Unprecedented growth and demand for space
The first quarter of 2021 continued the strong activity from 2020, with a record-low vacancy rate of 1.96% and overall absorption of 198,524 SF. Asking rates for industrial space remains high, averaging at $7.63 NNN. The high asking rates are due to multiple factors, including the lack of available high-end spaces driving prices up, and the cost of lumber driving up costs of new construction.
Key factors this quarter
- While other market areas are beginning the path to recovery from the 2020 Coronavirus pandemic, the industrial market has seen unprecedented demand and growth.
- Ben E. Keith opened its new 275,000 square foot distribution center at the end of the quarter after a year and a half of construction.
- Dion’s has purchased the former It’Z entertainment center at 4595 San Mateo Blvd NE to create a flagship headquarters for its successful New Mexico chain.