Denver

An overview of Cresa’s 2021 Diversity, Inclusion & Belonging initiatives.

After a decade of explosive growth, Denver's development pipeline has fallen off the list of top markets, on both a nominal basis and a percent of inventory. The projects that are coming online soon though could benefit from flight-to-quality trends as tenants are willing to pay top dollar for amenities that promote health and safety.

Surging rents and sustained demand in the Denver market have captured the attention of investors. Investors are willing to pay top dollar for newly delivered industrial product even without a tenant in place, allowing the buyer to capitalize on current market demand while avoiding potential construction risks brought on by supply chain issues. The addition of high-end industrial inventory is helping to drive investment prices higher and tighten cap rates.

Rachel Trice is a Senior Vice President, Finance in Cresa’s Denver office. With a background in consulting and banking, Rachel brings analytical thinking, structured problem solving and corporate finance experience to Cresa.

The Denver office market continues to feel the effects of the coronavirus pandemic. While 2021 ushered in widespread vaccinations and a return-to-office initiative for many businesses, headwinds from the delta variant, followed soon after by the omicron variant, have dampened momentum. Many employers have now pushed back a return to office.

Tenants are leasing industrial space at a record pace, and even with a booming supply pipeline, vacancies have compressed in recent quarters.

Vaccinations became widely available earlier this year, and with restrictions lifting across the city, workers began returning to the office.

The industrial sector has arguably emerged as the most resilient asset class in commercial real estate since the onset of the pandemic.