Albuquerque Industrial Figures Q2 2026

The Albuquerque industrial market moderated during Q2 2026 after a strong start to the year. Net absorption totaled negative 93,000 sq. ft. during the quarter, a reversal from the 440,000 sq. ft. absorbed in Q1 2026. Despite the quarterly slowdown, year-to-date net absorption remained positive at 347,000 sq. ft., indicating that occupier demand has continued to support market fundamentals through the first half of 2026. Vacancy increased to 3.6%, up 20 basis points (bps) from 3.4% in Q1 2026 but remained well below the 4.4% recorded one year ago. Average direct asking rents reached $11.10 per sq. ft. NNN, increasing 4.3% quarter-over-quarter and 4.4% year-over-year, as limited vacancy continued to support landlord pricing power.

Leasing activity moderated during the second quarter following a strong start to the year, contributing to a slower pace of market growth. Despite softer demand, fundamentals remained healthy and continued to compare favorably with historical trends. Vacancy remained low, asking rents continued to increase, and tenants seeking quality industrial space faced limited options in many areas of the market. While economic uncertainty and evolving occupier requirements influenced some leasing decisions during the quarter, the market remained well-positioned due to its supply-constrained environment and stable demand base.