Land/Industrial – 2024 Q1 Market Review

Vacancy at a 5-year high - a sign of a slowing market or something else?

Research and Analytics provided by Riley McKee, CCIM

The vacancy rate for industrial real estate in Albuquerque has increased above 3% for the first time since 2019 and is about four times higher than its all-time low two years ago. As landlords have adjusted to extraordinary demand by raising lease rates, the availability of space is normalizing. All things considered, this is good for the market.

As of this writing, the sum total of industrial space for lease is about 1,435,000 square feet. This figure has nearly tripled since the end ofthe first quarter last year, though a significant portion of the increase is concentrated in a few bulk vacancies that have come to market inrecent months. A facility formerly occupied by Honeywell (detailed in the last version of this report) remains the largest vacancy at 475,000SF. This space alone represents almost one third of the total vacancy in the market. Three other properties at or above 50,000 square feet were recently brought to market. When combined, these four spaces contribute roughly 695,000 square feet to the market—almost half of the total vacant space.

Just as measures of inflation rightly differentiate multiple factors that can influence the statistic, it is important to account for how the vacancy rate is distributed and not simply acknowledge the top line number. Outside of the four large vacancies mentioned above, the balance of current vacancies—including core space in the 2,500 – 25,000 SF range—adds up to only 1.8% of all existing space, signaling a still tight market.

Download: Q1 2024 Land & Industrial Quarterly 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.