Market Trends
- Vacancy rates have increased by 240 basis points over the past year to 9.6%, likely due to the addition of 11.5 million square feet of space to Denver’s inventory. Northeast Denver fetches the highest vacancy at 13.7%.
- Rental growth has slowed to 1.2% year-over-year, down from the average 10.4% increase over the past four quarters. This may indicate the market is slowing amidst rising vacancy rates.
- The Denver industrial market sees negative net absorption (-0.6 msf) for the first time in 6 years. This is due to muted leasing and large-scale availabilities like the 200,000 square feet (sf) added at 20321-20431 E 35th Drive.