The Q3 2024 industrial real estate market report for Metro Denver showed positive momentum after a stagnant period. Net absorption reached 2.54 million square feet, reminiscent of COVID-era activity, reducing vacancy to 8.08%. Notable transactions, such as BroadRange Logistics’s 1 million square foot lease at 76 Commerce Center and Amazon’s acquisition at DIA Logistics Park, fueled this growth. However, challenges remain in capital markets and operating expenses. Investors have cautiously reentered the market, signaling optimism for 2025. Key trends include increased demand for industrial outdoor storage, tenant adoption of automation, and muted development activity.
Highlights
- Net absorption of 2.54 million square feet in Q3 2024.
- BroadRange Logistics signed the largest lease of 1.07 million square feet.
- Amazon acquired a 625,000 SF building for $91 million.
- Vacancy rate dropped to 8.08% from previous quarters.
- Investment and large user sales, including Amazon’s purchase, signal renewed market activity.