Albuquerque Office Market Stable

ALBUQUERQUE, NM-The 10.88 million -sf Albuquerque office market, lessthan half the size of Denver’s CBD, shows an overall vacancy rate of 13.1%,according to a end-of-the-year report by Grubb & Ellis. Albuquerque’s CBD’s vacancy rate stood at 13.8% and it absorbed 68,000 sf.

The suburban office market, with 8.2 million sf, showed negative absorption of 44,000 sf and a vacancy rate of 12.9%.

Few companies moved out of the city in 2001, but many tightened their belts, creating sublease space within their buildings, the report says.

”The 2002 marketplace is shifting toward a tenant’s market and renters can expect more landlord concessions,” Grubb & Ellis notes. ”In general, office vacancy rates are expected to rise slightly in 2002.”

Albuquerque’s economy will continue to be energized in 2002 by two companies — Intel, which is continuing its $2 billion expansion on the west side and Eclipse Aviation.

Eclipse Aviation is manufacturing the Eclipse 500, a six-seat, twin-engine jet that sells for less than $1 million and will begin delivering them in 2004, the report notes.