Denver industrial market report
Q3 2024
Denver's industrial market continues to demonstrate resilience, with a strong quarter-end performance in Q3. Net absorption reached 2.0 million square feet square feet, and leasing activity remained robust with a total transaction volume of 2.7 million square feet. New construction deliveries have slowed down from previous quarters reaching 2.4 million square feet year-to-date (including 475k sf in Q3). Despite the influx of new supply, the market fundamentals remain healthy as strong quarterly absorption gains helped push vacancy rates downward to 7.9% in Q3. The sustained leasing activity, plus strong positive absorption outpacing new supply for the first time in 18 months played a significant role in vacancy rates finally decreasing.
2.7 msf
Leasing activity remains steady in Q3
The Denver industrial market saw a significant 2.7 million square feet of space leased, with major deals by Amprius and BroadRange Logistics accounting for a combined 1.8 million square feet. These notable transactions highlight strong demand in the sector, positioning Denver as a key industrial hub.
23.6%
Southeast Suburban experiences the highest rent growth
The Southeast Suburban submarket has experienced the highest rental growth in the Denver industrial market over the past two years, with rates increasing by 23.6%. This surge outpaces other submarkets, reflecting heightened demand for industrial space in the area.
7.9%
Vacancy drops for the first time in 18 months
Despite an influx of newly delivered industrial space, vacancy rates in the Denver market have dropped for the first time in 18 months. Strong absorption and robust leasing activity have helped offset the increase in available inventory.
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