Land/Industrial – Q4 2021 Market Review
Land & Industrial | Local News | Quarterly Reports
How low can it go?
News of speculative industrial space finally under construction in Albuquerque is welcome, but year-end vacancy rate figures insist that far more is required to avoid stifling what could be healthy growth in the real estate market.
The monthly average vacancy rate in the fourth quarter of 2021 hit a new low (surprised?) of 0.96%, down almost half a percent from the previous quarter and the first time the figure has been below 1%.
High construction costs: helpful and harmful all at once
Elevated rent costs, low interest rates, and excess liquidity combined to promote a dynamic sale market for industrial real estate in 2021, one that performed near as strong as the market for leased space.
In recent years the average value per square foot for vacant, owner-occupied industrial real estate has surged from just under $69 in 2016 to roughly $99 at the end of 2021. Properties located in Albuquerque’s favored North I-25 Corridor continue to realize the highest price points, but previously neglected submarkets are catching up. Amazon and Netflix have brought new attention to the West Mesa and South Valley, peripheral areas where savvy buyers once sought undervalued opportunities. Today, those submarkets are among the most competitive.
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.