CBRE

FIGURESIALBUQUERQUEOFFICEIQ42025

fundamentalsintop-of-marketproduct

13.7%v(76,508)oov$20.90

vacancyRateSFNetAbsorptionSFconstructionDeliveredSFunderconstructionFSG/YRDirectLeaseRate

Note:Arrowsindicatechangefrompreviousquarter.

FIGURE1:HistoricalAbsorption(SF),Deliveries(SF),andvacancy(%)

(SF)

(%)

TheAlbuquerqueofficemarketclosed2025withmodestfundamentals,followingayeardefinedbyunevendemandandconcentratedcorporatedownsizingintheDowntownsubmarket.

Leasingactivityremainedsteadyinthesecondhalfoftheyear,althoughabsorptionwas

negative.Activetenantindustriesincludedgovernmental,medical,andprofessionalservicesusers,withmostactivityconcentratedinsmalltomidsizedtransactions.

Thetotalvacancyrateincreasedslightlyatyearend,reflectingthatmarketexitsoutpaced

demandfromoccupiergains.However,themarketremainedbifurcated.Downtownvacancy

stayedelevatedasseverallargeblocksremainedunleasedfollowingmajordeparturesearlierintheyear,whileestablishedsuburbansubmarketssuchasuptownandNorthI-25demonstratedgreaterresiliency.Askingrentsfinishedtheyearslightlyloweryear-over-year,asincreased

500,000400,000300,000

200,000

14.0

12.0

MARKETOVERVIEW

2.0

(200,000)

(300,000)

classAsupplyputdownwardpressureonoverallmarketrents.constructionactivityremainedstagnant,withnonewofficeproductdeliveredorunderwayforthesecondyearinarow.

NetAbsorption(SF)Deliveries(SF)vacancyRate(%)source:CBREResearch,Q42025

FIGURES|ALBUQUERQUEOFFICE|Q42025

2CBRERESEARCH?2026CBRE,INC.

vacancy

Theoverallvacancyrateheldsteadyyear-over-yearat13.7%,reflectingmodestnetabsorptionlossescombinedwithanotheryearoflimitednewsupply.whilevacancyhastrendedupwardsince2023,thebroaderfive-yearviewshowsmeaningfulimprovement,downfrom16.5%at

year-end2020.performancecontinuedtovarysignificantlyacrossbothsubmarketsandassetclasses.

DowntownandclassAvacancyremainedtheprimarydragonmarket-widemetrics.Large

vacanciescreatedbycorporatedownsizinginearly2025continuedtoweighonoverall

performance,withlimitedbackfillactivitybyyear-end.Incontrast,Northl-25anduptown

maintainedcomparativelystablevacancyrates,supportedbyconsistentleasingvelocityandreducedexposuretolargesingle-tenantoccupancies.

AskingRent

TheoverallaveragedirectaskingrentwaslargelyflatthroughQ42025,endingtheyearat

approximatelythesamelevelobservedinmidyear.pricingstabilityreflectedabalance

betweenlandlorddisciplineandpersistentvacancypressures,particularlywithintheclassA

segment.whileaskingratessawlittlemovement,effectiverentswereinfluencedbyincreasedconcessionpackages.Northl25anduptownremainedthestrongestpricingsubmarkets,whileDowntownrentscontinuedtotrailmarketaverages.

FIGURE2:vacancyRates(%)byclass

source:CBREResearch,Q42025

FIGURE3:Avg.DirectAskingRate($/SF/yrFSG)byclass

source:CBREResearch,Q42025

FIGURES|ALBUQUERQUEOFFICE|Q42025

3CBRERESEARCH?2026CBRE,INC.

NetAbsorption

TheAlbuquerqueofficemarketrecordednegativenetabsorptionof76,508sq.ftinQ42025,

drivenexclusivelybyclassAactivity.Netabsorptionforallof2025remainednegative,thoughthepaceoflossesslowedinthesecondhalfoftheyear.class-levelperformancewasmixed.

classAspacecontinuedtofaceoffsettingpressuresfromelevatedvacancyandselective

leaseup,whileclassBassetsbenefittedfromcomparativelystabledemandtiedtoaffordabilityandfunctionallayouts.classcperformanceremaineduneven,reflectingongoingtenant

upgradesintonewerorbetterlocatedproperties.submarkettrendsreinforcedthisdivergence,assomesubmarketsrecordednetgainsoverthesecondhalfoftheyear,whileDowntown

continuedtoexperiencenetoccupancylossestiedtopreviouslyannouncedcorporateexitsthatprecededleasingmomentumelsewhereinthemarket.

constructionActivity

officeconstructionactivityremainedinactivethroughout2025.Nonewprojectsdelivered

duringtheyear,andnoofficepropertieswereunderconstructionbyyearend.Thisextendedpauseindevelopmentcontinuedtolimitnewsupplyadditionsandhelpedpreventfurther

vacancy.Theabsenceofnewdevelopmentpositionedthemarkettograduallyabsorbexistingvacancyasdemandstabilized,thoughrecoverywasexpectedtoremaingradualgiventhe

volumeofavailablespacecarriedforwardinto2026.

FIGURE4:NetAbsorptionTrend(SF)

source:CBREResearch,Q42025

FIGURE5:constructionActivity(SF)

source:CBREResearch,Q42025

FIGURES|ALBUQUERQUEOFFICE|Q42025

4CBRERESEARCH?2026CBRE,INC.

LeasingActivity

Leasingactivitythroughout2025slowedfrompostpandemichighs,withQ42025volume

remainingbelowhistoricalquarterlyaverages.Despiteloweraggregatevolume,tenantactivityshowedsignsofdurability,withnewleasesandexpansionsaccountingforthemajorityof

squarefootagesignedduringtheyear.Transactionsizesskewedsmall,andactivityremainedheavilyweightedtowardrenewals,right-sizingrelocations,andincrementalexpansionsratherthanlarge-scalecorporatecommitments.submarketdistributionremainedbroad,though

uptownandNorthI25continuedtocaptureadisproportionateshareofleasingvolume,

benefitingfromstrongamenityaccess,parkingavailability,andcompetitivelypricedinventory.Downtownleasingactivityremainedlimitedandhighlyselective,centeredonsmallerclassAtransactionsratherthanmeaningfulabsorptionoflargevacantblocks.classBassets

accountedforthelargestshareoftotalleasingactivityin2025,supportedbytheirlarge

inventorybaseandrelativevaluepositioning,whileclassAleasingimprovedmodestlyinthesecondhalfoftheyearafteraweakerstart.

1,517

4,656

6,217

westMesa

NEHeights

Downtown

FarNortheastHeights

uptown

NorthI-25

87,579

FIGURE6:Leasing(SF)bysubmarket

source:CBREResearch,Q42025

source:CBREResearch,Q42025

FIGURE8:keyLeaseTransactions

Tenant

sq.Ft.LeasedTransactionType

Address

submarket

stateofNewMexicoRegulationandLicensingDepartment

30,763

NewLease

100sunAveNE

Northl-25

southwestcapitalBank

18,752

NewLease

4100osunaRdNE

Northl-25

BankofAlbuquerque

17,949

Renewal

100sunAveNE

Northl-25

consensusplanning

6,217

Renewal

3028thstNW

Downtown

undisclosedTenant

5,299

NewLease

7850JeffersonstNE

Northl-25

undisclosedTenant

5,015

NewLease

7850JeffersonstNE

Northl-25

source:CBREResearch,Q42025

FIGURES|ALBUQUERQUEOFFICE|Q42025

5CBRERESEARCH?2026CBRE,INC.

MarketstatisticsbyIndex

NetRentableArea

(SF)

Totalvacancy

(%)

DirectAvailabilitysubleaseAvailabilityAvg.DirectAsking

(%)(%)Rate($/SF/yrFSG)

1,467,744

24.7

25.81

(82,524)

classB

5,430,118

21.36

17,273

classc

3,032,401

7.5

17.57

11,531

(37,336)

9,930,263

10.3

21.75

(53,720)

(29,971

NetRentableArea

(SF)

TotalAvailability

(%)

DirectAvailability

(%)

Avg.DirectAskingRate($/SF/yrFSG)

Q52025Net

Absorption(SF)

YTDNetAbsorption

(SF)

578,053

12.6

16.4

13.4

24.50

(9,075)

classB

1,164,957

37.5

37.5

37.5

19.85

(59,707)

classc

1,057,953

14.3

12.8

(20,554)

2,800,963

23.6

23.2

1.2

(22,788)

(89,336)

NetRentableArea

(SF)

Totalvacancy

(%)

DirectAvailability

(%)

Q52025Net

Absorption(SF)

YTDNetAbsorption

(SF)

2,045,797

21.3

18.4

16.5

25.60

(83,048)

(79,254)

classB

6,595,075

14.2

14.4

13.5

20.62

17,273

17,837

classc

4,090,354

9.3

8.5

17.44

(10,733)

(57,890)

Total

12,731,226

13。7

12,4

20.90

(76,508)

(119,307)

FIGURES|ALBUQUERQUEOFFICE|Q42025

6CBRERESEARCH?2026CBRE,INC.

Marketstatisticsbysubmarket

NetRentableArea

(SF)

DirectAvailabilitysubleaseAvailabilityAvg.DirectAsking

(%)(%)Rate($/SF/yrFSG)

867,183

(7,383)

Downtown

2,800,963

(22,788)

FarNortheastHeights

1,271,686

13.9

9,936

(46,070)

Mesadelsol

294,694

33.4

(98,500)

(98,500)

NEHeights

532,929

(1,655)

1,449

Northl-25

3,313,983

15,304

87,334

RioRancho

725,465

25.0

17,744

SEHeights

445,858

20.73

(6,275)

university

317,952

20.28

(13,950)

uptown

1,812,394

43,257

westMesa

348,119

2.1

(2,504)

(2,994)

Total

12,731,226

13。7

(76,508)

(119,307)

FIGURES|ALBUQUERQUEOFFICE|Q42025

MarketAreaoverview

CBREALBUQUERQUE

6565AmericasparkwayNE,suite825

Albuquerque,NM87110

surveycriteria

Includesallexistingindustrialbuildings10,000sq.ft.andgreaterinsize,intheAlbuquerquemetromarket.Buildingswhichhavebegunconstructionareevidencedbysiteexcavationorfoundationwork.

Methodology

positionabsorptioniscalculatedattimeofoccupancy,whichallowsforproducttobevacantbutnolongeravailable.Leaseratesarecalculatedusingweightedaverageofaskingleaseratesforexistingproductwithavailability.subleasespacecanbevacantoroccupied.Totalvacancyincludesbothdirectandsublease.Leaseactivityisthesumofthesquarefootageofleasessignedduringadesignatedtimeperiod.Datapublishedinpreviousreportsissubjecttochange.

contacts

sierraHoffer

FieldResearchManager/p>

sierra.hoffer@cbre.com

kareemsafieddine

FieldResearchAnalyst

/p>

kareem.safieddine@cbre.com

Jimchynoweth

ManagingDirector

/p>

jim.chynoweth@cbre.com

?Copyright2026.Allrightsreserved.Thisreporthasbeenpreparedingoodfaith,basedonCBRE’scurrentanecdotalandevidencebasedviewsofthecommercialrealestatemarket.AlthoughCBREbelievesitsviewsreflectmarketconditionsonthedateofthispresentation,theyaresubjecttosignificantuncertaintiesandcontingencies,manyofwhicharebeyondCBRE’scontrol.Inaddition,manyofCBRE’sviewsareopinionand/orprojectionsbasedonCBRE’ssubjectiveanalysesof