Land/Industrial Q1 2021 Market Report
One full year into the COVID-19 pandemic, the industrial real estate market continues its strong run, despite disruptions to just about every other industry in the US economy.
Vacancy rates have largely remained flat, though the current rate (2.29%) is roughly 0.4% less than it was 12 months ago (2.70%).
Lease rates—after a lengthy wait—seem finally to be trending upward with the median modified gross rate seeing 2.30% growth over the last 12 months and the median triple net (NNN) rate increasing 2.36% over the same period. While modest, this positive trajectory will hopefully promote new construction of industrial space that will restore vacancy rates to healthier, more sustainable levels.
Several local developers are working to fill the void with new projects underway in the Albuquerque MSA including 7200 Bluewater Rd. NW, a 150,000 square foot speculative bulk distribution facility near Unser and I-40 and 1533 Stephanie Rd. SE, a 21,000 square foot speculative multi-tenant office/warehouse project in Rio Rancho. As of this writing, the property is 89% pre-leased and set to be completed in mid-April 2021.
Other developers should take notice—the market is hungry for projects like these.
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.