absorption was driven by several large deals including Flagship Foods, which leased nearly 76,000 SF. This decreased the already limited industrial available space in Albuquerque.
- The demand for Industrial space is high, but Albuquerque does not have enough supply to fill it.
- Dirt will soon begin to move at Sunport South, making lots available for construction. This space is ideal for a developer to bring new supply to the industrial market.