Industrial Market Remains Flat

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DENVER-The Denver-area industrial market remains flat, according to industrial broker Mitch Zatz, a director in the Denver office of Cushman & Wakefield. In fact, flat may be a bit generous, as Zatz notes there’s not a whole lot to get excited about when it comes to the overall industrial market.

Indeed, the overall industrial market is expected to rise to 14.1% by year-end, compared with 13.6% in 2004. The 14.1% vacancy rate is the highest in more than a decade. However, the market’s vacancy rate as been rising every year since 2000, when it stood at 5.9%. In 2000, the average rental rate was $9.09 per sf, 20.5% higher than today’s rate of $7.54 per sf. Last year, the average rate was $7.57 per sf.