What's Happening?
NAI SunVista brokers Ben Nolte and Alexis Lovato have announced a new industrial flex development at 7501 La Morada Place NW on Albuquerque’s Westside. This ground-up project, developed by Theodore “Ted” Jaramillo, consists of three buildings, each approximately
9,600 square feet, totaling around 28,800 square feet before additional mezzanine space. The development offers 12 individual units, each approximately 2,400 square feet, with an additional 800 square feet of mezzanine space not included in the advertised unit square footage. These units are designed to provide a combination of office and warehouse facilities, addressing a shortage of small-business industrial options in a submarket typically dominated by larger distribution properties. Businesses have the flexibility to lease individual units or combine spaces to meet larger operational requirements. Move-in-ready spaces are now available for lease.
Why It's Important?
This new industrial flex development is important for Albuquerque's Westside as it directly addresses a critical gap in the commercial real estate market for small businesses. The availability of smaller, versatile industrial spaces that combine office and warehouse functions is crucial for startups, growing enterprises, and companies that require both administrative and operational areas. Previously, the submarket was characterized by larger distribution properties, which often proved unsuitable or cost-prohibitive for smaller entities. By offering flexible leasing options and units with integrated office and warehouse space, the development supports local economic growth by providing essential infrastructure for small and medium-sized businesses. This initiative can foster job creation, stimulate local commerce, and diversify the economic landscape of the region, making it more accessible for a broader range of businesses to establish or expand their operations.
What's Next?
The new industrial flex spaces at 7501 La Morada Place NW are now available for lease, with businesses able to move in immediately. The property flyer indicates an annual lease rate of $16.50 per square foot, plus estimated triple-net charges of $2.25 per square foot. This translates to approximately $3,300 in monthly base rent and $450 in monthly NNN charges for a 2,400-square-foot unit, totaling around $3,750 per month, with water and gas included in the NNN charges. Given that the development aims to fill a specific market need for smaller industrial spaces, NAI SunVista will likely focus on attracting a diverse range of small businesses. The success of this project could also influence future commercial real estate developments in the area, potentially encouraging more projects tailored to the needs of small and medium-sized enterprises.
Beyond the Headlines
The development at 7501 La Morada Place NW signifies a broader trend in commercial real estate towards more flexible and adaptable spaces, particularly in response to the evolving needs of small businesses and the gig economy. The inclusion of mezzanine space and the ability to combine units reflect a strategic understanding of modern business requirements, where efficiency and scalability are paramount. This approach could set a precedent for future industrial developments, moving away from monolithic structures towards more modular and customizable solutions. Furthermore, by catering to smaller businesses, this project contributes to local economic resilience, as small businesses are often the backbone of community economies. The success of such developments can also lead to increased property values and further infrastructure investment in the surrounding areas, creating a ripple effect of economic benefits.
