Denver Industrial Q2: Absorption Positive, But Watch Construction

Leasing and absorption for metro Denver’s industrial sector remained positive in Q2 2019, according to figures released from area brokerages. Even as absorption was on the positive side, the analysts from various firms noted that increasing deliveries are pushing vacancies. With the market active in construction, the outlook calls for “a shift to tenants’ favor,” according to JLL.

Hoff & Leigh pointed out that demand continues “in one of the hottest industrial markets in the country,” with tight vacancies and “significantly below the historical average . . .” All four companies examined touted the region’s variety of industrial space, “in which . . . tenants are taking advantage of vacant first-generation space and secondary space” from others moving up to quality space, NKF noted. The extra deliveries prompted Cushman & Wakefield to indicate that vacancy remained flat, overall, though anticipated this figure would “rise slightly over the remainder of 2019.”