Calculate cap rates and net operating income for commercial properties in New Mexico. Compare your results against New Mexico's secondary market benchmarks sourced from CBRE H2 2025.
New Mexico's CRE is anchored by federal government and defense spending (Sandia and Los Alamos national laboratories, Kirtland AFB), healthcare, energy (oil and natural gas in the Permian Basin), and tourism. Albuquerque is the primary investment market. Film and TV production has been a growing economic driver since the Breaking Bad era created studio infrastructure.
| Property Type | Typical Low % | Typical High % |
|---|---|---|
| Multifamily | 6.0% | 8.0% |
| Industrial | 6.5% | 8.5% |
| Retail | 6.5% | 8.5% |
| Office | 7.0% | 9.5% |
Benchmarks sourced from CBRE H2 2025 Cap Rate Survey, JP Morgan, Matthews, and Cushman & Wakefield market data. Ranges represent typical stabilized assets — actual rates vary by asset quality, location, and market conditions.
New Mexico cap rates range from 6.0–8.0% for multifamily, 6.5–8.5% for industrial and retail, and 7.0–9.5% for office. Albuquerque has the most competitive rates in the state, while rural and oil-dependent markets have higher yields reflecting lower liquidity.
Albuquerque's CRE is anchored by Sandia National Laboratories, Kirtland Air Force Base, the University of New Mexico, and a growing healthcare sector (Presbyterian Health, Lovelace Health). The film industry (Breaking Bad/Better Call Saul's Albuquerque Studios, Netflix and Amazon productions) has created industrial demand for production facilities and related services.
New Mexico's share of the Permian Basin (Eddy and Lea counties in the southeast) has created significant oilfield services industrial demand and workforce housing needs. Hobbs and Carlsbad are primary beneficiaries. However, this creates energy-price sensitivity in those markets, with cap rates reflecting the cyclical nature of oil and gas activity.
This tool is for informational and educational reference only and does not constitute real estate investment advice. Cap rate benchmarks are estimates based on published industry surveys and may not reflect current conditions in your specific market, submarket, or asset class. Actual cap rates vary significantly based on property condition, location, tenant quality, lease terms, and local market dynamics. Always consult a licensed commercial real estate broker, appraiser, or investment advisor before making real estate investment decisions.