Contrary to earlier predictions, office leasing activity improved in the…
As our children head back to school at home, with parents by their sides, the commercial real estate market in Albuquerque continues to show signs of health!
The sector most greatly hit by the pandemic are our retail restaurants and boutique businesses.
Thankfully, beginning August 29, 2020 New Mexico restaurants will be able to re-open their indoor seating at a 25% capacity. That said, many Albuquerque restaurant owners have not been able to weather the storm and had to shutter their doors. Simultaneously, other entrepreneurs have decided now is the time to open their restaurant business!
How is this pandemic hitting the office and industrial markets?
There is still a significant demand for industrial space as buyers have gobbled up most viable properties in the market. Tenants are swimming in a sea of other industrial business owners with historically low vacancy rates – sub 4%.
The office market continues to flourish. Office sales are at an all-time high compliments of the low interest rates. Most Landlords continue to receive their rent payments while smaller tenants are leasing vacant space. Concessions continue on the same level as pre-pandemic while essential businesses are comfortable signing 5+ year leases. While some employees continue to work from home, others straddle the fence with a blended model.
All in all, the Albuquerque market is weathering this storm very well mid-way through 2020.