Large Denver industrial spaces sustain peak vacancy rates
otal Denver industrial vacancy rate by building size.
- As occupiers seek out industrial space, an emerging trend showcases the desire for smaller space. This is reinforced by vacancy rates based on property size, with big box product exceeding 250,000 square feet experiencing a year-over-year increase in vacancies.
- Notably, properties larger than 500,000 square feet have the highest vacancy rate at 15.3%, marking a dramatic 5.5% rise compared to the preceding year. In contrast, smaller buildings between 20,000 to 50,000 square feet remain highly sought-after boasting the lowest vacancy rate at 4.4%.
- This trend is supported by leasing activity, with transactions for spaces below 50,000 square feet driving demand in 2023. A total volume of 6.7 million square feet was transacted in the past year, reflecting the inclination of industrial occupiers to downsize or opt for smaller leased spaces.
