Surplus of sub-5,000 SF space available; New construction fades away
The vacancy rate for industrial real estate in Albuquerque increased slightly between the second and third quarters of 2025. However, its current level (4.26%) is nearly identical to what it was at the same time last year (4.24%).
The distribution of available space continues to be heavily tilted toward buildings/suites that are 5,000 square feet in size or smaller. Many of the vacant spaces in this category are located in multitenant industrial buildings and industrial parks. Those with layouts that align with conventional industrial tenant requirements (10% – 15% office, 12’+ ceiling heights, overhead door access, etc.) tend to re-lease quickly. Spaces impacted by functional limitations (e.g., too much office space relative to warehouse space), located in challenged submarkets (Downtown and Southeast Albuquerque) or priced based on construction costs are taking longer to fill.
Rent payments for newly built space in this size range can range anywhere from $14/SF to $16/SF, which outpaces the median asking lease rate by 20–30%.
The median asking sale price for vacant/owner-occupied industrial buildings in Albuquerque held steady between the second and third quarters of 2025 at $136.35 per square foot. That said, the market was considerably more active in the third quarter than in prior quarters this year.
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The Land and Industrial Q3 market research and data is compiled by NAI SunVista commercial real estate land and industrial specialist, Riley McKee. Riley advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.