The retail sector in Albuquerque, New Mexico has gone through some turbulence with some key fundamentals, but some improvement is expected in the short-term, a fourth quarter and full year 2024 report from Colliers finds.

For one absorption was negative at the end of the year at -123,400, with the vacancy rate inching up to 6.39 percent in the last three months of the year, mostly due to a "turnover in anchor space." But many of those spaces are leased or are being built specifically for future tenants, according to Colliers. Vacancies were the highest in the Southeast Heights submarket, at 15.36 percent. Downtown and the University submarkets were the next highest, with 11.74 percent and 10.58 percent, respectively. More specifically, urban and neighborhood retail accounted for about a third of overall vacancy.

Asking rates averaged $15.49 per square foot. However, Colliers refers to the figure as "artificially deflated by low availability amongst premium retail spaces, which command much higher lease rates, whereas a large sector of market vacancy is comprised of functionally obsolete space."