How have Denver industrial sales been affected by interest rates?
Tracking Denver sales volume and interest rates over time
- Rising interest rates, reaching 5.3% by year-end 2023, have increased borrowing costs for developers and investors, leading to a slowdown in new construction projects and property acquisitions. Developers may delay or scale back their development plans, while investors become more cautious.
- Rising interest rates have already subdued investor interest in industrial properties. As borrowing has become more expensive, this has led to reduced investment activity and slower transaction volumes in the Denver industrial market as seen in 2023.
- Uncertainty regarding future interest rate movements and their potential impact on property values and investment returns further contributes to cautious decision-making among market participants, contributing to fluctuations in pricing and transaction activity.
