Large lateral moves
The Albuquerque retail market saw a large absorption of nearly 85,000 square feet, decreasing overall retail vacancy by 29 basis points to 7.71%. The majority of this absorption was in the Cottonwood submarket at the Cottonwood Mall.
In the third quarter Hobby Lobby announced that it would occupy a little less than half of the total Macy’s vacancy. The craft store occupied most of the second floor at the start of the holiday season. Hobby Lobby was formerly located at 9350 Eagle Ranch Rd in a free-standing building just over 65,000 square feet. This property was vacated in the fourth quarter, resulting in a new 65,520 square foot vacancy. However, the property was 100% leased before the end of the quarter. Chuze Fitness, a new to market gym concept, announced its entrance into the Albuquerque market in the fourth quarter with two locations. The first location is the former Toys R Us at Winrock and the second is the recently vacated Hobby Lobby.
During the fourth quarter, Home Life furniture and Mor Furniture For Less announced they would be occupying the remaining Macy’s space. Mor Furniture has not opened yet, but it anticipates opening in 2019. Mor Furniture has one location at 4920 Menaul Blvd. Home Life Furniture was previously located at Cottonwood Corners. The furniture store closed its old location and occupied its Cottonwood Mall location in the fourth quarter.
Key factors this quarter
Cottonwood Mall announced two new tenants that will backfill part of the former Macy’s space, Mor Furniture For Less and Home Life Furniture.
Sears closed its only remaining Albuquerque location at Coronado Mall leaving a roughly 50,000 square foot vacancy.
Albuquerque continues to see net positive openings for microbreweries.