At 2007’s midpoint, metro Denver’s industrial real estate market continues to gain momentum, while the retail market faces some challenges.
The Denver area’s industrial market includes warehouses/distribution centers and flex space, which is a combination of warehouse and office space. Most of the new industrial construction is located along Interstate 70, particularly between Interstate 225 and the E-470 tollway.
The industrial market is seeing strong absorption of space, rising rents and construction of new space to meet increasing demand.
While strong metro-area retail sales are driving new construction of shopping centers, that development is slowing, according to the C&W report. Higher construction costs have been a big contributor to the slowdown, and the metro area’s residential slump also has had a dampening effect.