Denver industrial market report

Denver, Boulder, Fort Collins and Greeley collectively have 240 msf of industrial inventory. With over 10 million sf of industrial product under construction in the region, 2022 saw 8.6 million sf delivered, which accounts for 3.6% of the total inventory and more than typically delivered historically.

In the first three quarters of 2022, the region has seen over 5.9 msf of positive net absorption followed by another 1.5 msf of net absorption in Q4 which the majority was in the E I-70 corridor. Fort Collins/Loveland and Northwest Denver also saw a large amount of absorption within the year.  

Asking rental rates continue their steady growth and have risen 10% within the year. 

Both direct and sublease availabilities escalated marginally during the year after remaining constant throughout 2021.

Trending downward the last year, vacancy also slightly increased from the previous quarter due to recent increase in inventory delivered and tenants experiencing longer build-out periods.

Asset values continue to increase although in Q3, the market began to react to the increased interest rate environment along with equity hurdles, which further widened the buy/sell spread. Sales volume for the second half of the year were 50% less than the first half of the year and were relatively equal between Q3 and Q4 2022.