Albuquerque Office Figures Q2 2026

The Albuquerque office market gained momentum in Q2 2026, supported by positive absorption and improved occupancy within several larger blocks of space. The overall vacancy rate declined to 12.9%, a 50-basis-point decrease quarter-over-quarter and 10 basis points below the rate recorded one year earlier. The improvement was largely attributable to occupancy gains within the Class A inventory, particularly in Mesa del Sol, where the New Mexico Environment Department occupied space previously vacated by Fidelity in late 2025. Tenants continued to prioritize high-quality space despite ongoing economic uncertainty. Demand remained concentrated in well-located Class A and upper-tier Class B assets, where available move-in-ready options remain limited.

Market performance continued to diverge by location. Mesa del Sol led all submarkets in absorption, while Downtown maintained the highest vacancy rate at 23.6%, reflecting the continued presence of large blocks of available space. Asking rents increased modestly during the quarter, with the average direct asking rent rising to $20.93 per sq. ft. FSG, up slightly from both the prior quarter and year earlier.