New commercial warehouse under construction in Albuquerque amid lack of industrial inventory

After sitting idle for a decade, a prime plot of land in the north Interstate 25 corridor is seeing activity thanks to a commercial warehouse project.

Albuquerque-based Mechenbier Construction Inc. is building the 76,574-square-foot warehouse at 4000 Ellison NE after acquiring the land in 2015. Despite the period of inactivity, the project is on track and moving full steam ahead as the company aims to wrap up late this year.

The progress of building out the facility comes during a time when commercial warehouse spaces are hard to find — a result of a lack of land and expensive costs for building.

“A lot of site selectors I’ve talked to have often wondered why our market is so small,” said Bill Robertson, a real estate professional of 41 years and senior vice president and principal at the commercial real estate agency Colliers. “Because comparative to other cities, we have probably half the inventory that is really needed for this market.”

There’s “no question” that Albuquerque needs more commercial warehouse space, Robertson added.

Mechenbier Construction, led by local developers, acquired the roughly four acres of “highly desired” land 10 years ago due to its proximity to I-25, Paseo del Norte and Alameda, said Mechenbier Construction owner Jeremy Mechenbier. The project broke ground in October and encompasses the fresh build of the more than 76,000-square-foot flex office and warehouse space.

Mechenbier said the land was held in abeyance because the company was holding it as an investment and waiting to complete other projects.

The Ellison building will feature an aluminum exterior and employee amenities including a large outdoor patio and lunch area with seating, shade, landscaping and energy-saving LED lights, according to a news release from the company.

The yard area surrounding the building will have 76 oversized parking spots, as well as multiple drive aisles and accommodations for large semi-truck deliveries, including dock ramps, two pit levelers and four steel, insulated garage doors.

The total cost of the project is $9.4 million, Mechenbier told the Journal, with project financing provided through Nusenda Credit Union.

Mechenbier contracted many local companies to help with the project, including DH Pace — also known as the Overhead Door Company of Albuquerque — which is the warehouse’s first tenant. The company, a supplier of commercial and residential door and door-related products, has signed a lease to use more than 60% of the building for its office and warehousing needs.

The remaining 40% of the space is up for grabs, Mechenbier said.

Mechenbier said the project is “on schedule” and expected to wrap up later this year. Tenants should be able to move in and begin utilizing the space in December.

As for the future of industrial development in Albuquerque, Robertson said, “There’s got to be some participation with the state and local governments helping with the cost so they can open up some of the land for development of industrial because it’s necessary. It’s good for the economy.”