Q2 2020 Santa Fe Market Review
The industrial market is characterized as a very stable asset class, and in the face of these uncertain times, it is standing firm. So far this year, the pandemic has not had a large impact on the industrial market in Santa Fe, although nationally some distribution centers have been affected due to the slowdown in the retail sector. In Santa Fe, industrial businesses are still active, and vacancy rate is relatively low at 6.67%. That number is consistent with the 5-7% vacancy rate for the last few
years. During the second quarter, lease rates average $12.19 per square foot, and sale prices have averaged $117.47 per square foot.
There is an opportunity for investors to build speculative space due to a general shortage of industrial space larger than 8,000 square feet. Varieties of businesses are starting to make plans for expansion to Santa Fe, but they have not found available buildings. We might see them in the near future occupying special purpose buildings with variance permits or rezoning.
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