Market Trends
- The Denver industrial market has experienced a cooling trend, marked by a rise in vacancy rates. In the past year, these rates have increased by 140 basis points, reaching a current rate of 8.4%. This change signifies a shift in market dynamics, indicating reduced demand.
- Despite a 2023 market slowdown in Denver, rental prices continue to rise. The Central submarket, with a low 4.5% vacancy rate, commands high rents of $13.52 per square foot (psf). Meanwhile, the South submarket, with a higher 13.2% vacancy rate, showcases the diverse market conditions.
- In Q4 2023, Denver's industrial market faces a mixed scenario: a healthy net absorption of 1.7 million square feet (MSF) contrasts with rising vacancies, indicating a market experiencing both demand and caution. Although positive, net absorption has softened compared to last quarter, which reached a 5-year high of 5.4 MSF.