Denver Industrial Market Report

Tenant needs remain diverse. Denver’s inventory expanded by roughly a quarter during 2016-2023, contributing to a 470-basis-point rise in vacancy. While construction has slowed considerably, continued relinquishment of older properties has kept vacancy above 9 percent as of June. Air freight activity at Denver International Airport (DIA), however, is on pace to top 700 million pounds for a second straight year, which should support demand from transportation, warehousing, and wholesale tenants. Meanwhile, the metro’s roster of manufacturers, engineering firms, and aerospace companies should sustain demand for flex, R&D, and light-industrial space, preventing a sizable increase in overall vacancy this year.