In 2024, Albuquerque’s industrial market was heavily influenced by strong owner-occupier activity. Businesses such as construction companies, regional last-mile distributors, suppliers, and large equipment sales groups led the charge in purchasing properties for their operations. These buyers often outbid investors, prioritizing functionality, location, and long-term usability over price.
Owner-occupiers were particularly drawn to existing properties due to rising replacement costs. Instead of building new facilities, many chose to renovate older properties to meet their needs. This trend limited investor opportunities, forcing them to focus on distressed properties requiring significant upgrades—an option that was scarce in a tight market.
New construction starts remained minimal in 2024, hindered by high interest rates and escalating construction costs from prior years. However, the latter half of the year saw a notable uptick in industrial land sales. Scarce but well-zoned and strategically located tracts were acquired by future occupiers, including contractors, automotive users, data centers, and specialized commercial operations. These transactions signal potential for new developments in the coming years.
Looking ahead to 2025, high-quality existing industrial properties are expected to maintain strong performance, driven by limited inventory and ongoing demand from growing businesses. Additionally, anticipated new construction projects could bring much-needed modernization to Albuquerque’s aging industrial supply.
Written by Alex Pulliam