Q4 2019 Land and Industrial Market Review

Summary As 2019 wraps up, the industrial vacancy rate in Albuquerque is still hovering at or near its historic low. The market appears to have stabilized as new vacancies are coming to the market at roughly the same pace as existing vacancies are absorbed. A scenario in which the vacancy rate drops significantly below its current level is unlikely, especially as new construction is finally, albeit slowly, coming about. Median lease rates on a Triple Net (NNN) basis have jumped from $7.00 to $7.50 per square foot. This is a promising sign as increases in NNN lease rates will be the primary driver of new construction. Median lease rates on a modified gross basis remain steady, hovering within $0.10 of $9.00 per square foot. Click here to download your copy of the 2019 Q4 Market Report