Vacancy goes lower, construction taking off
In Q3 2020, Albuquerque’s industrial vacancy rate continued to make history, dropping to another all-time low of 2.51%, a 30 basis point drop from the previous quarter. The majority of the quarter’s 123,259 square feet absorption took place in the North I-25 submarket, where most of the market’s vacant space has been concentrated.
Demand has continued to drive Albuquerque’s vacancy lower, making quality industrial space virtually nonexistent. This is evidenced by the significant decrease of nearly $1.00 per square foot NNN in average asking rates at the close of the third quarter. Albuquerque’s available industrial inventory is primarily Class C space with lower asking rates. This lack of quality industrial space has spurred adaptive reuse projects, new construction, and strong demand for industrial investment opportunities.
Key factors this quarter
- Albuquerque’s industrial inventory reached another historic low of 2.51% with overall positive absorption of 123,259 square feet.
- Amazon’s 2.5 million square foot fulfillment center has gone vertical and its outline can now be seen along the Albuquerque West Mesa skyline.
- New construction is likely to continue with a new development in the planning stages for an 80-acre site adjacent to the Sunport International Airport.