Good news during industry changes - ALBUQUERQUE | RETAIL - Colliers International
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Research Report
RETAIL
ALBUQUERQUE | RETAIL
ALBUQUERQUE
Q2 2020 – SANTA FE
Q2 2020
Good news during industry changes
It’s no secret that the retail industry is facing challenges amid the
COVID-19 global pandemic. Albuquerque’s retail market has begun
to see the impact of extended retail closures over the course of Key factors in this quarter
the second quarter. Amidst announcements of both national and > National and local retailer closures are beginning to
local closures, some retailers are finding success, particularly impact Albuquerque’s vacancy rate. The second quarter
with grocery and takeout concepts. ended with a negative absorption of 46,100 square feet.
National chain and local restaurants are feeling the pressure to > Despite COVID-19 restrictions on retailer operations,
adapt their model, as they have been restricted from offering dine-in some retailers are experiencing increased year-over-
services by the Governor’s public health orders. According to the year sales, specifically grocery and takeout concepts.
New Mexico Restaurant Association, at least 200 restaurants have > The largest positive absorption of the year was just
already shuttered their doors for good. Most of the closures were over 30,000 square feet, which was occupied by New
local family-owned or small businesses. Beginnings Church at Fiesta Crossing shopping center
located at 4770 Montgomery Blvd. NE.
Major retailers including Macy’s, The Children’s Place, Victoria
Secret, Bath & Body Works, Sweet Tomatoes and others are
announcing major store closures, and stores like JC Penney,
Pier 1 Imports, Tuesday Morning and GNC are filing for bankruptcy
protection and restructuring. These national closures will impact Albuquerque market summary
Albuquerque, which has two Pier 1 Imports and two Sweet Total SF................................................... 32,072,687
Tomatoes location that will close.
Total Available SF.................................................. 2,158,843
Local retailer closures include La Montanita Co-op’s Cottonwood Availability %................................................................6.73%
location at 3601 Old Airport Ave. NW, The Cooperage at 7220 Change in Available SF.............................................. 90,049
Lomas Blvd. NE, Garcia’s Kitchen at 1113 4th St. SW and Le Peep’s
last remaining location in the Uptown submarket at 2125 Louisiana Total Vacant SF......................................... 2,247,456
Blvd. NE. The Cooperage and Le Peep both sight COVID-19 as Vacancy %....................................................... 7.01%
the reason behind their closures. The GNC at Cottonwood Mall, Q1 2020 Vacant %...................................................... 6.86%
10000 Coors Bypass NW, will close as part of its bankruptcy
Absorption................................................... (46,100)
restructuring. Pep Boys has ended the retail side of its business
in Albuquerque, but will stay open as a service and tire center.
Asking Rent................................................................. $13.75
Despite the struggles faced by indoor dining, malls, apparel and Year-over-year Vacancy Change.................. 31 basis points
other indoor retailers, some retailers have seen increased sales.
Fast casual and takeout restaurant concepts, though initially
seeing a drop in sales, have recovered and even surpassed
typical sales. Quick service restaurants
with a strong takeout model in place
Albuquerque vacancy by submarket
have been protected from severe West Mesa
Uptown
declines in sales. Wingstop reported 1%
7% Cottonwood
an increase in same-store sales of University
18%
8.9% during the last two weeks of 4%
March, when closures began. It has
also continued to open new locations
across the nation. Domino’s reported Southeast Heights 14% 4% Downtown
a sales increase of 16% for the second
quarter and Papa John’s saw sales
increase by 33.5% in May. 13% Far Northeast Heights
South Valley 8%
Grocery and other big box retailers have
also seen increases in sales. Costco
Wholesale reported a sales increase of 4%
Rio Rancho 13%
7.5% year-over-year in May, as well as 11%
an increase of over 100% for e-commerce Northeast Heights
North I-25
sales. Overall sales were up 9% year- North Valley
over-year for Walmart, with e-commerce 2%
sales increasing by nearly 75%.
In Albuquerque, the second quarter of Albuquerque vacancy by use
2020 saw a negative net absorption of
46,100 square feet. The largest negative
Urban Retail
absorption being roughly 12,000 square Community Center
feet vacated by The Cooperage, followed Super Regional 4% 9%
by 10,500 square feet vacated by Golden 9%
Corral at 2701 Coors Blvd. NW. Freestanding
12%
The largest positive absorption of
the quarter was a non-traditional
retail tenant. New Beginnings Church Specialty
Strip 23% 0%
occupied just over 30,000 square feet
at Fiesta Crossings Shopping Center
located at 4770 Montgomery Blvd. NE.
Another noteworthy opening was the
grand opening of Tin Can Alley, a newly Showroom 5%
2% 37%
completed storage container development, Power
Neighborhood
which features a food hall and taproom.
The 11,000 square foot development
includes a 6,000 square foot Santa Fe
Brewing taproom. Adjacent to the project,
a 26,500 square foot Stoneage Climbing
Gym is nearing completion.
A national report conducted by Coresight
Research suggests that 25,000 retailers
could close this year across the U.S.
due to the ongoing ramifications from
COVID-19. However, this is also an
opportunity for retailers to switch their
models in order to better reach their
consumers. Despite closing a third of its
locations temporarily, Game Stop experi-
enced an e-commerce sales increase of
over 1,400% year-over-year in May. New Beginnings Church at Fiesta Crossings Shopping Center
2 Albuquerque Research Report | Q2 2020 | Retail | Colliers International
Historical vacancies
12%
10%
8%
6%
4%
2%
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Santa Fe Brewing Company
Market statistics by use
Albuquerque – Retail
PRIMARY USE TOTAL SF AVAILABLE SF VACANCY AVAILABLE % VACANCY % ABSORPTION RENT Q2 2020
Community Center 2,258,533 151,122 210,050 6.69% 9.30% - $11.28
Freestanding 10,308,923 251,119 258,875 2.44% 2.51% (30,614) $14.81
Neighborhood 6,125,696 800,987 835,250 13.08% 13.64% 6,202 $13.94
Power 1,859,294 150,140 104,991 8.08% 5.65% - $13.00
Showroom 1,824,052 42,000 42,000 2.30% 2.30% - NA
Specialty 32,756 - - 0.00% 0.00% - NA
Strip 7,182,044 495,207 518,631 6.90% 7.22% (18,202) $13.64
Super Regional 2,190,336 193,378 193,378 8.83% 8.83% (565) NA
Urban Retail 291,053 74,890 84,281 25.73% 28.96% (2,921) $13.41
Total 32,072,687 2,158,843 2,247,456 6.73% 7.01% (46,100) $13.75
Market statistics by submarket
Albuquerque – Retail
SUBMARKET TOTAL SF AVAILABLE SF VACANCY AVAILABLE % VACANCY % ABSORPTION RENT Q2 2020
Cottonwood 4,188,699 385,402 402,710 9.20% 9.61% (10,610) $13.59
Downtown 748,181 87,699 97,090 11.72% 12.98% (2,921) $14.83
Far Northeast Heights 4,023,458 327,442 291,995 8.14% 7.26% (3,526) $17.52
North I-25 4,039,015 234,299 276,209 5.80% 6.84% 14,812 $12.14
North Valley 1,203,533 37,612 37,612 3.13% 3.13% 1,732 $15.45
Northeast Heights 4,528,787 251,870 254,136 5.56% 5.61% (10,474) $12.07
Rio Rancho 2,407,397 138,897 93,203 5.77% 3.87% (4,496) $14.74
South Valley 1,368,241 172,748 189,140 12.63% 13.82% 2,000 $12.10
Southeast Heights 3,182,819 207,565 312,169 6.52% 9.81% (9,556) $12.70
University 1,239,831 94,444 94,444 7.62% 7.62% - $11.17
Uptown 2,542,119 31,236 32,075 1.23% 1.26% (2,500) $32.50
West Mesa 2,600,607 189,629 166,673 7.29% 6.41% (20,561) $13.77
Total 32,072,687 2,158,843 2,247,456 6.73% 7.01% (46,100) $13.75
* Retail inventory includes all multi-tenant and single tenant buildings at least 10,000 square feet. Available space includes all vacant space and occupied space currently on the market for lease.
“Change in Availability” is based on the change of availability from beginning of quarter to the end. “Absorption” is based on the change of vacancy from the beginning of the quarter to the end.
Copyright © 2020 Colliers International.
3 Albuquerque Research Report | Q2 2020 | Retail | Colliers International
Albuquerque submarket area map
FOR MORE INFORMATION
Scott Whitefield
Managing Director | Albuquerque
+1 505 880 7055
scott.whitefield@colliers.com
Sarah Baiett
Director of Marketing & Research
Albuquerque
+1 505 880 7012
sarah.baiett@colliers.com
Sean Hewlett
Research Analyst | Albuquerque
+1 505 880 7004
sean.hewlett@colliers.com
Colliers International | Albuquerque
5051 Journal Center NE
Suite 200
+1 505 883 7676
Copyright ©2019 Colliers International.
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every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No
responsibility is assumed for any inaccuracies. Readers are encouraged to consult their
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