Albuquerque's metro area presented different rates on their real estate during the second quarter.
The market for industrial space hasn't moved that much with vacancy rate of 7.1%, not too far from the first quarter's 7.9%. Despite of the large, cash and out of the state investor, office space market remained steady on its low bracket rate 20.1% down from first quarter's 201.5%. The office market has been consistently on a low rate for five years with an average of 20.2%. However, retails spaces have been the lowest with only 6.3% in the second quarter.
The current low vacancy rate in retailers is due to the retailers' efforts to keep up with the consumers' changing trends. Spaces that have 20,000 square feet or larger are becoming scarce because of its consistent demand throughout the previous years.
According to a report by commercial real estate services firm, Colliers International, "some old strip centers are beginning to see a small increase in activity. The increase is being driven by nontraditional retail users, such as medical, dental and even office users discovering values in retail centers."
The current industrial space rate is almost as similar to the rates of 2008 when recession is being experienced throughout the country. On the other hand, sales for office spaces experienced a raise as five properties has been sold and three of these were called "owners" or "users" which is favored by banks.
The largest sale was the all- cash purchase of an Albuquerque Office Complex that has a size of 348,005 square feet by a California- based Orton Development. The complex was also known as the former headquarters of Presbyterian Healthcare Services. Orton partner Gregg Herbert said that "this purchase validates our belief in the local market. We're a market maker. We're very design- and construction-oriented. This gives us the opportunity to rebirth some very good real estate. It's really a value play."
