A lack of available space, high construction costs and high demand has caused the demand for office and warehouse space in Albuquerque to skyrocket, local developers say.
The boom is spurred by pent-up local demand, out-of-town interest and increases in several local industries, area real estate experts say.
Signs of increased growth
Area experts say market growth stalled between 2000 and 2010, causing many companies to leave the area. Some that stayed are growing while others are coming back.
In a recent survey, experts say:
- Call centers are buying and leasing a large amount of Albuquerque’s square footage.
- Construction costs for a new building are 20 percent higher than for an existing space.
- Virtually all the industrial warehouse space in Albuquerque has been leased.
- Local prosperity has fueled growth — nearly 25 percent of the available 13 million square feet of office space moved from one local company to another last year.
Local and out-of-town investment
The demand has come from out-of-state investors as well as from local expansion.
Streaming giant Netflix has purchased ABQ Studios in Albuquerque and plans to bring $1 billion in production to New Mexico in the next decade. The company received tax incentives and contributions from the city and state while promising to create 1,000 new jobs.
Local laser control manufacturer MZA more than tripled its footprint by moving in to a new facility that was on the market for less than a year. The firm contracts with the U.S. Department of Defense and employs nearly 100 physicists, electrical engineers and software designers earning between $80,000 and $200,000.