Q4 2019 Office/Healthcare Market Report

Summary Office rental rates continue to be strong during the 3rd and 4th quarters of 2019, with lease rates averaging $17.92 per square foot. Average vacancy rates are 17.2%, with high demand locations experiencing rates as low as 14%. While Albuquerque unemployment continues to mirror the national trend falling well below 5%, the skilled labor market has reached a level beyond full employment which could potentially trigger inflation. This labor trend and the significant increase in material costs are escalating the price of tenant improvements and building ownership. In a report by Inc.com, Albuquerque ranked in the top 50 for best U.S. cities for starting a business in 2020. Albuquerque ranked number 12 in Rate of Entrepreneurship, number 19 in Net Business Creation, and number 29 in Wage Growth. The Albuquerque market continues to show positive demand with the following key transactions: Faneuil Inc., a Virginia based Contact Center, signed a 10-year lease that will bring 500 initial jobs and plans to add 200 more jobs within two years. IT consulting company, ANM, moved into their 40,000 square foot building, tripling their previous size. Nusenda Credit Union has started occupying their 60,000 square foot building. The Indian Pueblo Cultural Center announced that it would construct a 130,000 square foot Class A office property in 2020. To download the full Market Report, click here