Huge industrial complex coming to West Side
Fully leased, project could create up to 500 jobs
Amid a historically tight market for industrial space, Goodman Realty Group is spearheading a massive industrial complex on Albuquerque’s far West Side.
Company Vice President Scott Goodman told the Journal that the complex will include three buildings totaling nearly 400,000 square feet at the corner of Central Avenue and 118th Street. The project is expected to break ground near the beginning of 2022, and will take six to eight months to complete.
The project doesn’t have tenants lined up yet, but Goodman said the space could accommodate a mix of uses, from national companies looking to add a distribution hub in Albuquerque to movie studios looking for production space.
“That’s really big, there’s very little sound stage (space) available in the United States,” Goodman said.
The market for industrial space in Albuquerque was tight even before the COVID-19 pandemic began. Goodman said the pandemic heated up competition for industrial properties even more, as large companies shifted toward e-commerce.
A market report from CBRE showed that the vacancy rate for industrial space in Albuquerque was just 2.5% at the end of 2020, and the average lease rate rose 10.4% year-over-year.
“You’re seeing a lot more demand than supply, and we’re out of equilibrium right now,” Goodman said.
Goodman added that the tight market has discouraged some companies from moving to Albuquerque.
“If you want to come and lease 100,000 (square) feet, it’s not really available,” he said.
Initial plans call for three warehouses: a 128,000 square-foot building, a subdivided 117,000-square-foot building and a 150,000-square-foot facility.
Goodman said the new complex will look to attract national companies that have a significant retail footprint in
Albuquerque but lack a distribution hub in the state. Goodman named Albertsons, Sprouts Farmers Market and Discount Tire as large retailers that could benefit from having a local distribution center rather than trucking in products from neighboring states.
“Now that Albuquerque is growing, it makes sense to have a central distribution facility,” he said.
Additionally, Goodman said the complex could be a fit for local companies looking to increase their Albuquerque footprint. He pointed to Dion’s Pizza, which announced plans to relocate its commissary to a larger building in northeast Albuquerque earlier this year.
Goodman added that his company has had talks with large movie studios about potentially building one of the warehouses to suit the needs of the film industry, with higher ceilings and modified HVAC and electrical systems.
Fully leased, Goodman said the complex could create up to 500 warehouse, management and trucking jobs. The buildings will have modern amenities, including abundant yard space and docking capacity, that could help the market attract companies operating in nearby markets.
“We want to compete with industrial buildings in Phoenix and Dallas,” he said.