Denver Industrial Market Report Q4 2020

Like many parts of the country, the pace of Denver's job recovery has slowed somewhat. In July, the metro area added about 12,000 jobs after adding about 40,000 jobs in both May and June, according to the latest monthly data from the Bureau of Labor Statistics. The nonfarm unemployment rate dropped to about 8%, outperforming the national average, bolstering Denver's status as a consistent outperformer irrespective of the macro environment. Denver was also among the first metros to fully recover jobs lost from the Great Recession.

Initial unemployment claims in Colorado have climbed past 550,000 since mid-March as the pandemic has wrought economic damage across job sectors, specifically in retail, leisure and hospitality, and energy. But the latest weekly jobless claims suggest the worst is in the rearview mirror. In the week ending on June 6, just under 13,000 initial claims were filed for the second straight week. Continuing jobless claims as of May 23 were at about 245,000, down from over 265,000 in the prior week.

Coronavirus shutdowns have had less of a negative impact on the industrial sector than in the retail or office segments. Many industrial tenants conduct operations that are considered essential and are more likely to stay open amid widespread shutdowns. E-commerce and 3PL tenants have seen an uptick in activity consumers order from home during the pandemic. For example, Amazon leased 700,000 SF in Aurora in mid-March as part of its plan to hire an additional 175,000 workers across the U.S.