Decreasing vacancy leads to historic low
The last quarter of 2018 ended once again with positive absorption, decreasing overall vacancy to just 4.13%, another historic low for the market. Roughly 60,000 square feet of space was absorbed, leaving only 1.72 million square feet vacant in the entire Albuquerque market.
With industrial vacancy continuing to decrease, Albuquerque is virtually reaching its capacity for industrial users, as much of the remaining inventory is functionally obsolescent. New construction has begun with several projects currently underway. 1.3 million square feet of industrial space is currently under construction. More new construction is anticipated to meet the demand for class A industrial space in the coming year.
Sunport South Business Park broke ground in the fall and held its official ground-breaking ceremony just after the fourth quarter ended. The property is anticipated to be a hub of economic activity for e-commerce, distribution, warehousing and manufacturing operations. It’s the only site in Albuquerque that can offer finished lots for industrial users.
Key factors this quarter
- Albuquerque’s vacancy continues to decrease to an all-time record low of 4.13%.
- Honeywell announced that it would be closing its 500,000 square foot Albuquerque plant and relocating operations out of state.
- Los Lunas Facebook data center has entered final stages of construction on the first of six planned buildings.