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Q3 2021 Albuquerque Industrial market report

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Q3 Industrial 2021_1536x1040

Construction continues with market at less than 2% vacancy

Industrial saw yet another quarter with positive absorption gains, ending the quarter with a total of 78,276 square feet absorbed, due primarily to several 15,000–20,000 square foot leases. The positive absorption, continued record-low vacancy and increase in asking rates has led to a perfect storm of development and construction that Albuquerque has been waiting on for a long time.

 

Key Takeaways

  • The industrial market saw additional positive absorption thanks to several leases between 15,000 and 20,000 square feet, keeping the market below 2% vacancy.
  • Speculative construction projects have kicked off with a total of 5.4 million square feet of construction, 2.58 million of which will enter the industrial inventory with the completion of Amazon’s fulfillment center in the fourth quarter.
  • Rates continue to rise with a disproportionately high amount of R&D Flex space in the market’s available inventory, however rental rates are likely to stay high as speculative construction projects are marketing rates starting at $9.00 per square foot triple net.

Q3 Industrial 2021_1024x972

Q3 2021 Albuquerque Industrial market report

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