Albuquerque’s industrial real estate market continues to improve, as occupancy climbs and rents remain steady.
A new report by CBRE New Mexico shows Albuquerque’s industrial buildings and warehouses experienced positive absorption for the 11th quarter in a row. Year-to-date net absorption hit nearly 400,000 square feet, the highest amount of first half activity recorded in any year since 2007, the report said.
In the first two quarters of the year, businesses moved into nearly 900,000 square feet of Albuquerque’s industrial spaces. The report said this year’s first half overall activity is the highest amount the market has seen in eight years. The report credited warehouse and distribution centers as industries that caused the most activity.
Two big moves were seen in the South Valley and in Mesa Del Sol. GandyDance Railroad and Excavating Services bought two buildings at 5801 Bobby Foster Rd. SE and United Poly Systems occupied 60,007 square feet of space at the former Schott Solar building.
Despite the industrial market’s positive activity, few new warehouses and manufacturing facilities are being built.
“The Albuquerque market lacks sustainable lease rate growth. Therefore, despite strong demand, build-to- suit developments remain weak, and the market has not seen speculative construction for years,” the report said.
By: Stephanie Guzman, Reporter-Albuquerque Business First