This supply-demand imbalance led to record-setting prices for industrial property sales, with rents following suit; rents steadily climbed and ranged from $13.00 to $15.00 per square foot for new leases in 2023. In the dynamic landscape of Santa Fe’s industrial real estate market, the trend of diminishing inventory persisted throughout 2023, while the demand for available space showed no signs of slowing down. Industries such as contractors, and construction trades, particularly those servicing government projects, continued to drive this demand, seeking suitable spaces to operate efficiently.

Despite persistent demand, the supply side of the equation saw limited growth, with only three quality industrial parks offering available land for sale, and minimal new inventory introduced in 2023. Noteworthy additions to the industrial landscape included an 8,000 square foot custom car storage facility in the Oliver Business Park and a substantial 30,000± square foot building catering to the needs of the PODS outdoor storage container business in the Hart Business Park, both designed for owner/user purposes.

Estimates for the construction of new metal buildings hovered between $225 and $275 per square foot, reflecting the growing cost of entry into the market. Sales of industrial land in 2023 varied between $10.00 and $12.00 per square foot, contingent upon location.

Looking ahead, projections indicate a potential climb in industrial rents to $20.00 per square foot over the next two years, which could result in new speculative industrial building construction.

Notably, there remains a steady demand for industrial spaces ranging from 3,000 to 10,000 square feet. If you find yourself holding vacant industrial space, whether for lease or sale, our team stands ready to offer expert consultation. With a multitude of active requirements for industrial properties, we’re poised to navigate the complexities of the Santa Fe industrial market on your behalf. Reach out to us today to explore your options and capitalize on the opportunities available.