Warehouses Remain Hot Options in Denver

Sometimes, it’s been heard, by the time the headline hits the New York Times – and that headline’s not related to New York – it’s a story on the decline. Not so when warehouse demand continues to soar. Most definitely, that includes Denver.

Per the NYT:

The shortage of commercial warehouse and industrial space is the latest fallout from pandemic-fueled growth in online shopping and shows few signs of abating.

Companies from delivery/logistics, retailers and others continue to adapt to post-Covid market dynamics, often translating to stockpiling goods. Also post-Covid-related news is the slow addition of the construction of industrial warehouse space.

The city of Denver’s own report shows the relation of market demand and on-the-ground availability: “Metro Denver’s industrial market vacancy rate increased slightly from 6.5% in the first quarter of 2021 to 7% in the second quarter of 2021. Net absorption in the first quarter of 2021 totaled 80,000 square feet, compared to 550,000 square feet of net absorption in the second quarter of 2021.“