Denver industrial market report
Q4 2024
The industrial property sector showcased remarkable resilience and growth in 2024, with leasing activity reaching an impressive 11.6 million square feet (msf), underscoring the vitality of the market. Vacancy rates declined steadily quarter-over-quarter, improving by 20 basis points, driven by strong absorption totaling 4.1 msf. Developers demonstrated a prudent approach, carefully calibrating the pace of new project deliveries to align with market demand and avoid the risks of oversupply. Meanwhile, capital markets flourished as 13.5 msf of industrial properties changed hands, generating a remarkable $1.6 billion in sales—a 50% surge in transaction volume year-over-year. This positive momentum is indicative of healthy market fundamentals.
11.6 msf
Steady leasing demand drives industrial market
In 2024, the industrial market witnessed an impressive 11.6 msf of transaction volume. The logistics and distribution sector led in activity, while engineering, architecture, and construction occupiers followed closely behind, collectively representing 44% of all transactions.
4.1 msf
Net absorption accelerates during second half of 2024
The Denver industrial market continued its recovery, with 4.1 msf of positive net absorption, demonstrating sustained market strength. Consistent leasing activity and demand from key industries have fueled this growth.
7.5%
Vacancy continues to decline
The industrial market showcased its resilience as vacancy rates declined by 0.2% to 7.5% by the end of Q4. The steady decrease in vacancy highlights the robust demand and consistent leasing activity that continues to drive the market forward. With a balance of supply and demand, the industrial sector remains dynamic and well-positioned for sustained growth and opportunity.
Your source for the latest Denver industrial real estate reports
Stay on top of current trends affecting the industrial real estate sector in Denver. Gain an overall better understanding of Denver's industrial real estate market conditions, so you can better formulate strategies to overcome any obstacle and know how to best invest in industrial real estate in Denver.
Here, you’ll always find the latest industrial real estate market news so you can stay ahead. Come back often to see expert insights on the current and future of Denver industrial real estate market.