Land/Industrial – 2024 Q4 Market Review

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.

After a brief stabilization, vacancy is on the rise again

Research and Analytics provided by Riley McKee, CCIM, SIOR

For the ninth consecutive quarter (dating back to September 2022), the vacancy rate for industrial real estate in Greater Albuquerque has increased. At 4.91%, the current figure is at a 6-year high and continues to be driven by bulk vacancies, though completion of some new construction has also played a role.

As referenced in previous editions of this report, vacancy in the market is top heavy. A handful of spaces larger than 30,000 SF (14 total) comprise well over half of total vacancy (just under 65%). This circumstance intensified in the fourth quarter when US Cotton announced that it was shutting down its operations in Rio Rancho and will soon be vacating just over 182,000 square feet spread across three buildings. Furthermore, a building products supplier brought to market its roughly 40,000 square foot space located near the intersection of Paseo del Norte and I-25 for sublease.

For cash flowing industrial investment properties, the median asking price as measured by the property’s capitalization (cap) rate was largely flat, floating between 6.50% and 6.83%. Due to elevated interest rates and the resulting drop off in sale activity for investment properties nationwide, the flat trend shown below can be mostly attributed to properties remaining on the market for most, if not all, of 2024.

Download Lease Report: Q4 2024 Land & Industrial Quarterly Lease Report

Download Sale Report: Q4 2024 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.