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Q4 2019 Albuquerque Retail Market Report

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Holiday Spending Increase Fuels the Market

The vacancy rate in the retail market fell by 53 basis points to 6.78% during the final quarter of 2019. Availability also fell to 6.72%, with over 126,000 square feet absorbed across the market. Average rental asking rates came to $14.73 NNN.

The holiday spending grew of 4.1% over 2018 according to the National Retail Federation. It was a healthy holiday season, with strong employment numbers driving spending.

Online sales hit a record high during the holidays, rising 14% over 2018’s numbers and comprising nearly $167.8 billion in revenue.

The end of 2019 saw the vacancy rate of shopping centers in the US climb to the highest level in at least two decades, according to Reis Moody. This vacancy trend coincides with an interesting reversal for former retail giants and online only stores. Over the course of 2019, stores with online only presences began opening physical stores, while stores with traditionally large brick and mortar options have increased their online presence and closed many, if not all, of their locations. While overall consumer spending levels are expected to remain steady in 2020, many mall operators are bracing for more closures of physical stores that are unable to capture a part of the online market.

 

 

Key factors this quarter

  • Holiday spending increased 4.1% over 2018 with online sales hitting a record high with 14% growth over last year.

  • The largest absorption of the year was at Coronado Mall where 75,000 square feet was occupied by Furniture City.

  • The fourth quarter of 2019 ended with a positive absorption of over 126,000, which brought the vacancy rate down by half a percent.

 


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Q4 2019 Albuquerque Retail Market Report

Download Report