Albuquerque’s Thriving Industrial Market & the Return of “See Broker” Pricing
The Industrial market continues to set records across the US in 2022, and Albuquerque is no exception. With a vacancy rate of only 1.79% across the Albuquerque MSA, the market is feeling the extreme conditions that come along with increasingly high demand, and increasingly low supply.
The first quarter had a positive absorption of 29,391 SF, showing that deals are continuing amid this historic crunch. Asking rates averaged at $11.80 per SF NNN—the highest on record since Colliers has been tracking industrial inventory in Albuquerque.
- Brokers are often quoting “See Broker” instead of marketing their listing prices. This is due to the high variability of rates being affected by supply chain issues, labor shortages, rising inflation, and the extra time needed to make construction and tenant improvement a reality.
- Investment demand is at an all-time high; industrial properties coming to market are already seeing multiple offers, and are often selling for above their list price.
- New construction projects are underway across the city, and more are coming. Until the demand for industrial spaces starts to decrease, new construction projects will remain popular.