X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-The area industrial market remained relatively stable, according to a second-quarter report by the local office of the Trammell Crow Co. The Trammell Crow reports says direct vacancy rate inched up to 8% from 7.8%, with most submarkets posting moderate to no changes.

One exception was the Aurora submarket, where the vacancy rate increased 4.5 percentage points, climbing to 17%, the second highest metro area vacancy rate. It is topped only by the 17.8% vacancy rate along the southeast corridor.

The tiny Glendale industrial market has the lowest vacancy rate in the area, at only 3.1%.

Quarterly net absorption was 772,081 sf, nearly all of which occurred in new industrial products. More than 1.1 million sf was delivered in the second quarter, with more than 66% of the space leased at delivery.

The quarterly performance pushed year-to-date net absorption to 248,490 sf after a negative first quarter.

Meanwhile, the overall industrial average rental rate gathered a little ground, rising $0.10 per sf to end the quarter at an average of $7.33 triple net.

The Boulder submarket continues to command the highest average rate of $10.10 per sf, triple net, while the Montbello/I-70 submarket reports the lowest average at $4.88 per sf, triple net.

The majority of the product in the Boulder submarket is flex or high-tech, which translates into a higher rate. The Montbello area, by contrast, is mostly warehouse/distribution space that does not require extensive build out, Trammell Crow notes.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.