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Land/Industrial – 2026 Q1 Market Review

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Industrial Vacancy Hits Two-Year Low in Albuquerque

The vacancy rate for industrial real estate in greater Albuquerque decreased to 3.38% at the end of Q1 2026, marking a twoyear low and reinforcing continued supply constraints across the market.

A handful of sizable leases contributed meaningfully to the decline in vacancy:

• 3750 Prince St. SE: 80,000 square feet of first-generation bulk distribution space in the South Valley submarket.
• 8551 Saul Bell Rd. NW: 22,880 square feet of warehousing/manufacturing space in the West Mesa submarket.
• 10500 Copper Ave. SE: 20,740 SF of lab/research & development space in the Southeast Heights submarket
• 4901 Rockaway Blvd. NE: 16,800 SF of office/warehouse space in the Rio Rancho submarket.

To read the full report click the links below:

Lease Report: Q1 2026 Land & Industrial Quarterly Lease Report

Sale Report: Q1 2026 Land & Industrial Quarterly Sale Report

The Land and Industrial Q1 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.

Land/Industrial – 2025 Q4 Market Review

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Vacancy drops below 4% as new leases outpace new vacancies

The vacancy rate for industrial real estate in Greater Albuquerque finished the year at 3.89%, its lowest level since the end of Q2 2024.

Roughly one third of the quarter-over-quarter reduction in vacancy can be attributed to three notable leases:
• 4931 Paseo del Norte NE: 31,000 square feet of bulk distribution space; leased to a local third party logistics (3PL) company.
• 3005 Broadway Blvd. SE: 25,000 square feet of bulk distribution space; leased to BZO Wheels, a Houston, Texas based wholesale distributor of wheels and tires.
• 541 Airport Rd. NW: 74,000 square feet of bulk distribution space leased to a single-tenant industrial occupier.

To read the full report click the links below. 

Download Lease Report: Q4 2025 Land & Industrial Quarterly Lease Report

Download Sale Report: Q4 2025 Land & Industrial Quarterly Sale Report

The Land and Industrial Q4 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.

Retail – 2025 Q4 Market Review

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Q4’25 Recap: Light at the End of Tunnel for New Construction, A+ Sites Remain Competitive

The final quarter of 2025 brought illuminated signs of stronger activity in the retail sector, which I believe will continue into 2026. On a macro level, many believe interest rates will be settling below 6% by year end, contingent upon slowing inflation and additional rate cuts. Locally, several new construction retail projects including, Lobo Crossing and Oxbow Center are gaining momentum with pad and shop space tenants.

The continued theme of positive rent growth was evident in Q4 of ’25, with a jump from $19.01 in September ‘25, up to $19.14 at the end of December ‘25. Rates for prime spaces have remained competitive, while B and C properties tend to remain stabilized. Medical and restaurant users primarily lead the way for premium rents and a similar “flight-to-quality” phenomenon, seen in the office market over the last twelve months, is occurring in the retail category.

Download Full Report: Q4 2025 Retail Market Report

The Retail Q4 market research and data is compiled by NAI SunVista commercial retail specialist, Ethan Melvin. Ethan advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.

Retail – 2025 Q3 Market Review

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Q3’ 25 Recap: Pockets of Opportunity Persist AmongVacancy Pressures

The third quarter saw notable transactions in both the leasing and sales side of the retail market, with several big box spaces across the city backfilled and a handful of multi-tenant retail investments transacting. Also of note, many tenants are continuing to find it difficult to lock in quality spaces, especially in trade areas North of Menaul and on the Westside. The spread between asking rates in premium locations and those in less desirable corridors continues to grow as tenants optimize for higher quality real estate and
demographics.

In the typical fashion seen over the twelve months, retail NNN rates pressed on in Q2 with a positive trend, reflecting an average asking rate of $19.01 in September ‘25, up from $18.54 at the end of June ‘25. As mentioned in previous editions of this report, the West side, North of I-40 and the Far Northeast heights commanded the highest rates for second generation space, which generally range from $20 – $30/per foot + NNN. On average, rates for new retail construction, although highly dependent on delivery conditions and size, start in the mid to high thirties per square foot.

Download Full Report: Q3 2025 Retail Market Report

The Land and Industrial Q3 market research and data is compiled by NAI SunVista commercial retail specialist, Ethan Melvin. Ethan advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.

Land/Industrial – 2025 Q3 Market Review

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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.

Download Lease Report: Q3 2025 Land & Industrial Quarterly Lease Report

Download Sale Report: Q3 2025 Land & Industrial Quarterly Sale Report

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.

Retail – 2025 Q2 Market Review

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Duke City Retail Remains Resilient and Landlord-Favorable

The tariff saga mentioned in the Q1 iteration of this report has yet to have a dramatic impact on the retail market in Albuquerque, although the long-term effects are still uncertain. Despite cooling in asset classes like industrial & multifamily, retail has remained resilient and continues to be a desirable asset class to investors, both local and national.

Retail NNN rates jumped in Q2 to an average asking rate of $18.57 in June ‘25, up from $18.32 at the end of March ‘25. On the west side areas, including the Southwest Mesa, asking NNN rates are above the city-wide average with a rate $20.84/psf at the end of June ‘25. As may be expected, east side asking NNN rates are closer to the city-wide average, with a figure of $18.30/psf.

Download Full Report: Q2 2025 Retail Market Report

The Land and Industrial Q2 market research and data is compiled by NAI SunVista commercial retail specialist, Ethan Melvin. Ethan advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.

Land/Industrial – 2025 Q2 Market Review

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Stabilizing vacancy rate and steady rents mark Q2

At the end of last year, the vacancy rate for industrial real estate in Greater Albuquerque peaked at 4.91%, following nine straight quarterly increases. But in the last six months it has dropped to just over 4%, indicating a possible stabilization of the market. As of this writing, 150 independent units are available for lease. Of those, 50% (75 units) measure at 5,000 square feet or less. Availability steadily declines as unit size increases: 37 units are available in the 5,001 – 10,000 SF range; 19 units are available in the 10,001 – 20,000 SF range; 9 units are available in the 20,001 – 30,000 SF range; 2 units are available in the 30,001 – 40,000 SF range; and 3 units are available in the 40,001 – 50,000 SF range.

However, there remains an oversupply of units in the 50,000 SF+ range (5). Large, bulk spaces like these are challenging to lease in the current market. The tenants that occupy them (typically large, multinational companies) have been holding off on relocating or expanding amid tariff uncertainty and the lingering high interest environment, among other factors.

Download Lease Report: Q2 2025 Land & Industrial Quarterly Lease Report

Download Sale Report: Q2 2025 Land & Industrial Quarterly Sale Report

The Land and Industrial Q2 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.

Retail – 2025 Q1 Market Review

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Q1’25 Recap: Core Retail Remains a Hot Commodity, Investment Inventory Stacks

In national news, the winner of the trending topic of the quarter is…Tariffs! While not a subject of this quarter’s update, the potential ramifications of Tariffs on the retail landscape in Albuquerque are significant and directly impact the sales expectations of national, regional, and local businesses. Pending the stickiness of the new policies, I expect more significant shifts in the metrics reported here in the future.

Retail NNN rates have remained in the $17.84 – $18.42 range since data collection for this report began in April of ’24. This is primarily affected by the available inventory and not a larger force moving asking rates significantly in one direction or the other. In the Taylor Ranch, Ladera, Ventana, Cottonwood, and Paradise Hills trade area, rents have slightly ticked up over recent months. As of March ’25, the average asking NNN rate in these trade areas is $21.68, whereas the average for the Eastside of Albuquerque sits at $17.70 at the close of Q3.

Download Market Report: Q1 2025 Retail Market Report

The Land and Industrial Q4 market research and data is compiled by NAI SunVista commercial real estate land and industrial specialist, Ethan Melvin. Ethan advises industrial and logistics real estate owners and occupiers on leasing, acquisitions, and dispositions.

Land/Industrial – 2025 Q1 Market Review

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Vacancy dips, but continues to trend upward

For the first time since September 2022, the vacancy rate for industrial real estate in Albuquerque and Rio Rancho has declined, this time from 4.91% to 4.04%.

However, this reduction is primarily attributable to a single lease of a large space. Previous editions of this report have refer-enced the ±500,000 square foot facility formerly occupied by Honeywell (located at 9201 San Mateo Blvd. NE). Per multiple news outlets (linked to below), that facility has since been leased to Maxeon, a manufacturer of solar panels. For several years Maxeon was rumored to be interested in building a large manufacturing campus in Mesa del Sol, though those plans may no longer be on the table. Given the company’s spotty track record of following through on big announcements, this report will continue to monitor the availability of 9201 San Mateo.

The distribution of space availability is shifting in favor of smaller unit sizes. As of this writing, over 50% of all vacant units in Albuquerque are 5,000 square feet or below, up about 15% from the previous quarter. Available units in the 30,000 – 40,000 square foot range and 40,000 – 50,000 square foot range remain the scarcest, while the distribution of spaces in the 5,000 – 10,000 square foot range and 10,000 – 20,000 square foot range appear to be within their normal range.

Download Lease Report: Q1 2025 Land & Industrial Quarterly Lease Report

Download Sale Report: Q1 2025 Land & Industrial Quarterly Sale Report

The Land and Industrial Q1 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.

 

Tariffs Impact on Commercial Real Estate

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An April 10, 2025 article in The National Observer suggests that tariffs will likely have an indirect—though noteworthy—impact on commercial real estate, at least in the short term. While uncertainty around tariffs has already influenced the pricing of construction materials, the broader effects on commercial real estate may take longer to surface. The 90-day pause on tariffs for most countries—excluding China, which faces a steep 125% tariff—offers temporary relief, but concerns remain.

Should the economy tip into a recession, as some economists have warned, dealmaking and activity in the commercial real estate space are expected to slow. This would largely be due to uncertainty surrounding replacement and construction costs, which could hinder both new development and ongoing projects. The current economic instability is likely to impact future construction timelines and may also delay lease negotiations for developments already in progress.

As the reshoring of jobs to the United States gains momentum, there’s a growing need to ensure adequate housing. Developers are increasingly exploring office-to-residential conversions in urban centers across the country, along with new housing developments nationwide, to meet this demand.

On a more optimistic note, Avison Young reported that first-quarter 2025 leasing activity reached its highest level since 2018. Additionally, availability rates have dropped to their lowest point since 2020. Gordon Ogden, Executive Managing Director at Bradford Allen’s New York office, noted that the “flight to quality” trend has expanded beyond Class A buildings to include well-located, high-quality Class B assets. While elevated vacancy rates and macroeconomic headwinds continue to challenge lower-tier properties, these developments suggest the market may be on the path to recovery.

Bringing this closer to home in Albuquerque, the demand for Class A office space remains strong, as tenants continue to prioritize quality. Class B property owners have also made strategic upgrades, resulting in steadily declining vacancy rates in that segment.

However, consumer fatigue remains a concern. With consumer spending making up nearly 69% of U.S. GDP, the mounting financial strain on households could have far-reaching implications. Recent data points to increasing stress among consumers, raising questions about how many families will manage basic expenses—such as groceries—during the upcoming summer months when school meal programs are unavailable.

In conclusion, the commercial real estate sector stands at a crossroads. While there are encouraging signs in leasing activity and demand for quality space, challenges persist—from tariff-related cost pressures and economic volatility to consumer fatigue. The months ahead will be critical in determining whether the sector can weather these headwinds or will need to adapt further to evolving economic conditions.

 

Written By Shelly Branscom

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