The Denver industrial market continues to surge. The market set new asking rate records for both warehouse product and industrial product overall during the quarter. The pipeline continues to grow as the quarter closed with more product under construction than the previous quarter, despite a huge quarter for deliveries. Absorption rebounded substantially after a sluggish second quarter and industrial investment activity continues to amplify. The Denver industrial market is full steam ahead.
Denver’s office recovery has halted as net absorption rapidly declines. Leasing activity has also slowed in the recent months. As large employers struggle to figure out their return to office plans, pushback from employees is delaying the mass return to office that was previously forecasted. Employers are continuing to utilize robust amenity packages and upgraded workspaces to attract and retain employees back in the office.
The Denver retail market continues to trend in the right direction.
Absorption was positive for the sixth consecutive quarter, asking rates
have surpassed pre-pandemic highs, and investor activity continues to
accelerate with the market on pace to comfortably surpass the largest
sales volume figure in metro history. As metrics continue to improve,