Rising Premiums For Industrial Space In Denver
Denver has long been an industrial capital for the Rocky Mountain region for some time now. Considered the most isolated major city in the United States, Denver has long serviced the entire mountain west region. As a result, Denver commercial real estate has been growing since the turn of the 20th century. Unfortunately, high demand means there will likely be a shortage, and as such, unoccupied industrial spaces in Denver have become more and more difficult to come by. In fact, Transwestern reported that Denver’s industrial real estate vacancies have reached a ten-year-low.
Just in June of this year, there was an overall industrial vacancy rate of just 3.18%, well below the threshold of 5% which is considered normal. This means that businesses are in a rush to get to the Denver area, and that can be either a good or bad thing depending on your perspective. For some, it spells difficulty actually moving to Denver. This means that in the short-term, business growth in Denver could stall. However, at the same time, it can also spell the need for more development for such spaces in the near future. Denver has spearheaded that development with its plans to build airport city around the Denver International Airport. The plan is hoping to add 70,000 new jobs with its construction over the 53 square miles of land. But these projects can take time, and that means that new businesses will have to wait before they can open up a location here.
In the meantime, continuing to do business with the Denver area will always be lucrative, even if it means opening in office in a nearby city. Longmont has posted a 17.5 vacancy rate for industrial spaces since April of this year, and it is quickly becoming one of the larger tech locations in the state. Sooner or later, the infrastructure for the demand will be put in place, but it will take time.
How To Use This Information
Industrial locations can be difficult to find to begin with because there are so many specific amenities required for these businesses to operate effectively. If you’re interested in finding any commercial real estate in Denver, call us at 303-744-0377, or visit our website to learn more. We will ensure that as long as the spaces are available, we will find you the kind of industrial or office space you need to effectively run your business.
What has your experience been like with Denver’s industrial vacancies?
Categorized in: Denver Real Estate News
This post was written by Capital Realty