The 1st Quarter has demonstrated the first significant impact of new construction in the Albuquerque Market. Vacancies have reached the highest they have been in the last several years with an average city vacancy of 8.1%. The state has also witnessed an overall increase to 8.9% with a majority of the vacancy being attributed to the El Paso market (considered by many a submarket of New Mexico, not Texas). Another first is the recent increase in rents in Albuquerque’s west side, in that west side rents have now surpassed the NE quadrant of the city on a rent per square foot basis. Although the highest rents per square foot are on Albuquerque’s west side, the highest average for a community is in Santa Fe at $.80 per square foot. This also represents a new trend - Albuquerque is steadily closing in on the long time lead that Santa Fe has held (once over $.10 higher per square foot.) Please note that some of the smaller metro area’s numbers are skewed by the small sample size (i.e. Aztec, Quemado, etc.) As I refine the information in my database, look for an update on smaller communities like Roswell. I preliminary numbers indicate that we can expect a modest rent increase between the first and second quarter, with an increase in occupancy, and a positive absorption in the third quarter of 1996. City Market Area Monthly Rent Size $/sf Total Units in Survey Vacancy Total Units in Survey Albuquerque $511 673 $.76 35,850 8.1% 38,894 NE $535 706 $.76 26,070 6.9% 28,533 NW $572 705 $.81 4,225 9.1% 4,479 SE $368 522 $.70 5,147 14.9% 4,849 SW $138 200 $.69 408 6.0% 718 Angel Fire 0.0% 24 Aztec $184 127 $1.44 71 0.0% 48 Belen $234 379 $.62 253 0.0% 105 Bloomfield $135 200 $.68 15 Carlsbad $234 325 $.72 477 0.7% 459 Clovis $269 699 $.38 307 0.0% 257 El Paso $451 786 $.57 2,2288 12.7% 16,203 E $457 775 $.59 10,855 13.9% 8,602 EP $370 800 $.46 65 LV $345 582 $.59 1,743 6.2% 812 NE $422 853 $.50 1,798 16.5% 1,074 NW $508 732 $.69 248 UP $538 945 $.57 116 W $472 833 $.57 7,222 11.2% 5,537 Espanola $389 608 $.64 50 0.0% 50 Farmington $137 259 $.53 1,440 8.7% 1,166 Gallup $292 300 $.97 831 1.4% 361 Grants $235 496 $.47 231 0.0% 196 Las Alamos $477 847 $.56 56 8.2% 108 Las Cruces $440 694 $.63 2,577 4.2% 2,114 Las Vegas Los Lunas $294 524 $.56 244 2.1% 108 Portales $294 524 $.56 244 0.0% 76 Quemado 25.0% 10 Raton 4.2% 48 Rio Rancho $344 461 $.75 460 1.8% 452 Roswell 1.5% 135 Santa Fe $451 562 $.80 4,023 9.3% 5,530 Socorro $392 477 $.82 477 0.0% 264 Taos New Mexico $466 680 $.69 69,742 8.9% 66,608 All of the information in this newsletter is culled from the private database of Todd Clarke CCIM