Quarterly Reports

Summary

Albuquerque retail markets improved in 2019. Net absorption was up despite store closures around town. Median asking lease rates remained around $14/SF while community centers are the only property type to record a higher lease rate. Activity in the Albuquerque MSA continues to grow with the most active sectors being the experiential retailers, which include fitness, food and entertainment users. The most exciting examples are the Top Golf breaking ground on their only New Mexico location in February along Interstate 25 and Montano Blvd.

The booming Westside was excited to announce Chuze Fitness, Defined Fitness and another Planet
Fitness in it’s boundaries. Current retailers are making strides to draw the consumers needing experience based retail. Another retail project in the works is Nuevo Atrisco, a Westside mixed-use project city and county officials say is needed in the area, broke ground on Central Avenue and Unser Boulevard in April. The project is developed by Maestas Development Group.

Substantial changes are underway in the restaurant industry. Third-party delivery services are profoundly changing consumption patterns and also impacting a restaurant’s geographic reach. How should restaurant operators adjust their site selection criteria in the era of third-party delivery
services? Call us to discuss!

Retail_Q4 Market Review_Website

Summary

As 2019 wraps up, the industrial vacancy rate in Albuquerque is still hovering at or near its historic low.
The market appears to have stabilized as new vacancies are coming to the market at roughly the same pace as existing vacancies are absorbed. A scenario in which the vacancy rate drops significantly below its current level is unlikely, especially as new construction is finally, albeit slowly, coming about.

Median lease rates on a Triple Net (NNN) basis have jumped from $7.00 to $7.50 per square foot.
This is a promising sign as increases in NNN lease rates will be the primary driver of new construction.
Median lease rates on a modified gross basis remain steady, hovering within $0.10 of $9.00 per square foot.

Click here to download your copy of the 2019 Q4 Market Report

Summary

The industrial vacancy rate continues to trend downward and has reached multiple historic lows in 2019. Since July, the rate has increased roughly 0.4% which can be attributed to the addition of several recently vacated properties. New construction has not contributed much to this increase as only two projects are actively underway.
Median lease rates on a Modified Gross and Triple Net basis remain flat, a circumstance which is out of line with vacancy trends. While quality space is in short supply, tenant needs are not pressing enough to justify paying a premium. Low interest rates and competitive financing terms have caused some users to transition from tenant to owner, leaving the lease market permanently.

Click here to download your copy of the Market Report