— By Will Strong, Executive Vice Chair, Industrial Capital Markets, Cushman & Wakefield —
Albuquerque has emerged as a vibrant hub for industrial development, showcasing a thriving economy and a favorable business climate. With its strategic location, robust infrastructure and supportive policies, the city has become an attractive destination for ecommerce and logistics companies seeking growth and expansion.
Situated in the heart of the Southwest, Albuquerque enjoys a prime location that serves as a gateway to various markets. It is conveniently connected to major transportation networks, including interstates 25 and 40, making it accessible for shipping goods across the region. The city is served by the Albuquerque International Sunport, facilitating efficient
air freight and business travel. The market’s availability of reliable utilities, such as water, electricity and high-speed internet, further strengthens the city’s industrial ecosystem.
The Albuquerque industrial market grew more than 300,000 square feet in the past year. Demand has been strong enough to continually outpace deliveries, enabling vacancies to tighten below the historical average, according to CoStar. Vacancies have fallen to just 2.4 percent, well below the national average of 4.5 percent.
Albuquerque has a diversified base of industries, led by aerospace, high-tech manufacturing, distribution and logistics, technology and renewable energy. Netflix expanded its presence in the market and broke ground on a five-building expansion in the fourth quarter of 2024. It will include a 50,000-square-foot warehouse, a 120,000-square-foot office building, a post-production facility, 10 sound stages, dedicated space to construct sets and more.
Facebook also publicly confirmed its seventh and eighth buildings at its 4-million-square-foot Los Lunas data center, which are slated to be completed in October 2024. The new buildings are expected to have a positive impact on the economy for years to come. The largest industrial project currently under construction in Albuquerque is a 250,000-square-foot distribution facility at 3750 Prince Street SE. The building is expected to complete construction in the second quarter of 2023.
According to CoStar data, asking rents in Albuquerque rose 8.3 percent over the year to $11.52 per square foot. New inventory is expected to continue to increase asking rents in the region through the near term.
Albuquerque’s industrial market is witnessing a remarkable surge thanks to its strategic location, robust infrastructure, business-friendly policies and diversified sectors. As more companies recognize the city’s potential, Albuquerque continues to attract investment and fuel economic growth. With its favorable conditions and promising prospects, the future of the industrial market in Albuquerque looks exceedingly bright, solidifying its position as a leading industrial destination in the Southwest.