industrial market report · 2020. 6. 25. · overview denver industrial 6.2 m 2.9 m 5.3% 1.4% 12 mo...

Q4 2019

PREPARED BYBrandon Langiewicz,Partner

OUR NETWORK IS YOUR EDGE.

All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should carefully verify each item of information contained herein.

Hoff & Leigh | 2700 S Broadway #307 | Denver, CO 80113 | 720.572.5187 office www.hoffleigh.com/denver

INDUSTRIAL MARKET REPORT

Denver, CO


Market Key Statistics 2

Leasing 3

Rent 8

Construction 10

Under Construction Properties 12

Sales 14

Sales Past 12 Months 15

Economy 17

Market Submarkets 19

Supply & Demand Trends 23

Rent & Vacancy 25

Sale Trends 27

Denver Industrial

1/8/2020Copyrighted report licensed to Hoff & Leigh, Inc. - 689708.

Denver Industrial

OOvveerrvviieewwDenver Industrial

6.2 M 2.9 M 5.3% 1.4%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

A confluence of events has turned Denver into one of themost active industrial markets in the country. Robustdemand in this regional market with a strong localeconomy is stemming from the growth of retail sales,employment, and industrial production in the metro areaand the greater Colorado region. Furthermore, theemergence of the marijuana industry's presence with thepassing of Amendment 64 in November 2012 created anadditional demand driver, with new and relativelyunsophisticated tenants operating with entirely differentprofit margins.

Vacancies remain below the long-term average evenwith annual deliveries reaching a cyclical high well beforethe end of the year. More than 6 million SF has come

online through October, and about 4 million SF is in thenear-term pipeline.

Industrial rents are around 60% above the peak of theprevious cycle, and rents continue to grow above thelong-term average. However, rent gains have noticeablymoderated from outsized figures in recent years, whenthe market routinely posted annual gains of more than7%.

Investors remain enthusiastic about Denver's industrialfundamentals following record-setting sales volume lastyear. Nearly $1.2 billion worth of assets traded enteringthe final quarter, and pricing continues to climb upward.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability Rate Net AbsorptionSF Deliveries SF Under

Construction

$8.775.8%163,286,377Logistics 9.8% 188,807 0 4,601,026

$10.373.8%49,276,493Specialized Industrial 6.1% (52,183) 0 646,000

$13.205.0%34,388,016Flex 6.6% (36,540) 0 325,000

$9.695.3%246,950,886Market 8.7% 100,084 0 5,572,026

ForecastAverage

HistoricalAverage12 MonthAnnual Trends Peak When Trough When

6.4%6.7%1.2%Vacancy Change (YOY) 10.1% 2004 Q2 3.3% 2015 Q3

2,332,2082,067,8972.9 MNet Absorption SF 5,455,610 2014 Q4 (1,846,263) 2003 Q3

3,931,0052,907,1816.2 MDeliveries SF 7,030,529 2019 Q3 133,207 2011 Q4

0.8%2.8%1.4%Rent Growth 9.4% 2015 Q1 -4.5% 2003 Q3

N/A$730.5M$1.7 BSales Volume $1.8B 2019 Q4 $215.0M 2010 Q1


Page 2

Denver IndustrialOverview

LLeeaassiinnggDenver Industrial

After plummeting to an all-time low of about 5% in mid-2015, the logistics availability rate has steadily trendedupwards, edging near 10% in 2019. The uptick in theavailability rate largely comes down to increased levelsof speculative development, which by several metrics isat cyclical peaks.

About 75% of the pipeline is logistics space, comprisedof the warehouse and distribution industrial subtypes.There was 3.1 million square-feet of available underconstruction logistics space early in the fourth quarter of2019, more than twice the year-end 2017 level. Tenants,particularly those in search of larger spaces have moreoptions (and in more parts of the metro) than they havehad in years.

The flex availability rate was right around 6.5% enteringthe final quarter of 2019, a new cyclical low. Speculativeflex development remains minimal, and this segment ofthe market looks poised for a continuation of tightconditions in the near-term.

Demand has been concentrated in new big boxinventory, with logistics tenants leading the way. Safilo'srecently moved into 310,000 SF of newly built space atPrologis Park 70 in the SW DIA/Pena Blvd submarket.Nearby, Sealy Mattress occupied 290,000 SF of logisticsspace in a new building in 19Q4.

The marijuana industry has been an important contributorto the industrial market, but the demand impact has been

concentrated in the light industrial segment. With thepassing of Amendment 64 in November 2012, marijuanabecame legal in Colorado, (recreational sales began atthe start of 2014) and with the prior passing of House Bill1284 medical marijuana dispensaries were required togrow 70% of the product they sell, a threshold manyweren’t meeting before this legislation passed. As aresult, from 2013–15 grow facilities became an importantsource of demand in the market, with estimates of theirfootprint now between three million and four million SF.With caps on the number of producers and sellers, theyare no longer acting as a continued outsized demandcatalyst. These new business operations createddemand for more locally oriented and potentially olderproduct, as evidenced by the extraordinarily tight marketfor smaller warehouses. Grow spaces do not typicallyneed more than 5,000 to 20,000 SF, and low clearheights are not a problem.

The introduction of a new breed of tenants via marijuanalegalization created a demand shock on the order ofabout a 1.5% to 2% increase in occupied space. Whilenot a staggering number, the vast majority of thatdemand occurred in a narrow timeframe, around andbefore the start of commercial sales at the start of 2014.In a market that was already getting tight prior to thestart of 2014 (and where speculative development wouldnot take off in earnest until later in the cycle), this wasenough to squeeze the market to historically tightconditions, an environment where industrial owners hadunprecedented pricing power when leases came to term.


Page 3

Denver IndustrialLeasing


NET ABSORPTION, NET DELIVERIES & VACANCY

VACANCY RATE


Page 4



AVAILABILITY RATE


Page 5



12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

SW DIA/Pena Blvd Ind 353,500 0 0 0 0 0 353,500Southern Glazer's

DIA Ind 540,931 189,097 0 0 0 0 320,903Nexus at DIA

SW DIA/Pena Blvd Ind 508,428 198,466 0 0 0 0 309,962ProLogis Park 70

SW DIA/Pena Blvd Ind 289,113 0 0 0 0 0 289,113Tower Business Center Building 1

DIA Ind 266,240 0 33,626 0 0 0 259,06376 Commerce Center

SW DIA/Pena Blvd Ind 245,847 0 0 0 0 0 245,847Eastpark 70 (1)

SW DIA/Pena Blvd Ind 155,775 0 0 0 0 0 155,77518245 E 40th Ave

Broomfield County Ind 152,761 0 0 0 0 0 152,76116205 Sheridan Pky

SW DIA/Pena Blvd Ind 220,247 75,869 0 0 0 0 144,378Eastpark 70 (2)

SW DIA/Pena Blvd Ind 522,271 0 140,653 0 0 0 140,653Majestic Commercenter

Northwest Denver Ind 145,000 0 0 0 0 0 132,2529675 W 108th Cir

SW DIA/Pena Blvd Ind 290,147 66,678 0 0 0 0 128,405Smith Road Commerce Center

SW DIA/Pena Blvd Ind 140,040 0 0 0 0 0 127,72813100-13300 E 38th Ave

SW DIA/Pena Blvd Ind 278,812 0 0 0 0 0 126,89020101 E 36th Dr

SW DIA/Pena Blvd Ind 199,410 0 0 0 0 0 117,28314200 E Moncrieff Place

Upper North Central… 110,562 0 0 0 0 0 110,5624650 Steele St

Commerce City Ind 166,345 66,962 0 0 0 0 95,421Prologis Park Central

4,585,429 597,072 174,279 0 0 0 3,210,496Subtotal Primary Competitors242,365,457 12,382,806 (74,195) 0 0 0 (263,369)Remaining Denver Market

246,950,886 12,979,878 100,084 0 0 0 2,947,127Total Denver Market


Page 6



TOP INDUSTRIAL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

18701 E 38th Ave SW DIA/Pena Blvd 289,113 Sealy Mattress Manufactu… JLL Newmark Knight FrankQ3 19

10000 E 56th Ave * East I-70/270 261,027 HD Supply Facilities Maint… Colliers International CBREQ4 19

3525 Carder Ct Highlands Ranch 169,590 Terumo Newmark Knight Frank Stream Realty Partners…Q4 19

18245 E 40th Ave SW DIA/Pena Blvd 155,775 New Age Beverages Newmark Knight Frank Unique Properties, Inc.Q1 19

3225 N Himalaya Rd SW DIA/Pena Blvd 140,653 - CBRE Majestic Realty Co.Q4 19

13100-13300 E 38th Ave SW DIA/Pena Blvd 140,040 Rocky Mountain Foods - Michael Bloom Realty…Q1 19

20101 E 36th Dr SW DIA/Pena Blvd 139,121 RK Mechanical Cushman & Wakefield Cushman & WakefieldQ1 19

3155-3199 S Platte River Dr * Lower South Central 135,779 Goodwill - Colliers InternationalQ1 19

13331-13333 E 37th Ave SW DIA/Pena Blvd 126,123 Howard Logistics - Michael Bloom Realty…Q2 19

14200 E Moncrieff Pl SW DIA/Pena Blvd 117,283 Beacon Sales JLL Newmark Knight FrankQ2 19

13100 E 39th Ave SW DIA/Pena Blvd 114,245 Echosphere, LLC CBRE Cushman & WakefieldQ4 19

4650 Steele St Upper North Central 110,562 City and County of Denver - NAI Shames MakovskyQ3 19

11380 Reed Way Broomfield County 107,455 MKS Instruments, Inc. Newmark Knight Frank CBREQ3 19

4300 Oneida St Quebec St 105,411 National Wood Products - -Q3 19

11351 E 45th Ave Cent E I-70/Montbello 92,244 Ball Metal Beverage Cont… - Colliers InternationalQ4 19

22700 E I-76 Frontage Rd DIA 91,997 Walmart - Newmark Knight FrankQ3 19

3503 N Windsor Dr SW DIA/Pena Blvd 85,253 Steelcase NAI Shames Makov… Majestic Realty Co.Q3 19

6150 Downing St Commerce City 79,840 Amazon - Cushman & WakefieldQ2 19

12900 E Smith Rd SW DIA/Pena Blvd 78,405 Believe Productions Newmark Knight Frank CBREQ2 19

10432-10498 E 49th Ave East I-70/270 73,625 Bimbo Bakeries - Newmark Knight FrankQ3 19

445 Bryant St Lower Central 61,705 Grainger - CBRE;First Industrial R…Q4 19

6770-6880 Brighton Blvd * Commerce City 59,924 SRS Roofing - Newmark Knight FrankQ1 19

12000 E 45th Ave Cent E I-70/Montbello 58,940 Rocky Mountain Furniture - Newmark Knight FrankQ4 19

6050 Washington St Commerce City 58,113 VF Corporation - Cushman & WakefieldQ4 19

14603 E Moncrieff Pl SW DIA/Pena Blvd 57,142 GE Johnson Construction - CBREQ2 19

6030 Washington St Commerce City 54,317 CSC ServiceWorks, Inc. CBRE Cushman & WakefieldQ3 19

14501-14551 E Moncrieff Pl SW DIA/Pena Blvd 53,200 Highland Cabinetry - Colliers InternationalQ2 19

14303 E Moncrieff Pl SW DIA/Pena Blvd 52,483 Grand Worldwide Logistics - CBREQ1 19

9650-9690 E 40th Ave * Quebec St 52,235 BSG Craft Brewery - Newmark Knight FrankQ3 19

221 N Kuner Rd DIA 52,219 - - CBREQ4 19

12900 E Smith Rd SW DIA/Pena Blvd 50,004 GT-Lite - CBREQ2 19

5775 Broadway Northwest Denver 49,749 - Colliers International Ringsby RealtyQ3 19

6490 E Smith Rd Quebec St 49,500 - - CBREQ1 19

21055 Westgate Rd West Denver 46,071 Boulder Botanical & Biosc… - Newmark Knight FrankQ1 19

4525 Ironton St Cent E I-70/Montbello 41,770 Lucy Sky Dispensary - JLLQ2 19

19700 E 23rd Ave SW DIA/Pena Blvd 40,808 Stephen Gould Corporation JLL CBREQ3 19

19700 E 23rd Ave SW DIA/Pena Blvd 40,678 ATOSA Catering Equipment CBRE CBREQ3 19

935 W 45th Ave Upper North Central 40,000 Dawn Foods - Gruber Commercial Re…Q3 19

7151 S Blackhawk Centennial 40,000 - - Colliers InternationalQ3 19

10035 E 40th Ave Quebec St 39,238 Francini Inc NAI Shames Makov… Etkin Johnson Real Est…Q4 19

*Renewal


Page 7


RReennttDenver Industrial

Rents have skyrocketed in Denver this cycle: Theaverage asking rent has surged past last cycle's peak bynearly 60%, a growth rate that trails behind only SanFrancisco and San Jose in the U.S.

Today, conditions are still relatively tight, but developershave stepped on the gas and put some pressure on rentgains. Nearly 6 million SF has delivered through the first10 months of 2019, and at least 4 million SF remains inthe construction pipeline. Speculative space has reacheda cyclical peak--more than 3 million SF of space underconstruction was available for lease entering the finalquarter of the year. Elevated construction levels haveplayed a role in moderating rent growth in 2019, butannual gains still remain well above the long-termaverage.

Denver's outperformance against the national averagethis cycle comes in some part due to marijuana tenants,which created a 1-2% demand shock in an extremelyshort timeframe, just as the market was alreadyapproaching capacity (and before speculative

development had started in earnest). But Denver'sstrength also speaks to a dynamic and growing localeconomy with robust demographic trends.

Moreover, Denver acts as the primary distribution hub forother Front Range metros that are seeing explosivegrowth in their own right, such as Fort Collins andGreeley, which have seen off-the-charts population andjob growth.

On average, logistics demand has soared by just over3% annually since 2012 (about two million SF per-year).Speculative development did not begin to hit the marketin earnest until 2016, and a historically tight marketgranted industrial owners with extraordinary pricingpower. While speculative development has providedsome relief for large- and medium-sized warehouse anddistribution tenants, tenants in search of smaller spacescontinue to face an environment with few options, andowners who will often retain an atypically high amount ofpricing power.

MARKET RENT GROWTH (YOY)


Page 8

Denver IndustrialRent

RReennttDenver Industrial

MARKET RENT PER SQUARE FOOT


Page 9

Denver IndustrialRent

CCoonnssttrruuccttiioonnDenver Industrial

Development is at cyclical highs across several metrics.With two months left in the year, 2019 is already arecord-setting year for deliveries with nearly 6 million SFcoming on line. Plenty of projects remain in the near-term pipeline with at least 4 million SF underway.

Moreover, the volume of speculative development(virtually all of which is logistics space) has soared tonew heights. There was 3.1. million SF of availableunder construction logistics space late in 2019, followinga string of major speculative groundbreaks in 2018. Thisis about one million SF more available underconstruction logistics space than any point in the cycleprior to 2018.

Within this development upswing, two notable trendshave emerged.

First, developers are moving forward with fullyspeculative projects that are larger than what was typicalearlier in the cycle.

Second, major speculative developments are going upoutside of the East I-70/Denver International Airportcorridor, where much of the initial development this cyclewas concentrated.

The shift towards massive, fully speculative projectsbegan in earnest in mid-2017, when Majestic Realtybroke ground on building 15 at its 1,500-acre MajesticCommerce Center. Building 15, a 709,000-square-footdistribution center dubbed the ‘Big Bomber,’ is the largestspeculative logistics development ever constructed inDenver. The building remained fully available shortlyafter its June 2018 completion.

In 18Q3, Prologis broke ground on its largest speculativedevelopment to-date, a 508,000-SF distribution buildingat ProLogis Park 70.

Prologis, whose development this cycle prior to 2018 hadlargely been built-to-suits, separately broke ground onthree fully speculative buildings containing a combined630,000 square feet at a new industrial park calledProLogis Park Central.

Prologis Park Central is in Commerce City, close to the I-

25/I-76 intersection. This ties into the second notabledevelopment trend: Developers are moving ahead withprojects along I-25 and I-76—both immediately south ofthe I-25 intersection in Commerce City, and separatelyin far northeast metro Denver near the city of Brighton.With much of the land along the East I-70/DenverInternational Airport spoken for, the I-25 and I-76corridors may offer more-feasible developmentopportunities for new entrants.

In April 2018, Minneapolis-based Hyde Developmentbroke ground on the first 266,000 square-foot building atthe I-76 Commerce Center development in Brighton,located in an enterprise zone. That fully speculativebuilding is the first phase of a planned 1.8 million square-foot industrial park, by far the largest development of thisnature in the Brighton area.

Geographically, development in northern Metro Denverand along the I-76 corridor makes sense. Whilesomewhat further removed from population centers inMetro Denver, immediate proximity to I-25 grants accessto the fastest growing corridor of the Colorado FrontRange. Namely, Metro Denver’s northern suburbs housesome of the fastest-growing cities in the metro.

And just north of Metro Denver, growth is robustthroughout the Northern Colorado I-25 corridor. Citieslike Firestone, Erie, and Frederick (just north of MetroDenver in far southwest Weld County) each sawpopulation growth exceeding 22% over the past fiveyears. Vast amounts of open land and significantongoing residential construction prime this part ofColorado for a continuation of outsized growth.

Another nearly untouched part of the metro is about tosee a speculative development: In September 2018,Santa Monica, CA-based Cale Enterprises announcedplans to imminently break ground on two buildings(59,000-SF and 82,000-SF) in Arvada, near theintersection of Ridge Rd and Robb St. The developmentwill be the first larger speculative project in this part ofthe metro in over 15 years, and is expected to completein the third quarter of 2019. The buildings will be divisibledown to about 10,000 SF, a lower threshold than muchof what has been constructed this cycle.


Page 10

Denver IndustrialConstruction

CCoonnssttrruuccttiioonnDenver Industrial

DELIVERIES & DEMOLITIONS

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 SW DIA/Pena Blvd 7 2,495 356,49251.6% 5 93,1971,288 12 DIA 4 910 227,5600% 6 40,4930 33 Centennial 4 557 139,2920% 6 38,4650 64 North Denver 3 488 162,73355.1% 4 36,856269 55 West Denver 5 331 66,20890.9% 3 41,512301 86 Outlying Arapahoe Cty 1 250 250,000100% 1 68,432250 27 East I-70/270 1 209 209,0780% 6 43,2460 48 Northwest Denver 2 142 71,0900% 6 27,0360 79 Southwest C-470 1 50 50,0000% 6 21,2680 9

10 Broomfield County 1 35 35,000100% 1 32,33835 10All Other 5 104 20,73643.1% 23,81845

Totals 34 5,572 163,88339.3% 31,6002,188


Page 11

Denver IndustrialConstruction

UUnnddeerr CCoonnssttrruuccttiioonn PPrrooppeerrttiieessDenver Industrial

34 5,572,026 2.6% 39.3%Properties Square Feet Percent of Inventory Preleased

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Oct-2019E 32nd & Picadilly RdShamrock Foods

900,000 1 Dec-2020Majestic Realty Co.Shamrock Food Company

1

Oct-201920500 E Colfax AveStafford Logistics Cente…

594,138 1 May-2020NorthPoint DevelopmentMonica Sell

2

Mar-20192400 E 64th StKarcher N America

380,000 - Feb-2020SunCap Property GroupKarcher North America, Inc.

3

Sep-201922600 E I-76 Frontage RdBuilding 4

352,240 1 May-2020Hyde DevelopmentHyde Development

4

Jun-2019112th Avenue & Highway 85Building D

330,250 1 Jul-2020Brennan Investment GroupBrennan Investment Group

5

Mar-20191041 E 71st Ave

269,000 1 Mar-2020-TruStile Doors

6

Jan-201812257 S Wadsworth BlvdLockheed Martin

266,000 - Apr-2020-Lockheed Martin Corporation

7


Page 12

Denver IndustrialUnder Construction Properties

UUnnddeerr CCoonnssttrruuccttiioonn PPrrooppeerrttiieessDenver Industrial

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jan-201823505 E 6th AveJ.P. Morgan Chase Data…

250,000 - Feb-2020-JPMorgan Chase & Co.

8

Aug-20195303 Havana StPrologis Park Stapleton…

209,078 1 Nov-2020Prologis, Inc.Prologis, Inc.

9

Mar-201926100-26120 E 68th AveJAG Logistics Center at…

188,000 1 Mar-2020J.A. Green DevelopmentJ.A. Green Development

10

Dec-2019Salida StBuilding 25

170,400 1 Jul-2020Pauls CorporationPauls Corporation

11

Dec-20198452 Highfield PkyBuilding 8

159,940 - Dec-2020-Bradbury Properties Company, Inc.

12

Sep-20197901 S Potomac StBuilding 2

147,252 1 May-2020The Opus GroupThe Opus Group

13

Aug-201913575 E 37th Ave

142,104 1 Mar-2020Karis Capital LLCAEW Capital Management

14

Dec-20198450 Highfield PkyBuilding 9

131,706 1 Dec-2020-Bradbury Properties Company, Inc.

15

Jun-2019112th Avenue & Highway 85Building B


16

Dec-2019Salida StBuilding 24

120,800 1 Jul-2020Pauls CorporationPauls Corporation

17

Sep-20197955 S Potomac StBuilding 1

118,270 1 May-2020The Opus GroupThe Opus Group

18

May-2019W 144th & I-25Building 1

114,700 1 Mar-2020United PropertiesUnited Properties

19

Jun-2019112th Avenue & Highway 85Building A


20

Apr-2019W 144th & I-25Building 2

104,500 1 Mar-2020United PropertiesUnited Properties

21

Aug-2019Ridge Rd & Robb StMountain Gateway - Buil…

82,470 1 Jun-2020Cale Enterprises LLCCity of Wheat Ridge

22

Aug-2019Ridge Rd & Robb StMountain Gateway - Buil…

59,710 1 Jun-2020Cale Enterprises LLCCity of Wheat Ridge

23

Oct-20195361-5363 S Alkire CirBuilding 6-8

50,000 1 Aug-2020Ojala & Company-

24

Feb-20195495 W 6th AveCoated Metals

35,000 1 Mar-2020--

25

Feb-20192364 Industrial Ln

35,000 - Feb-2020--

26

Apr-20195285 Joliet StLeopold Bros. Malt House

30,000 3 Feb-2020-Leopold Brothers

27

Jul-201918540 Apache Dr

27,753 1 Mar-2020--

28


Page 13

Denver IndustrialUnder Construction Properties

SSaalleessDenver Industrial

Investment activity has retained much of the momentumfrom record year in 2018. Sales volume is on pace toexceed $1.5 billion for the second consecutive year, andtransactional pricing has climbed more than 15% (butonly about 4% based on CoStar’s same-store series).Even with the rise in the market’s price per SF, cap rateshave remained relatively flat.

Major out-of-state players seeking newly built assetshave made the biggest splashes thus far in 2019. InJune, Dallas-based Clarion Partners acquired GatewayPark from locally-based Pauls Real Estate Investmentsfor approximately $57.5 million ($95/SF). The two-property portfolio in the SW DIA/Pena Blvd submarketconsisted of 600,000 SF of industrial space anddelivered in 2019. Both buildings were fully vacant and inshell condition.

In September, LaSalle Investment Managementpurchased the Centercore Distribution Center, built in2018, from Huntington Industrial Partners for roughly$45.3 million ($182/SF). Two buildings totaling 250,000SF were included in the sale. Both of the NorthwestDenver properties were fully leased to five tenants,including National Tire Wholesale, Gallery Carts andMissouri River Plastics. The reported cap rate wasaround 4.5%.

Panasonic's state-of-the-art facility in the SW DIA/PenaBlvd submarket traded in July. Nebraska-basedNewStreet Properties acquired the asset from locally-based Westfield Company for $22 million. The buildingincludes space for warehousing, assembly, research anddesign along with a two-story office. Panasonic leasesthe entire building, which completed construction in 2016.

SALES VOLUME & MARKET SALE PRICE PER SF


Page 14

Denver IndustrialSales

SSaalleess PPaasstt 1122 MMoonntthhssDenver Industrial

522 6.8% $128 9.5%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $100,000 $5,064,392 $2,391,404 $70,084,895

Price Per SF $13 $128 $149 $1,379

Cap Rate 4.0% 6.8% 6.7% 12.0%

Time Since Sale in Months 0.3 6.0 5.8 12.0

Property Attributes Low Average Median High

Building SF 960 38,069 15,243 553,757

Ceiling Height 8' 17'3" 16' 40'

Docks 0 5 1 100

Vacancy Rate At Sale 0% 9.5% 0% 100%

Year Built 1889 1977 1979 2019

Star Rating 2.1


Page 15

Denver IndustrialSales Past 12 Months

SSaalleess PPaasstt 1122 MMoonntthhssDenver Industrial

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 United Natural Foods, Inc.2013 553,757 0% $70,084,895 $127

17901 E 40th Ave9/26/2019 -

-2 Denver Business Center…1997 306,878 0% $49,488,902 $161

5301 Peoria St9/26/2019 -

-3 3900 Nome St1974 297,000 0% $44,114,273 $1499/26/2019 -

-4 18300 E 28th Ave2000 85,604 0% $39,000,000 $45611/4/2019 -

-5 Building 222019 419,060 100% $38,553,500 $92

18100 E 40th Ave6/7/2019 -

-6 Building B2019 169,590 100% $32,519,494 $192

3525 Carder Ct12/16/2019 -

-7 Bldg 12018 177,298 28.1% $32,508,186 $183

5775 Broadway9/16/2019 4.5%

-8 9410 Heinz Way2005 140,630 0% $22,250,000 $15811/4/2019 -

-9 PESCO Building2016 112,966 27.0% $22,000,000 $195

6144 N Panasonic Way7/11/2019 5.6%

-10 Denver Distribution Center1995 129,609 0% $20,901,489 $161

11500 E 53rd Ave9/26/2019 -

-11 Denver Distribution Center1985 151,485 0% $19,172,327 $127

14509 E 33rd Pl9/26/2019 -

-12 Building 232019 184,040 100% $18,956,100 $103

18000 E 40th Ave6/7/2019 -

-13 2555 W Midway Blvd1981 363,582 0% $18,750,000 $526/20/2019 -

-14 Bldg 22007 161,524 0% $17,951,950 $111

2460 Airport Blvd5/20/2019 -

-15 Building C2019 89,633 70.8% $17,310,027 $193

3395 Carder Ct12/16/2019 -

-16 7103 S Revere Pky1983 58,405 0% $16,890,000 $2891/14/2019 7.6%

-17 Denver Distribution Center1983 124,656 10.0% $15,776,781 $127

14704 E 33rd Pl9/26/2019 -

-18 Bldg 12001 103,565 0% $15,700,000 $152

11575 Main St8/6/2019 6.4%

-19 5120 Race Ct1972 124,500 0% $15,191,504 $1224/1/2019 7.0%

-20 3950 Nome St1974 101,775 0% $15,116,937 $1499/26/2019 -


Page 16

Denver IndustrialSales Past 12 Months

EEccoonnoommyyDenver Industrial

Although Denver’s overall employment growth has shownsigns of a slight slowdown along with the national index,the greater Denver area is adding tech jobs at anaccelerating pace. Employment in Professional, Scientific& Technical Services grew by more than 7% year-over-year as of November, one of the best growth rates in thecountry. Corporate expansions and relocations by techcompanies such as Amazon, Slack, and Conga aredriving employment gains as the war for talent rages onin a historically tight U.S. job market.

Denver has been frequently lauded as a destination foryoung, educated job seekers throughout this cycle, andcurrent labor conditions reinforce this proposition today.Headwinds could come from housing costs, which aredramatically higher today for both renters andprospective owners. While home prices continue to climbinto the stratosphere (albeit at a slower rate than thepeak years of this cycle), apartment rent growth hasmoderated alongside elevated levels of construction,which may provide a relief valve for those consideringthe metro for its otherwise robust employment prospects.

Along with a young, highly educated, and growing laborforce, the FasTracks transit expansion is expected to paydividends as additional lines connect downtown to NorthDenver, Aurora and the Denver International Airport, allin addition to an expansion to the southeast rail line.Healthcare, a major growth sector for years to come, isseeing major investment in the $1.3 billion VA hospital inAurora, the Denver Health Administration’s newheadquarters in South Midtown, and Catalyst’s 300,000-SF digital health facility in RiNo (Platte River Submarket).

Geographic isolation remains an economic liability insome respects. The geographic separation from largebusiness and financial centers makes locating acorporate headquarters here difficult for companies thatbenefit from proximity to suppliers, competitors,financiers, and customers, although firms that draw onDenver’s natural resources and brainpower have thrived.As a result, the metro has had to rely on its own brand ofspecialization in high-value-add industries likeengineering, energy, communications, and high tech todrive growth.

DENVER EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

-0.26%0.07%1.15%1.40%0.85%0.54%0.571Manufacturing

0.31%0.84%1.32%1.96%0.58%0.47%1.0276Trade, Transportation and Utilities

0.23%0.65%0.95%1.52%-0.15%-0.55%0.9138 Retail Trade

0.30%0.40%1.19%1.94%1.20%1.58%1.3113Financial Activities

0.66%0.96%0.05%1.42%0.64%1.80%0.9202Government

0.24%1.09%2.76%4.26%2.21%0.58%1.3110Natural Resources, Mining and Construction

0.61%0.94%2.14%3.36%2.41%1.56%0.8194Education and Health Services

0.87%1.37%2.73%3.59%1.99%3.35%1.3289Professional and Business Services

0.46%0.13%0.31%1.25%0.38%0.56%1.850Information

0.59%0.77%2.63%3.15%1.88%0.85%1.0171Leisure and Hospitality

0.21%0.84%1.14%2.53%1.57%2.44%1.062Other Services

Total Employment 1,536 1.0 1.53% 1.41% 2.59% 1.59% 0.89% 0.47%Source: Oxford Economics

LQ = Location Quotient


Page 17

Denver IndustrialEconomy

EEccoonnoommyyDenver Industrial

Source: Oxford Economics

YEAR OVER YEAR JOB GROWTH

DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 330,109,5632,978,915 1.2% 0.7% 1.7% 0.7% 1.2% 0.7%Households 121,498,0081,135,169 1.1% 0.5% 1.5% 0.6% 1.1% 0.6%Median Household Income $65,767$84,252 4.1% 4.0% 3.6% 2.7% 4.2% 4.2%Labor Force 163,925,5471,683,548 0.9% 0.6% 1.9% 0.7% 0.9% 0.5%Unemployment 3.7%3.0% -0.5% -0.1% -0.5% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


Page 18

Denver IndustrialEconomy

SSuubbmmaarrkkeettssDenver Industrial

DENVER SUBMARKETS


Page 19

Denver IndustrialSubmarkets


SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 Arapahoe Rd 45 0% 35 0 - - -4 0 0 0% -2 Aurora 2,715 1.1% 19 1 25 0.9% 13105 1 25 0.9% 153 Broomfield County 5,142 2.1% 16 1 35 0.7% 10159 3 400 7.8% 44 Cent E I-70/Montbello 18,140 7.3% 4 1 30 0.2% 11330 0 0 0% -5 Centennial 10,924 4.4% 9 4 557 5.1% 3284 6 230 2.1% 66 Clear Creek County 125 0.1% 32 0 - - -9 0 0 0% -7 Commerce City 13,026 5.3% 6 2 21 0.2% 14521 3 581 4.5% 38 Denver Tech Center 26 0% 37 0 - - -1 0 0 0% -9 DIA 9,394 3.8% 13 4 910 9.7% 2232 3 756 8.0% 2

10 East Hampden 148 0.1% 30 0 - - -8 0 0 0% -11 East I-70/270 19,028 7.7% 3 1 209 1.1% 7440 2 43 0.2% 1312 Elbert County 158 0.1% 29 0 - - -18 0 0 0% -13 Gilpin County 22 0% 38 0 - - -4 0 0 0% -14 Glendale 2,638 1.1% 20 0 - - -150 0 0 0% -15 Greenwood Village 7 0% 39 0 - - -1 0 0 0% -16 Highlands Ranch 1,774 0.7% 23 0 - - -49 3 345 19.5% 517 Inverness 2,410 1.0% 21 0 - - -54 0 0 0% -18 Lakewood 129 0.1% 31 0 - - -13 0 0 0% -19 Lower Central 8,320 3.4% 15 0 - - -354 0 0 0% -20 Lower North Central 9,554 3.9% 12 0 - - -430 0 0 0% -21 Lower South Central 8,519 3.5% 14 0 - - -546 0 0 0% -22 Meridian 700 0.3% 27 1 28 4.0% 1240 0 0 0% -23 Mid Central 4,303 1.7% 18 0 - - -273 1 30 0.7% 1424 Mid South Central 1,320 0.5% 25 0 - - -121 0 0 0% -25 North Denver 10,688 4.3% 10 3 488 4.6% 4290 4 213 2.0% 726 Northwest Denver 14,654 5.9% 5 2 142 1.0% 8542 2 147 1.0% 927 Outlying Adams Cnty 65 0% 34 0 - - -8 0 0 0% -28 Outlying Arapahoe Cty 753 0.3% 26 1 250 33.2% 611 0 0 0% -29 Outlying Douglas Cnty 37 0% 36 0 - - -4 0 0 0% -30 Park County 92 0% 33 0 - - -14 0 0 0% -31 Parker/Castle Rock 1,446 0.6% 24 0 - - -121 4 55 3.8% 1032 Quebec St 11,286 4.6% 8 0 - - -278 0 0 0% -33 Southeast C-470 1,789 0.7% 22 0 - - -84 0 0 0% -34 Southwest C-470 11,314 4.6% 7 1 50 0.4% 9532 1 50 0.4% 1135 SW DIA/Pena Blvd 38,024 15.4% 1 7 2,495 6.6% 1408 16 3,044 8.0% 136 Upper Central 442 0.2% 28 0 - - -40 0 0 0% -37 Upper North Central 9,984 4.0% 11 0 - - -433 2 48 0.5% 1238 Upper South Central 4,483 1.8% 17 0 - - -341 0 0 0% -39 West Denver 23,205 9.4% 2 5 331 1.4% 5559 4 208 0.9% 8


Page 20



SUBMARKET RENT

Growth

Market Rent

Per SFSubmarketNo.

12 Month Market Rent QTD Annualized Market Rent

RankRank GrowthRank

1 Arapahoe Rd -2.5%6 1.4% 9$13.88 42 Aurora -3.9%13 1.4% 10$12.60 143 Broomfield County -1.7%26 0.9% 30$10.41 34 Cent E I-70/Montbello -4.8%39 1.7% 4$6.91 335 Centennial -3.9%17 1.3% 13$12.07 136 Clear Creek County -5.0%4 1.1% 22$14.82 367 Commerce City -4.0%32 1.3% 15$9.62 188 Denver Tech Center -3.7%1 -1.5% 38$16.10 99 DIA -3.6%30 1.2% 17$9.98 8

10 East Hampden 3.4%8 -6.2% 39$13.59 111 East I-70/270 -7.0%36 1.6% 5$8.28 3712 Elbert County -4.0%23 0.4% 37$10.80 1513 Gilpin County -4.1%18 1.0% 26$11.96 2014 Glendale -4.1%21 1.2% 16$11.59 2515 Greenwood Village -4.1%7 1.2% 19$13.83 2116 Highlands Ranch -3.4%9 1.2% 20$13.48 617 Inverness 2.4%10 1.5% 7$13.19 218 Lakewood -4.1%20 1.3% 14$11.61 2319 Lower Central -4.6%34 1.1% 24$9.43 3120 Lower North Central -4.2%27 0.9% 31$10.20 2621 Lower South Central -4.1%29 0.9% 27$10.08 2422 Meridian -4.1%3 0.8% 34$14.91 1923 Mid Central -3.7%22 0.8% 33$10.97 1124 Mid South Central -11.0%19 0.9% 28$11.85 3825 North Denver -4.6%24 2.5% 1$10.79 3226 Northwest Denver -4.4%28 1.4% 8$10.09 2827 Outlying Adams Cnty -4.5%31 0.9% 29$9.82 2928 Outlying Arapahoe Cty -15.8%33 1.3% 12$9.56 3929 Outlying Douglas Cnty -4.1%5 1.2% 18$14.37 2230 Park County -4.0%12 1.3% 11$12.93 1631 Parker/Castle Rock -3.4%2 0.6% 35$14.98 532 Quebec St -4.9%37 1.8% 3$7.80 3433 Southeast C-470 -3.7%14 1.6% 6$12.57 1034 Southwest C-470 -3.8%15 1.1% 23$12.40 1235 SW DIA/Pena Blvd -4.9%38 2.1% 2$7.13 3536 Upper Central -3.5%11 0.6% 36$13.19 737 Upper North Central -4.5%35 1.2% 21$9.39 3038 Upper South Central -4.3%25 1.1% 25$10.58 2739 West Denver -4.0%16 0.8% 32$12.10 17


Page 21



SUBMARKET VACANCY & NET ABSORPTION

12 Month Net Absorption

Rank Construct. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Arapahoe Rd - - -0 0% --2 Aurora 160,022 5.9% 0.466,199 2.4% 9233 Broomfield County 550,055 10.7% 4.784,697 1.6% 8284 Cent E I-70/Montbello 905,156 5.0% -(451,460) -2.5% 39225 Centennial 718,504 6.6% 1.0152,785 1.4% 6246 Clear Creek County - - -3,060 2.4% 17-7 Commerce City 592,477 4.5% 0.4180,046 1.4% 4188 Denver Tech Center - - -0 0% --9 DIA 364,959 3.9% 0554,627 5.9% 217

10 East Hampden 22,808 15.5% -(21,798) -14.8% 323011 East I-70/270 717,211 3.8% -(369,985) -1.9% 381512 Elbert County 7,725 4.9% -5,321 3.4% 162013 Gilpin County - - -0 0% --14 Glendale 46,980 1.8% -(7,863) -0.3% 28415 Greenwood Village - - -0 0% --16 Highlands Ranch 372,532 21.0% 15.422,479 1.3% 123117 Inverness 80,998 3.4% -25,078 1.0% 101118 Lakewood - - -0 0% --19 Lower Central 381,883 4.6% -(75,292) -0.9% 361920 Lower North Central 219,323 2.3% -(33,067) -0.3% 34621 Lower South Central 293,640 3.4% -(186,209) -2.2% 371222 Meridian 14,083 2.0% -344 0% 19523 Mid Central 154,108 3.6% 1.913,418 0.3% 141424 Mid South Central 14,670 1.1% -(1,927) -0.1% 27125 North Denver 846,254 7.9% 1.2151,073 1.4% 72526 Northwest Denver 561,036 3.8% 0.624,123 0.2% 111627 Outlying Adams Cnty - - -0 0% --28 Outlying Arapahoe Cty 66,933 8.9% -(23,597) -3.1% 332629 Outlying Douglas Cnty - - -0 0% --30 Park County 1,130 1.2% -1,152 1.3% 18231 Parker/Castle Rock 187,641 13.0% -(53,204) -3.7% 352932 Quebec St 561,569 5.0% -(20,025) -0.2% 312133 Southeast C-470 63,342 3.5% -6,324 0.4% 151334 Southwest C-470 374,319 3.3% 3.414,764 0.1% 131035 SW DIA/Pena Blvd 3,940,663 10.4% 1.22,412,161 6.3% 12736 Upper Central 13,577 3.1% -(13,577) -3.1% 29837 Upper North Central 329,637 3.3% 0.3175,888 1.8% 5938 Upper South Central 130,312 2.9% -(18,350) -0.4% 30739 West Denver 286,331 1.2% 0.1289,943 1.2% 33


Page 22


SSuuppppllyy && DDeemmaanndd TTrreennddssDenver Industrial

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 2,253,476 0.9% 0.8%2,107,049 1.1263,141,0222023 2,412,386 0.9% 0.8%2,065,805 1.2260,887,5462022 2,723,105 1.1% 0.8%2,105,265 1.3258,475,1602021 4,051,957 1.6% 0.8%2,010,788 2.0255,752,0552020 4,749,212 1.9% 1.3%3,256,459 1.5251,700,098YTD 0 0% 0%100,084 0246,950,8862019 6,247,571 2.6% 1.2%2,939,052 2.1246,950,8862018 3,410,459 1.4% 1.3%3,012,918 1.1240,703,3152017 4,731,370 2.0% 2.0%4,832,267 1.0237,292,8562016 3,604,032 1.6% 0.9%2,082,299 1.7232,561,4862015 1,471,226 0.6% 0.7%1,544,180 1.0228,957,4542014 2,598,537 1.2% 2.4%5,455,610 0.5227,486,2282013 (2,626,776) -1.2% 1.0%2,284,710 -224,887,6912012 372,418 0.2% 1.1%2,529,437 0.1227,514,4672011 (329,711) -0.1% -0.4%(800,178) -227,142,0492010 (1,169,369) -0.5% 0.2%402,166 -227,471,7602009 322,277 0.1% -0.3%(796,435) -228,641,1292008 2,483,386 1.1% 0%39,079 63.5228,318,852

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND



2024 215,715 0.4% 0.1%29,070 7.450,938,8702023 230,957 0.5% 0.1%45,234 5.150,723,1552022 260,670 0.5% 0.1%75,649 3.450,492,1982021 273,780 0.5% -0.1%(53,906) -50,231,5282020 681,255 1.4% 0.4%202,001 3.449,957,748YTD 0 0% -0.1%(52,183) -49,276,4932019 843,769 1.7% 0.7%367,476 2.349,276,4932018 29,539 0.1% 0.1%56,426 0.548,432,7242017 (199,629) -0.4% -1.1%(545,088) -48,403,1852016 (155,964) -0.3% 0%19,403 -48,602,8142015 (90,919) -0.2% 0.2%88,181 -48,758,7782014 (146,589) -0.3% 0.3%156,965 -48,849,6972013 (2,618,010) -5.1% -1.7%(855,953) -48,996,2862012 58,175 0.1% 0.4%199,640 0.351,614,2962011 30,789 0.1% -1.0%(500,170) -51,556,1212010 (212,704) -0.4% 0%1,063 -51,525,3322009 (72,238) -0.1% 0.6%293,599 -51,738,0362008 (24,959) 0% -1.0%(521,594) -51,810,274


Page 23

Denver IndustrialSupply & Demand Trends

SSuuppppllyy && DDeemmaanndd TTrreennddssDenver Industrial

LOGISTICS SUPPLY & DEMAND



2024 1,923,856 1.1% 1.2%2,134,032 0.9176,952,4052023 2,059,493 1.2% 1.2%2,087,956 1.0175,028,5492022 2,324,847 1.4% 1.2%2,115,998 1.1172,969,0562021 3,633,755 2.2% 1.3%2,205,020 1.6170,644,2092020 3,724,077 2.3% 1.7%2,847,998 1.3167,010,454YTD 0 0% 0.1%188,807 0163,286,3772019 4,976,252 3.1% 1.3%2,195,075 2.3163,286,3772018 3,134,828 2.0% 1.6%2,550,307 1.2158,310,1252017 4,617,957 3.1% 3.3%5,080,577 0.9155,175,2972016 3,670,586 2.5% 1.4%2,040,688 1.8150,557,3402015 1,176,011 0.8% 0.4%573,415 2.1146,886,7542014 2,156,575 1.5% 2.8%4,010,445 0.5145,710,7432013 (145,547) -0.1% 1.7%2,427,625 -143,554,1682012 164,309 0.1% 1.2%1,740,162 0.1143,699,7152011 (323,424) -0.2% -0.6%(821,188) -143,535,4062010 (981,181) -0.7% 0.2%329,491 -143,858,8302009 100,734 0.1% -0.7%(1,038,435) -144,840,0112008 1,821,981 1.3% 0.2%227,515 8.0144,739,277

FLEX SUPPLY & DEMAND



2024 113,905 0.3% -0.2%(56,053) -35,249,7472023 121,936 0.3% -0.2%(67,385) -35,135,8422022 137,588 0.4% -0.2%(86,382) -35,013,9062021 144,422 0.4% -0.4%(140,326) -34,876,3182020 343,880 1.0% 0.6%206,460 1.734,731,896YTD 0 0% -0.1%(36,540) -34,388,0162019 427,550 1.3% 1.1%376,501 1.134,388,0162018 246,092 0.7% 1.2%406,185 0.633,960,4662017 313,042 0.9% 0.9%296,778 1.133,714,3742016 89,410 0.3% 0.1%22,208 4.033,401,3322015 386,134 1.2% 2.6%882,584 0.433,311,9222014 588,551 1.8% 3.9%1,288,200 0.532,925,7882013 136,781 0.4% 2.2%713,038 0.232,337,2372012 149,934 0.5% 1.8%589,635 0.332,200,4562011 (37,076) -0.1% 1.6%521,180 -32,050,5222010 24,516 0.1% 0.2%71,612 0.332,087,5982009 293,781 0.9% -0.2%(51,599) -32,063,0822008 686,364 2.2% 1.0%333,158 2.131,769,301


Page 24

Denver IndustrialSupply & Demand Trends

RReenntt && VVaaccaannccyyDenver Industrial

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 166 0.1% 4.3%$10.12 17,676,357 6.7% 0%2023 166 0.3% 4.3%$10.12 17,537,944 6.7% 0.1%2022 166 0.8% 4.0%$10.09 17,191,906 6.7% 0.2%2021 165 1.4% 3.1%$10.01 16,566,803 6.5% 0.7%2020 162 1.7% 1.7%$9.87 14,516,705 5.8% 0.5%YTD 159 -0.1% -0.1%$9.69 12,979,878 5.3% 0%2019 160 1.6% 0%$9.70 13,079,962 5.3% 1.2%2018 157 7.1% -1.5%$9.55 9,771,443 4.1% 0%2017 147 7.4% -8.1%$8.92 9,526,663 4.0% -0.2%2016 137 7.5% -14.4%$8.30 9,777,560 4.2% 0.6%2015 127 8.8% -20.4%$7.73 8,255,499 3.6% -0.1%2014 117 8.9% -26.8%$7.10 8,328,453 3.7% -1.3%2013 107 5.9% -32.8%$6.52 11,185,177 5.0% -2.1%2012 101 3.4% -36.5%$6.16 16,033,488 7.0% -1.0%2011 98 1.5% -38.6%$5.96 18,257,007 8.0% 0.2%2010 97 -0.7% -39.5%$5.87 17,786,540 7.8% -0.6%2009 97 -2.7% -39.0%$5.91 19,358,075 8.5% 0.5%2008 100 0.5% -37.3%$6.08 18,239,363 8.0% 1.0%

SPECIALIZED INDUSTRIAL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 175 0.1% 3.0%$10.70 3,164,382 6.2% 0.3%2023 175 0.3% 2.8%$10.69 2,978,279 5.9% 0.3%2022 175 0.8% 2.5%$10.65 2,792,816 5.5% 0.3%2021 173 1.1% 1.7%$10.57 2,607,366 5.2% 0.6%2020 171 0.8% 0.6%$10.46 2,279,079 4.6% 0.9%YTD 170 -0.1% -0.2%$10.37 1,851,882 3.8% 0.1%2019 170 -0.2% -0.2%$10.38 1,799,699 3.7% 0.9%2018 170 8.8% 0%$10.39 1,323,406 2.7% -0.1%2017 157 8.5% -8.1%$9.55 1,350,293 2.8% 0.7%2016 144 7.4% -15.3%$8.80 1,004,834 2.1% -0.4%2015 134 9.8% -21.1%$8.20 1,180,201 2.4% -0.4%2014 122 8.7% -28.2%$7.47 1,359,301 2.8% -0.6%2013 113 5.8% -33.9%$6.87 1,662,855 3.4% -3.2%2012 106 4.1% -37.5%$6.50 3,424,912 6.6% -0.3%2011 102 2.5% -40.0%$6.24 3,566,377 6.9% 1.0%2010 100 0.7% -41.4%$6.09 3,035,418 5.9% -0.4%2009 99 -0.9% -41.8%$6.04 3,249,185 6.3% -0.7%2008 100 -0.1% -41.3%$6.10 3,615,022 7.0% 1.0%


Page 25

Denver IndustrialRent & Vacancy

RReenntt && VVaaccaannccyyDenver Industrial

LOGISTICS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 170 0.1% 4.7%$9.19 11,822,168 6.7% -0.2%2023 170 0.3% 4.6%$9.18 12,038,258 6.9% -0.1%2022 170 0.8% 4.3%$9.16 12,066,559 7.0% 0%2021 168 1.5% 3.5%$9.09 11,852,119 6.9% 0.7%2020 166 2.0% 2.0%$8.96 10,416,554 6.2% 0.4%YTD 162 -0.1% -0.1%$8.77 9,408,166 5.8% -0.1%2019 163 2.1% 0%$8.78 9,596,973 5.9% 1.6%2018 159 7.0% -2.1%$8.59 6,815,796 4.3% 0.2%2017 149 7.4% -8.4%$8.04 6,384,036 4.1% -0.5%2016 139 7.7% -14.7%$7.48 6,996,656 4.6% 1.0%2015 129 9.3% -20.8%$6.95 5,366,430 3.7% 0.4%2014 118 9.9% -27.6%$6.36 4,763,834 3.3% -1.3%2013 107 6.6% -34.1%$5.79 6,617,355 4.6% -1.7%2012 101 3.5% -38.1%$5.43 9,127,352 6.4% -1.2%2011 97 1.8% -40.2%$5.25 10,769,705 7.5% 0.4%2010 95 -0.5% -41.3%$5.15 10,271,941 7.1% -0.9%2009 96 -4.0% -41.0%$5.18 11,582,613 8.0% 0.8%2008 100 0.5% -38.5%$5.40 10,443,444 7.2% 1.0%

FLEX RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 148 0% 4.6%$13.82 2,689,807 7.6% 0.5%2023 148 0.3% 4.6%$13.82 2,521,407 7.2% 0.5%2022 147 0.9% 4.3%$13.77 2,332,531 6.7% 0.6%2021 146 1.5% 3.4%$13.66 2,107,318 6.0% 0.8%2020 144 1.9% 1.9%$13.46 1,821,072 5.2% 0.3%YTD 141 -0.1% -0.1%$13.20 1,719,830 5.0% 0.1%2019 141 1.8% 0%$13.21 1,683,290 4.9% 0.1%2018 139 5.7% -1.7%$12.98 1,632,241 4.8% -0.5%2017 131 6.2% -7.0%$12.28 1,792,334 5.3% 0%2016 124 6.9% -12.5%$11.56 1,776,070 5.3% 0.2%2015 116 6.2% -18.1%$10.82 1,708,868 5.1% -1.6%2014 109 6.1% -22.9%$10.19 2,205,318 6.7% -2.3%2013 103 4.4% -27.3%$9.60 2,904,967 9.0% -1.8%2012 98 2.3% -30.3%$9.20 3,481,224 10.8% -1.4%2011 96 -0.4% -31.9%$9.00 3,920,925 12.2% -1.7%2010 97 -2.5% -31.6%$9.04 4,479,181 14.0% -0.2%2009 99 -1.0% -29.8%$9.27 4,526,277 14.1% 1.0%2008 100 1.2% -29.2%$9.36 4,180,897 13.2% 0.8%


Page 26

Denver IndustrialRent & Vacancy

SSaallee TTrreennddssDenver Industrial

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 257- $152.06 6.7%2023 -- - -- 252- $149.17 6.6%2022 -- - -- 246- $145.75 6.6%2021 -- - -- 241- $142.97 6.5%2020 -- - -- 231- $137.10 6.4%YTD -- - -- 218- $129.21 6.5%2019 $1,756 M509 6.8% $127.96$4,976,946 2176.8% $128.53 6.5%2018 $1,549 M581 8.2% $103.05$4,470,363 2126.8% $125.63 6.4%2017 $1,177 M599 5.7% $109.67$3,111,171 1937.0% $114.19 6.5%2016 $1,222 M512 5.7% $101.08$3,346,898 1757.5% $103.42 6.7%2015 $980.0 M515 6.0% $79.95$2,497,388 1597.3% $94.28 6.9%2014 $1,112 M677 7.9% $66.00$2,319,680 1417.5% $83.35 7.3%2013 $623.3 M471 5.4% $58.08$1,822,673 1248.9% $73.49 7.8%2012 $530.6 M411 4.4% $59.58$1,955,672 1148.3% $67.70 8.1%2011 $287.5 M291 2.6% $55.13$1,486,254 1038.0% $61.03 8.6%2010 $345.7 M331 3.0% $55.82$1,382,310 978.9% $57.24 8.9%2009 $228.5 M241 2.1% $53.15$1,513,238 919.8% $53.89 9.4%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

SPECIALIZED INDUSTRIAL SALES





2024 -- - -- 261- $138.20 6.6%2023 -- - -- 256- $135.51 6.5%2022 -- - -- 250- $132.37 6.5%2021 -- - -- 245- $129.94 6.4%2020 -- - -- 236- $125.01 6.3%YTD -- - -- 224- $118.95 6.4%2019 $298.2 M70 5.7% $114.60$5,047,984 2236.6% $118.33 6.4%2018 $179.8 M83 5.1% $104.20$3,268,827 2178.0% $114.83 6.4%2017 $137.3 M75 3.4% $109.87$2,474,113 1947.3% $102.69 6.5%2016 $162.4 M73 4.4% $82.14$2,794,447 1739.3% $91.76 6.7%2015 $149.6 M79 4.8% $73.34$2,228,606 1577.5% $83.35 7.0%2014 $236.5 M109 7.3% $69.35$2,619,470 1408.2% $74.24 7.4%2013 $96.9 M83 5.8% $39.31$1,374,521 1218.7% $64.21 7.8%2012 $87.2 M50 5.2% $35.28$2,484,386 1117.4% $58.94 8.2%2011 $43.6 M35 1.8% $46.82$1,282,181 1028.7% $54.25 8.6%2010 $44.1 M58 2.5% $43.78$979,233 9710.4% $51.24 8.9%2009 $50.3 M41 2.4% $42.96$1,397,108 9111.7% $48.24 9.4%



Page 27

Denver IndustrialSale Trends

SSaallee TTrreennddssDenver Industrial

LOGISTICS SALES





2024 -- - -- 260- $146.78 6.7%2023 -- - -- 255- $144.00 6.7%2022 -- - -- 249- $140.73 6.6%2021 -- - -- 244- $138.04 6.5%2020 -- - -- 234- $132.27 6.5%YTD -- - -- 220- $124.31 6.6%2019 $1,242 M337 7.4% $127.08$5,068,392 2196.7% $123.66 6.6%2018 $1,135 M377 9.5% $97.44$5,067,095 2156.3% $121.27 6.5%2017 $785.7 M355 5.4% $108.50$3,268,241 1956.8% $110.10 6.5%2016 $781.3 M323 6.0% $92.69$3,337,080 1776.7% $99.80 6.7%2015 $633.5 M322 6.6% $75.46$2,665,496 1617.2% $91.20 6.9%2014 $719.8 M415 8.1% $64.19$2,378,912 1427.3% $80.24 7.3%2013 $393.2 M278 5.1% $60.61$1,949,811 1258.9% $70.75 7.8%2012 $271.7 M277 3.8% $55.31$1,477,029 1157.9% $65.02 8.1%2011 $202.8 M177 2.8% $56.51$1,680,290 1038.0% $58.41 8.6%2010 $198.7 M195 2.8% $54.71$1,341,934 978.5% $54.61 9.0%2009 $145.8 M160 2.2% $52.06$1,596,074 918.4% $51.27 9.5%


FLEX SALES





2024 -- - -- 242- $197.67 6.6%2023 -- - -- 238- $193.96 6.6%2022 -- - -- 232- $189.46 6.6%2021 -- - -- 227- $185.73 6.4%2020 -- - -- 218- $178.00 6.4%YTD -- - -- 205- $167.76 6.5%2019 $215.7 M102 5.4% $160.15$4,360,576 2047.2% $166.91 6.5%2018 $233.8 M121 6.0% $141.40$3,451,664 1997.2% $162.35 6.4%2017 $253.7 M169 10.4% $113.34$3,074,961 1857.2% $150.65 6.5%2016 $278.3 M116 6.5% $165.35$3,836,621 1698.0% $137.84 6.6%2015 $196.9 M114 5.7% $107.98$2,241,473 1537.6% $125.02 6.9%2014 $155.5 M153 7.6% $70.02$1,775,384 1377.4% $111.59 7.3%2013 $133.2 M110 6.0% $74.85$1,907,855 1239.1% $100.18 7.6%2012 $171.8 M84 5.7% $112.74$3,327,832 1149.5% $93.40 7.9%2011 $41.1 M79 2.7% $59.11$1,002,688 1028.0% $83.59 8.4%2010 $102.9 M78 5.0% $66.23$1,831,198 969.1% $78.64 8.7%2009 $32.4 M40 1.1% $98.78$1,349,610 929.5% $74.75 9.1%



Page 28

Denver IndustrialSale Trends

MID-YEAR 2018

PREPARED BYBrandon Langiewicz,Partner

RECENT INDUSTRIAL TRANSACTIONS

DENVER AGENTS

SIZE

5454 N WASHINGTON ST

5454 N Washington Street, Unit #7Denver, CO 80216

TERMS

$594,900

3,158 SQFT FOR SALE SIZE

9341 COMMERCE CENTER ST

9341 Commerce Center St., Unit D6Highlands Ranch, CO 80129

TERMS

$192,000


6915 BROADWAY

6915 BroadwayDenver, CO 80221

TERMS

$399,700

2,300 SQFT FOR SALE

SOLD SOLD SOLD

RECENT INDUSTRIAL LISTINGS

SIZE

3911 NORWOOD DRIVE

3911 Norwood Drive, Unit K/LLittleton, CO 80125

TERMS

$699,700


1190 S LIPAN STREET

1190 S Lipan StreetDenver, CO 80204

TERMS

$1,600,000


18596 LONGS WAY

18596 Longs Way #B15Parker, CO 80134

TERMS

$145,970

942 SQFT FOR SALE

Chris IsbellO: 720.572.5187C: [email protected]

Beau HershbergerO: 720.572.5187C: 303.667.2530

[email protected]

Brandon LangiewiczO: 720.572.5187C: 715.512.0265

[email protected]

Shane RobsonO: 720.572.5187C: [email protected]

OUR NETWORK IS YOUR EDGE.

All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should carefully verify each item of information contained herein.

Hoff & Leigh | 2700 S Broadway #307 | Denver, CO 80113 | 720.572.5187 office www.hoffleigh.com/denver


Denver, CO

industrial market report · 2020. 6. 25. · overview denver industrial 6.2 m 2.9 m 5.3% 1.4% 12 mo...

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