Land/Industrial – 2025 Q1 Market Review

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.

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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.