For years, Albuquerque's biggest employers left Downtown for submarkets they thought were more suitable for their businesses. Those submarkets include business centers like as Journal Center and Uptown.

But with Molina Healthcare settled in and ABQ Health Partners set to move into 63,000 square feet Downtown, CBRE New Mexico reports it appears Downtown's story is about to turn around.

Its second quarter office market report highlights Downtown as an area to watch. Though Downtown's office vacancy is second highest in the city at 34.9 percent, CBRE points to the area's growing appeal.

"We anticipate other expansions within the Downtown submarket during the coming quarters," the report reads, which was written by researcher Atsuko Poelman. "The efforts to revitalize the Downtown area by public and private sectors seems to be a contributing factor in attracting occupiers."

With significant investments in the convention center, a new entertainment district, more coffee shops, breweries and a new grocery store opening Downtown, the neighborhood does appear to be improving.

Terri Dettweiler, first vice president with CBRE who does office leasing, said while Downtown's amenities have improved, the biggest driver remains an economic one.

Downtown's lease rates are cheaper than other prime submarkets, mainly Uptown and the North I-25 corridor. For Class A space, the type of building with a lot of amenities for workers, Downtown averages $20.88 per square foot, much cheaper compared to Uptown's $24.19 and the North I-25 area's $23.38 per square foot.

"The rates are so competitive, and having two huge tenants like [Molina Healthcare and ABQ Health Partners] locate down there is going to lead to other types of amenities being available because of increased density," Dettweiler said. "Parking is typically the one downside. But you have the city and a lot of economic folks helping which makes it much more palatable for big users."

The overall market's vacancy rate went up half a percent, from 22.5 percent in Q1 to 23 percent in Q2, meaning nearly a quarter of Albuquerque's 13.8 million square feet of office space is empty. Continue to Albuquerque Business First to read more.