The Denver Commercial Real Estate Market

Denver commercial real estate players close more deals faster using Crexi's commercial real estate platform. Nationwide, investors and tenants eye Denver's commercial property market as an attractive investment option with promising fundamentals and a favorable return on investment. 

Crexi's tools enhance buyer and tenant workflows, allowing active property seekers to browse thousands of Denver properties and connect quickly with their representation. Brokers also harness Crexi's listing, lead management, and marketing suite to close deals in Denver and the surrounding cities quickly. 

Crexi's robust marketplace and powerful listing tools allow Denver agents and property seekers to quickly connect and find their ideal investment with a few clicks. As of this writing, Crexi has facilitated over $615 billion in property transactions and represented properties valued at more than $7 trillion total.

Crexi proudly supports Denver, Boulder, Lakewood, Aurora, and the surrounding regions as the fastest-growing online commercial real estate marketplace.

The State of Commercial Real Estate in Denver

Denver, often referred to as the Mile High City, is Colorado's capital and largest city. Nestled at the base of the Rocky Mountains, Denver is a central hub for commerce, culture, and transportation in the region. 

The metropolitan area includes counties such as Jefferson, Adams, Arapahoe, and Douglas, making it one of the largest and most dynamic urban centers in the United States. Prominent landmarks include the striking Denver Union Station, the modern architecture of the Denver Art Museum, and the bustling 16th Street Mall, which collectively contribute to the city's unique blend of historical charm and contemporary vibrancy.

The local economy is diverse and robust, driven by the aerospace, technology, healthcare, and finance sectors. Denver is home to several Fortune 500 companies, including Arrow Electronics and DaVita Inc., underscoring its significance as a thriving business environment. 

The city has experienced considerable economic and population growth in recent years, attracting an influx of young professionals and families alike. This growth has spurred significant commercial real estate development in Denver, with numerous mixed-use projects transforming the skyline and urban landscape.

Denver Regional Breakdown

Over the past decade, Denver and its metropolitan population have grown substantially, with thousands of new residents moving to the region each year. This trend has been fueled by a flourishing job market, vibrant cultural scene, and high quality of life, making it a magnet for young professionals and families.

• The Denver metropolitan area has added over 430,000 residents since 2010, for a growth rate of 15%.
• The population of the Denver-Aurora-Lakewood metro area is nearly 3 million, according to data on CensusReporter.org.
• Denver is the 19th most populous city in the US and the largest in the Colorado Front Range.
• The median age is 37.3, a little less than the figure in the US.
• The per capita income is $54,363, and the median household income is $98,975; both figures are about 30% greater than in the US.
• Over 50% of households have an income of $100,000 or more.

Denver Job Market

Denver's economy is witnessing robust growth and diversity, with key industries, including aerospace, technology, healthcare, and finance, playing pivotal roles. Major employers such as Lockheed Martin, Amazon, and Comcast have established significant operations in the area, contributing to a dynamic job market. 

The city's strategic initiatives, including tax incentives and infrastructure investments, have further strengthened its economic foundation, attracting a wide array of businesses and fostering innovation. Additionally, Denver's burgeoning tech scene and collaborative business environment have positioned it as a leading hub for startups and entrepreneurial ventures, driving ongoing economic expansion and job creation.

• According to economic data from the St. Louis Fed, Denver-Aurora-Lakewood's GDP is nearly $289 billion, growing by 43% over the past ten years.
• The employed population of Denver is 1.64 million, increasing by nearly 3% year-over-year, based on information from DataUSA.io.
• The unemployment rate is 3.5%, as reported by the US Bureau of Labor Statistics (April 2024).
• Major employers in Denver include the Denver International Airport, HealthONE Corporation, Lockheed Martin, Centura Health, CenturyLink, Kaiser Permanente, United Airlines, and Wells Fargo.
• Nine Fortune 500 companies, including Ball Corporation, Dish Network, Level 3, Newmont Mining, Arrow Electronics, and Western Union Company, have headquarters in the metropolitan area.
• Target industries include advanced manufacturing, aerospace, bioscience, creative industries, defense and homeland security, energy and natural resources, and transportation and logistics.
• WalletHub ranks Denver as the 15th best city for jobs in the US based on criteria such as job opportunities, employment growth, and monthly average starting salary.
• Major commercial real estate projects reshaping the Denver skyline include new office spaces, multifamily housing, and hospitality ventures set to open throughout the year.
• Denver is home to the University of Colorado Denver, the Metropolitan State University of Denver, and the University of Denver.
• Nearly 50% of residents hold a bachelor’s degree or an advanced degree, about 1.4 times the rate in the US.
• Denver boasts a robust transportation infrastructure, with major highways such as I-25 and I-70 and the Denver International Airport (DEN). It is strategically located within a day's drive from metropolitan areas such as Salt Lake City and Albuquerque.

Denver Industrial Market

Denver's industrial market is experiencing a rise in vacancy rates for the fifth consecutive quarter, driven mainly by the influx of speculative new construction. Despite this upward pressure on vacancies, the overall increase over the past few years has been relatively modest, reflecting strong demand in the sector. However, with substantial speculative construction still in the pipeline and a decrease in leasing activity, vacancy rates are expected to continue rising throughout the first half of the year, accompanied by a slight decline in metro-wide asking rental rates.

Market overview (Cushman & Wakefield Q1 2024 Denver Industrial Report)

• Inventory: 268,845,988 SF
• Vacancy rate: 7.5%
• Net absorption: 246,477 SF (Q1 2024)
• Under construction: 5,774,681 SF
• Leasing activity: 1,533,955 SF
• Key leases by tenant: Conagra Brands, Kratos Industries, Xcimer Energy
• Largest submarkets: Airport, North Central, Northwest, Southeast

Crexi Insights

These are the most recent Denver industrial lease and sales trends from Crexi Insights (as of July 2024):

For Lease (active)

• Asking rate/SqFt (median): $12 per year
• Median SqFt/listing: 7,129
• Days on market: 142
• Total listings on Crexi: 404 spaces

For Sale (active)

• Median asking price: $2.59 million
• Price/SqFt: $206
• Asking cap rate: 6.3%
• Days on market: 138
• Total listings on Crexi: 129

Sales Comps (past 12 months)

• Median sold price: $2.15 million
• Sold price/SqFt: $159
• Total sales volume: $1.76 billion
• Sold cap rate: 5.6%
• Median SqFt sold/transaction: 15,400
• Total SqFt sold: 4.64 million 
• Days on market (median): 193

Find Denver industrial space for lease.

Denver Office Market

Denver's office market is experiencing mixed trends, with sublease availability decreasing for the fourth consecutive quarter and a slight reduction in the development pipeline. However, the market faces challenges as negative net absorption continues to rise, with leasing activity slightly decreasing and total vacancy rates increasing significantly year-over-year. Despite these hurdles, average direct asking rents saw a modest increase, indicating some strength in the market.

Market overview (CBRE Denver Office Figures Q1 2024)

• Inventory: 121,505,791 SF
• Vacancy rate: 20.4%
• Net absorption: -454,420 SF (Q1 2024)
• Under construction: 1,817,402 SF
• Key lease transactions by tenant: Janus Henderson Investors, BAE Systems, Ring Central, OneFlight International 
• Largest submarkets: Downtown, Northwest, West, Colorado Boulevard/Midtown

Crexi Insights

For the latest updates on the Denver office market, turn to Crexi Insights. Here is the detailed information on recent sales and leasing trends as of July 2024:

For Lease (active)

• Asking rate/SqFt (median): $22 per year
• Median SqFt/listing: 2,459 SF
• Days on market: 496
• Total listings on Crexi: 1,706 spaces

For Sale (active)

• Median asking price: $1.6 million
• Price/SqFt: $317 
• Asking cap rate: 4.4%
• Days on market: 168
• Total listings on Crexi: 131

Sales Comps (past 12 months) 

• Median sold price: $1.05 million
• Sold price/SqFt: $203
• Total sales volume: $152 million
• Sold cap rate: 5.6%
• Median SqFt sold/transaction: 5,301 SF
• Days on market (median): 166

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Denver Retail Market

The retail market in Denver is thriving, marked by historically low availability rates and a resilient consumer base, despite concerns about a softening economy and slower population growth. Leasing activity remains robust, driven by national chains and experiential tenants, while new construction is limited, primarily consisting of freestanding build-to-suits. Although retail rents have seen minimal growth, the market benefits from strong fundamentals, with out-of-state buyers continuing to seek well-anchored assets in high-growth areas.

Market overview (Hoff & Leigh Denver Retail Market Report Q1 2024) 

• Inventory:  165,403,753 SF
• Vacancy rate: 4.6%
• Deliveries: 22,242 SF
• Net absorption:  106,251 SF (Q1 2024)
• Under construction: 313,429 SF
• Top lease transactions by tenant: Malibu Jack’s, Floor & Decor, Heritage Christian Center, O’Reilly Auto Parts
• Largest submarkets: West, Northwest, Central, Northeast

Crexi Insights

Denver retail lease and sales trends from Crexi Insights (as of July 2024):

For Lease (active)

• Asking rate/SqFt (median): $25 per year
• Median SqFt/listing: 2,614 SF
• Days on market: 386
• Total listings on Crexi: 993 spaces

For Sale (active)

• Median asking price: $2.46 million
• Price/SqFt: $406
• Asking cap rate: 6.2%
• Days on market: 137
• Total listings on Crexi: 185 

Sales Comps (past 12 months)

• Median sold price: $800,000
• Sold price/SqFt: $244
• Total sales volume: $530 million
• Sold cap rate: 5.6%
• Median SqFt sold/transaction: 2,040 SF
• Days on market (median): 152

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Denver Multifamily Market

The Denver multifamily market is experiencing a slight increase in overall vacancy rates yet remains stable compared to historical averages. While average effective rents saw a minor quarterly decline, they have risen year-over-year. The market continues to see high development activity with numerous units under construction and elevated completions, while strong net absorption highlights sustained demand. Transaction volumes are increasing, indicating growing investor interest despite being below pre-pandemic levels.

Market overview (CBRE Denver Multifamily Figures Q1 2024)

• Total housing units: 1,291,034
• Multi-unit inventory: 368,400 units
• Vacancy rate: 6.1%
• Average asking rent: $1,891
• Deliveries: 3,156 (Q1 2024)
• Net absorption: 2,546 
• Under construction: 33,185 units in 128 projects
• Notable projects: Skyline at Highlands – 530 units in Central Denver, AMLI 8th & Broadway – 366 units in Central Denver, Keene at the District – 305 units in South Denver
• Largest submarkets: Five Points/Capitol Hill/Cherry Creek, Downtown/Highlands/Lincoln Park, Northeast Denver, South Denver/Englewood

Crexi Insights

Here are the most recent insights on the Denver multifamily market from Crexi (as of July 2024):

For Sale (active)

• Median asking price: $1.99 million
• Price/SqFt: $327
• Price/Unit: $233,000
• Asking cap rate: 5.5%
• Days on market: 92
• Total listings on Crexi: 95

Sales Comps (past 12 months)

• Median sold price: $469,000
• Sold price/SqFt: $202
• Sold price/unit: $410,000
• Total sales volume: $15.9 billion
• Sold cap rate: 5.6%
• Total SqFt sold: 2.35 million
• Days on market (median): 125

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Get more in-depth Denver market data with Crexi Intelligence.