Crews were called out to the fire, which is southwest of the State Fair grounds, around 4:15 p.m. Tuesday, Albuquerque Fire Department spokeswoman Melissa Romero said.
When firefighters arrived there was heavy smoke and flames. Nobody was in the building, Romero said. It is unknown how or where the fire started.
Firefighters initially fought the fire from inside but pulled out because of the possibility the building could collapse.
Romero said the building was likely a total loss.
The Musical Theatre Southwest has been operating in Albuquerque for 50 years, according to its website.
There were costumes and props in the building, Romero said.