Albuquerque Office Figures Q4 2025

The Albuquerque office market closed 2025 with modest fundamentals, following a year defined by uneven demand and concentrated corporate downsizing in the Downtown submarket. Leasing activity remained steady in the second half of the year, although absorption was negative. Active tenant industries included governmental, medical, and professional services users, with most activity concentrated in small- to mid-sized transactions.

The total vacancy rate increased slightly at year end, reflecting that market exits outpaced demand from occupier gains. However, the market remained bifurcated. Downtown vacancy stayed elevated as several large blocks remained unleased following major departures earlier in the year, while established suburban submarkets such as Uptown and North I‑25 demonstrated greater resiliency. Asking rents finished the year slightly lower year-over-year, as increased Class A supply put downward pressure on overall market rents. Construction activity remained stagnant, with no new office product delivered or underway for the second year in a row.