Southwest Region Q3 Perspective

Albuquerque’s office vacancy rate has remained relatively stable in the past year, even as office vacancies have soared across other parts of the country. Office demand in Albuquerque often comes from smaller tenants. Albuquerque is regarded as a smooth and steady industrial market where supply pressure is largely not a concern. Except for a handful of large build-to-suits, Albuquerque’s supply pipeline in the last decade has been minimal. The retail market remains in a position of strength due to an exceptionally low vacancy rate, limited new construction, and a resilient consumer base. Apartment demand continues to pull back in the Albuquerque market.