The overall industrial vacancy rate is 5.2%, while R&D/flex space is only at 3.2%. Standard industrial buildings show a 6.5% vacancy rate.
The market, which is benefiting from brisk sales, needs more supply. Developers are responding with 360,000 sf under construction, Grubb & Ellis notes.
Albuquerque is small, but growth is fueled by some of the nation's top scientists at the Sandia National Labs.
Much of the industrial activity southeast of the city is taking place at the 217-acre Sandia Science and Technology Park, adjacent to the Sandia National Labs.
"Tenants have easy access to world-class facilities and technologies, as well as a good supply of scientists and engineers," according to Grubb & Ellis. "In light of the current world situation, research and development activity is expected to remain strong."
Future opportunities for industrial growth will take place at Mesa Del Sol, a master-planned community on 12,400 acres on state trust land, the report says. Mea Del Sol will offer 1,500 acres zoned for industrial development. Final approval for the master plan is expected next year, the report notes.
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