Record low vacancy rates continues due to high demand
Demand continued to outpace supply of industrial space in Q2, driving asking rates higher and vacancy rates lower once more. The new record-low vacancy rate in Albuquerque is 1.80%, after 183,742 SF of absorption during the quarter.
- The construction bubble has finally burst, with developers committing to build new, high quality industrial business parks across the city.
- Lumber costs, which were predicted to come down slightly, have instead remained inflated due to continued wildfires, supply chain disruptions and labor shortages.
- Continued upward pressure on construction costs is expected throughout the year, but the return on immediately leased space seems to be worth it for the many new projects happening across the city.