Denver Industrial Figures Q4 2024

Total net absorption came in at positive 580,000 sq. ft. for Q4 2024, the second highest quarter of the year, but was not enough to propel the annual total to similar levels experienced during the pandemic boom.

The good news is that new construction completions tapered at a similar pace, decreasing 52.2% compared to year-end 2023. The amount of sq. ft. under construction had been decreasing since the final quarter of 2023, but saw an increase in Q4 2024 with 1.7 million sq. ft. breaking ground. Of this total, 800,000 sq. ft is a build-to-suit project.

Despite consistent positive net absorption and declining construction, direct vacancy still increased 20 bps compared to the end of 2023. After peaking in Q2 2024, direct vacancy fell 10 bps in both Q3 and Q4 2024, ending the year at 7.6%. Asking rents remained stable in Q4, but rose 5.2% year-over-year.

Leasing activity did well to keep up with supply as 12.6 million sq. ft. of activity occurred in the year, with 65.8% of that total being new leases/expansions. This made 2024 the highest total for leasing activity since 2021, with the highlight of the year being BroadRange Logistics signing a new lease for 1.1 million sq. ft. in Q3. Q4 2024 had 2.8 million sq. ft. of total leasing activity.

Investment sales also had a strong year in 2024, surpassing 2023’s total volume by the third quarter. Q4 2024 was particularly active, with $644 million in total transactions, well above any previous quarter in the year.