Denver industrial market report
Q2 2024
Denver's industrial market continues to exhibit resilience as we progress into the second half of the year. Despite a modest net absorption gain of 68,855 square feet, leasing activity remained robust with a total transacted volume of 2.6 million square feet in the second quarter. New deliveries reaching 1.2 million square feet combined with a relatively low absorption volume pushed vacancy rates up to 8.5%. However, the strong leasing activity has played a role in mitigating the impact of these elevated vacancy rates, maintaining an equilibrium in the market.
3.8 mos.
Smaller properties are leasing at a faster rate than pre-pandemic levels
Buildings 20k-100k sf have averaged 3.8 months to lease up, which is faster than pre-pandemic levels suggesting demand persists. Comparatively, buildings 250k sf and greater are taking 8 months on average to lease up over the trailing 4 quarters.
8.5%
Overall vacancy rises triggered by the delivery of new product
Over the past year, vacancy rates have increased by 180 basis points to reach 8.5%, driven by a slowdown in absorption and the influx of 13.3 million square feet of new space added to the inventory in the last 12 months.
2.6 msf
Leasing activity remains steady in Q2
2.6 msf of leasing transaction volume has been signed for Q2. Mid-sized leases, from 20k-50k, lead in demand. Notable deals include LEC Event Technology, Lennox, and Star Precision.
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.