The New Mexico office of CBRE reported a 21.1 percent office vacancy rate in the Albuquerque area, up from 19.4 in the first quarter, signaling that the office vacancy rate continues to be flat as the halfway point of 2014 has come and gone.
Part of the reason for the slight increase, however, is Presbyterian Healthcare Services’ move from its longtime headquarters near the Sunport to new digs in North I-25. Although Presbyterian has moved into 195,000 square feet of space that it owns, it vacated about 324,000 square feet that it leased. Owner-occupied buildings are not counted in CBRE statistics.
Its former headquarters, known as the Albuquerque Office Complex, is being marketed by the investment team at Sperry Van Ness/Walt Arnold Commercial Brokerage. The team says the four-building complex has been getting interest.
Even so, CBRE office specialist Brent Tiano says the first six months of the year have been busy for him and colleague Marguerite Haverly. He said tenants are still looking for a “flight to quality,” a move to Class A space, and that there have been several lease transactions from about 3,000 to 10,000 square feet, including some sales.
The airport submarket has the highest office vacancy rate in the city at 43 percent, followed by Downtown at 28.8 percent and the Northeast Heights at 28.6 percent. The Far Northeast has the lowest office vacancy rate at 8.2 percent, followed by North I-25 at 12.2 percent.
By: Damon Scott (Albuquerque Business First)
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