Denver Industrial Real Estate Market Reports | Avison Young US - Denver
Denver industrial market report
Denver's industrial market continues to show resilience and a strong performance. The demand for industrial space has remained robust, although a new trend has emerged. Small to medium-sized spaces are in demand as deals ranging from 20k to 50k sf lead leasing volume year-to-date with a total of 2.1 msf transacted. Additionally, positive net absorption has been observed, with a 2.5% increase quarter-to-date, resulting in a total of 6.3 msf of positive absorption and a cumulative 9.4 msf for the year-to-date. Market conditions are stabilizing, as vacancy currently sits at 6.3% quarter-to-date with a marginal increase of 0.05% from Q2. Nevertheless, these minor fluctuations highlight the overall health and stability of Denver's industrial market.
Smaller leases leading in demand
As of 2023, 2.1 msf of industrial space, ranging from 20k-50k sf, has been in most demand as seen in recent leasing activity. Leases ranging from 10k-20k sf follow closely in this trend with 1.3 msf industrial space leased since the start of the year.
Net absorption remains positive in Q3
Net absorption remains positive, increasing 2.5% quarter-to-date, with 6.3 msf of absorption as large-scale tenants, such as Amazon and Dollar General, delivered their projects.
Vacancy showing signs of stability
While vacancy rose marginally by 0.05% from Q2, it shows signs of stabilizing as the growth since year-end 2022 has been minimal. New construction has affected the elevated vacancy rates as the Denver industrial market has delivered almost 10 msf of product year-to-date.
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