Download Las Cruces, New Mexico

Las Cruces, New Mexico
Following decades of sustained growth, growth which
consistently defied business cycle downturns and
recessions alike, current indicators confirm the Las Cruces
economy remains influenced by the unprecedented
confluence of external factors associated with the global
financial crisis some two years after its official end.
While relatively mild, in both depth and duration, such
uncharacteristic weakness remains cause for caution in
each and every local commercial, investment real estate
sector.
Mirroring national economic downturn and trends, the broad
Las Cruces office market has seen deteriorating fundamentals.
Layoffs in heavy office using employment sectors resulted in
diminished demand yielding a 330 basis point increase in
vacancies and 4% decline in market average rental rates
on a year-over-year basis. Looking at longer trends, vacancy
rates have risen 9.6% from their low in 2008 with lease
rates falling 1% below their 2007 to 2011 period average.
Contact
NAI 1st Valley
+1 575 521 1535
Metropolitan Area
Economic Overview
2011
Population
238,792
2016 Estimated
Population
256,847
Employment
Population
107,966
Household
Average Income
$44,736
Median
Household Income
$32,353
Total Population
Median Age
Amid news of declining net worth and consumer sentiment,
it has been said "Flat is the new Up.” In this light, it can be
said things are looking up for the Las Cruces retail market.
With vacancy rates down and gross receipts from retail trade
posting moderate increases, owners and their agents should
enjoy certain latitude for lease rate increases to prerecession levels going forward. Numerous major retail players
whose strategy has been to delay entry and/or expansion
into the market have indicated they'll be moving dirt and
opening doors here in 2011 and 2012. If we can rely upon
the veracity and sophistication of their market analytics, this
too provides further evidence that operating fundamentals
in this consumer/consumption driven sector are headed in
the right direction.
Within a perfect storm of scant new supply and heightened
demand from increasing household formation, the Las
Cruces multifamily market continues to register positive
operating results. A 3.1% year-over-year increase in rents
coupled with a 97.2% market average occupancy rate, a
310 basis point improvement over the already admirable
2001 to 2011 period average of 94.1%, make this the best
performing Las Cruces commercial real estate sector.
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Las Cruces At A Glance
Low
(Rent/SF/YR)
High
Effective Avg.
Vacancy
DOWNTOWN OFFICE
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 14.23
N/A
N/A
8.90%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
$ 24.02
$ 17.79
N/A
6.80%
18.10%
$ 3.00
N/A
N/A
$ 5.00
N/A
N/A
$ 4.00
N/A
N/A
9.50%
N/A
N/A
$ 12.50
N/A
N/A
N/A
$ 16.00
N/A
N/A
N/A
$ 14.00
$ 15.76
N/A
N/A
9.50%
8.30%
N/A
N/A
SUBURBAN OFFICE
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
INDUSTRIAL
Bulk Warehouse
Manufacturing
High Tech/R&D
RETAIL
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
DEVELOPMENT LAND
Low/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
$
$
217,800.00
196,020.00
25,000.00
25,000.00
392,040.00
10,000.00
High/Acre
$
$
$
$
$
$
348,480.00
261,360.00
35,000.00
35,000.00
522,720.00
80,000.00