Demand Outpacing Supply for Industrial Market throughout New Mexico
Demand for industrial warehouse, manufacturing, and distribution spaces is at an all-time high in the Albuquerque MSA, outpacing supply of the current inventory to such an extreme that it’s creating a frenzy of activity around any industrial property that comes to market. Whether for sale or for lease, industrial properties are seeing multiple offers above their market rates, and even spaces that were once considered Class C inventory are being occupied.
- High demand and low supply is creating a frenzy of activity around any industrial property that comes to market, creating competition among users.
- The vacancy rate fell to 1.29% during Q2, down a further 30 basis points from Q1, thanks to an overall positive absorption of approximately 220,307 SF.
- Speculative construction projects may ease some of the pressure on the large tenant industrial market, but tenants with smaller space needs are struggling to find and afford space due to the fierce competition.