Construction employment jumped 12% from last year
The extremely tight Albuquerque industrial market has seen a crushing 2021, with large jumps in asking rental rates and a new record low vacancy rate each quarter. Q4 was no different, with the vacancy rate dropping further to 1.76%, and a positive absorption of about 11,600 SF. Average asking rates across industrial product averaged $9.34 NNN. R&D spaces continue to skew the average rates upward, with vacancy in R&D having a higher asking rate and a higher vacancy rate.
- Satellite company Theia Group had committed to build the Orion Center project near the Albuquerque International Sunport. The campus would have added millions of square feet of R&D Flex space to the industrial inventory. During the fourth quarter, the project collapsed in its entirety, terminating leases and losing access to its other temporary facilities for failure to pay rent.
- The completion of the Amazon fulfillment center increased the total industrial inventory by 2.58 million square feet, and contributed to a 10 basis point drop in the overall vacancy.
- New construction continues despite high building costs thanks to high demand and record breaking low supply. Many of these projects are fully leased before completion.