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CBRE report: Why Albuquerque poses an opportunity for businesses seeking expansion or relocation

CBRE has proudly partnered with the Albuquerque Regional Economic Alliance for the past five years to highlight the top reasons why businesses should consider locating or expanding in the Greater Albuquerque region. The Greater Albuquerque Talent and Industry Profile, a joint report, provides a comprehensive overview of the numerous opportunities available in the area, including a highly skilled workforce, a low cost of doing business, an excellent quality of life, local and state incentives, and a strong emphasis on educating the future workforce. These advantages, combined with a solid understanding of commercial real estate trends, can help new companies navigate market dynamics, recruit talent, and relocate top employees to the area. Across various property types, there are many positive market indicators worth considering. Office In recent years, the federal government has vacated large blocks of space in quality buildings throughout the Albuquerque area. This release of real estate has introduced over 200,000 square feet of new high-quality B+ and A-Class office space. Since office development in Albuquerque has softened since 2007, this new influx of office product resembles a wave of new development, prompting some existing tenants to explore their options. As a result, many tenants are not merely 'right-sizing' but are instead 'right-locating,' seeking sites that support the return of their workforce to the office while also aiding in the recruitment of new employees. Industrial As the industrial market navigates the current market complexities, it has become increasingly clear that New Mexico must be proactive and prioritize site readiness to capitalize on the strong demand for industrial space driven by onshoring, reshoring and interest in tertiary markets. Considering that there is very little available industrial inventory (nearly 4% vacancy rate), New Mexico must invest in making sites 'shovel-ready' to take full advantage of leasing momentum. This includes preparing land with essential utilities, transportation access, and creating an atmosphere that encourages swift development. By prioritizing site readiness initiatives, the state can position itself as a hub for logistics, manufacturing, and renewable energy sectors. Land The land market in New Mexico remains stable, with consistent activity and interest from large national companies and local businesses and developers looking for growth opportunities. Interest in specific product types has shifted in recent years, but overall velocity in the land market remains strong due to market incentives and the availability of large land tracts near the metropolitan area. However, the lack of development-ready sites with access to existing infrastructure continues to be an obstacle that needs to be addressed to ensure continued growth in the market. Like many areas across the county, significant activity is occurring in site selection for data centers and renewable energy production. This trend is driven by the increasing demand for technology and the recent explosion in AI. Data center sites are significantly influenced by their proximity to power availability — both existing and future — and the availability of large land sites, typically 100-plus acres. Additionally, renewable energy development remains robust, with multiple sites spanning several thousand acres under construction in the state and dozens more under contract for purchase. We anticipate that interest in data center and renewable energy sites will continue to grow in the future. Capital markets The investment market in Albuquerque is showing signs of recovery in 2025, following a slow 2024. Interest rate volatility and tariff concerns previously kept investors on the sidelines, but clarity on these issues has now drawn them back in. Transaction volumes are increasing, and investors are seizing opportunities in industrial, office, and retail properties, particularly those with potential for value-add upgrades. Regarding capital availability, numerous sources of debt are accessible for virtually every project seeking funding in today's environment. However, despite the abundance of capital, interest rates remain higher than in recent years, resulting in lower loan amounts to maintain the lender required 1.25X debt service coverage level. As the impact of tariffs becomes clearer and the timing of interest rate cuts emerges, a substantial number of investors are poised to enter the market as there is more 'dry powder' on the sidelines than ever before in history. In summary, the Greater Albuquerque region stands out as a vibrant and promising environment for businesses seeking expansion or relocation. With the right resources and support from partnerships like that of CBRE and the Albuquerque Regional Economic Alliance, companies can thrive in this dynamic market, paving the way for sustained economic growth and success in the years ahead. To review the Greater Albuquerque Talent and Industry Profile, please visit CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate and investment firm (based on 2024 revenue). To learn more, visit . The following authors contributed to this article: