Land/Industrial – 2023 Q4 Market Review
Industry News | Land & Industrial | Quarterly Reports
Vacany rate increases are acclerating; a troubling sign or a return to normalcy?
Research and Analytics provided by Riley McKee
At 2.72%, the vacancy rate for industrial real estate in Albuquerque is at a two year high. This signals that the market is probably normalizing after several years of extremely limited supply.
The sum total of vacant space now exceeds 1,000,000 square feet for the first time since 2020. New construction, along with a couple of bulk vacancies (more on that below), are primary contributors to this increase. Highlighted in the last edition of this report was the completion of two new buildings (bulk distribution warehouses located at 9210 Daytona Rd. NW and 3750 Prince St. SE, respectively) which, combined, contribute roughly 200,000 square feet of space to the overall vacancy rate (as of this writing).
The median triple-net (NNN) asking lease rate continues to stabilize in the low to mid $11.00 per square foot range. Of the 78 spaces currently on the market, only 7 have an asking price below $10.00 per square foot. Modified gross lease space is making a bit of a comeback. After nearly disappearing as a category in recent years, there are currently 21 properties with that lease structure on the market with a median asking lease rate of $13.92/SF.
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.