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Market Report

Denver Industrial Investment Forecast

2019 Outlook

Surging Population Fosters More Deliveries; Transitioning Areas Provide Investors With Options

Influx of space pushes vacancy up; Denver still adjusting to large supply additions of recent years. The population boom on Colorado’s Front Range has heightened the metro’s status as a prominent logistics hub. In addition to serving the immediate area, Denver-based distributors cater to surrounding regions in Kansas, Nebraska and Wyoming. With an expansive radius, companies are realizing a need for a Denver footprint as they attempt to minimize the distance between their products and consumer base. As a result, industrial development will exceed 3.5 million square feet for the fourth year in a row with significant supply infusions in the Peña Boulevard corridor, Dove Valley and parts of North Washington. Though this will cause the average market vacancy to rise for the second time in as many years, space demand in the metro remains strong, especially around Commerce City and communities near Denver International Airport. With solid demand in place metrowide, the average asking rent should advance at a steady clip in 2019, moving roughly $1 per square foot above the national average.

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