Albuquerque Industrial Figures Q1 2025

The Albuquerque industrial market continued to face headwinds in Q1 2025. However, increased lease activity characterized the period, rising by 180% year-over-year to a total of 777,035 sq. ft. This surge was largely driven by Maxeon Solar Technologies leasing 505,388 sq. ft. in the North I-25 submarket. Despite this growth, the total vacancy rate continued to increase gradually for the seventh consecutive quarter, rising by 30 basis points (bps) quarter-over-quarter and by 70 basis points year-over-year to 3.6%. Delayed leasing decisions and a slowdown in leasing activity in prior quarters hindered occupancy gains in Q1 2025, resulting in 82,602 sq. ft. of negative net absorption, a decline from the positive occupancy gains observed in Q4 2024 and during the same period the previous year.

The average direct asking rent continued to rise in Q1 2025, increasing by 8.2% quarter-over-quarter and by 4.2% year-over-year, reaching $10.67 per sq. ft. Meanwhile, the construction pipeline continued to expand over the previous 12 months. By the end of Q1 2025, the total sq. ft. under construction had more than doubled year-over-year, with eight projects underway. Additionally, the market witnessed the completion of two new industrial properties in Q1 2025, including the 16,640 sq. ft. Duke City Sports Complex, which was 100% pre-committed.