Denver industrial market report
Denver’s industrial market continues to expand in the first quarter after a record setting 2021. The metro area’s overall employment grew 5.3% in the past 12 months, with 2.6% growth amongst the manufacturing, construction, warehouse, transportation and utilities sectors combine.Consistent demand for industrial space has led to a building boom with over 14 msf currently underway. Denver’s low vacancy rate is prompting speculative development and an increasing amount of preleasing in proposed/under construction buildings. Even though large blocks of space have delivered to the market this year, the industrial market remains tight with a direct vacancy rate of 5.6% and asking rents increased by 8.1% from 1Q 21 to end of 1Q 22. Denver's industrial market is growing at a fast pace, and demand for industrial product is projected to remain high in 2022.
Denver’s overall industrial vacancy rate remains low with virtually zero sublease space available, around 5.6% direct and 0.4% sublet.
Leasing activity in Q1 2022; with 96% of which direct leasing and 6% subleasing activity.
Net absorption in Q1 2022 as demand for industrial space remains strong, largely driven by e-commerce and healthcare tenants.
Industrial productis currently under construction, comprising of 63 projects.
Q1 2022 new industrial product delivered. Denver saw 8.1 msf of new industrial space delivered in 2021, which is up from 5.7M and 6.0M in 2020/2019 respectively.
Denver NNN direct rent continues a steady upward trajectory.
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