Office market continuing along toward recovery
The vacancy rate in Albuquerque’s office market fell to 15.00% during Q2 of 2021, down from 16.02% last quarter and lower than pre-pandemic rates. Combined with the quarter’s net positive absorption of 22,479 SF, the vacancy rate points towards the start of office market recovery from the slowdown caused by the pandemic. Rental rates remained steady for the quarter, averaging $19.26 per square foot full service.
Key Factors in this Quarter
The Albuquerque market has proven to be particularly resilient in comparison with larger city centers, and short-term renewals kept many leasing relationships in place over the past year.
Longer lease terms are beginning to normalize again, but more tenants are requesting early termination clauses in the event of additional complications from the pandemic.
Sublease activity has seen an increase in 2021 over previous years.