Market Trends
- Quarterly net absorption rose to 1.5 million square feet (msf), the highest this year, driven by two 500,000-square-foot move-ins by BroadRange Logistics in the Northeast submarket. This brought year- to-date absorption to 2.0 msf, well below the 7.4 msf recorded in Denver last year.
- Vacancy growth is plateauing, rising just 10 basis points (bps) this year compared to 130 bps in 2023. With the construction pipeline at an 18- month low of 4.1 msf, one-third of which is build-to-suit, vacancy rates may continue to stabilize in the coming quarters.
- Rent growth has slowed significantly — despite reaching a record high this quarter of $9.53 per square foot (psf) — rising just 0.4% year-to-date compared to 8.2% during the same period in 2023. This trend may continue as supply and demand approach equilibrium.