Albuquerque Office Figures Q1 2026

The Albuquerque office market entered 2026 in a period of quiet stabilization, marked by cautious tenant decision-making and modest improvement in underlying activity following a prolonged lull. The overall vacancy rate increased to 13.3% in Q1 2026, a 30-basis-point increase quarter over quarter, reflecting ongoing space give-backs tied primarily to tenant right-sizing rather than widespread market exits. Leasing activity remained restrained but durable, with net absorption totaling approximately 33,000 sq. ft. of negative absorption, a notable improvement from Q4 2025. Class A space recorded positive absorption, reinforcing a preference for higher-quality space, while Class B and C assets experienced net declines as occupiers consolidated into more efficient or better-located properties.

Market performance continued to diverge by location. North I-25, Uptown, and West Mesa outperformed, supported by consistent leasing activity. Downtown vacancy remained elevated at 23.5%, reflecting challenges associated with large-format availability and slower backfill. Asking rents softened modestly in Q1 2026, with average direct asking rent declining to $20.81 per sq. ft. FSG, down slightly from both the prior quarter and year earlier.