Denver Industrial Figures Q1 2026

The industrial market in Q1 2026 showed continued positive fundamentals but with some slight moderation. Total net absorption was positive 416,000 sq. ft., a 51.9% decline from Q4 2025’s total and 16.1% below the level from a year earlier. Trailing 12‑month absorption totaled 3.3 million sq. ft., contributing to a three‑year cumulative gain of 10.3 million sq. ft. Total vacancy remained stable at 8.6%, unchanged quarter‑over‑quarter and only up 10 bps (basis points) year‑over‑year; direct vacancy trended slightly lower, declining 10 bps from the previous quarter and 30 bps from a year ago to 7.8%. Availability edged slightly higher to 10.4%, up 30 bps from Q4 2025 and 50 bps year‑over‑year. Sublease availability eased to 1.2%, with 3.2 million sq. ft. of sublease space on the market.

Average asking rents were $10.00 per sq. ft., down a slight 0.8% quarter‑over‑quarter but 4.1% above Q1 2025; achieved rents averaged $9.12 per sq. ft., also down 0.8% quarter‑over‑quarter, but up 2.9% year‑over‑year. The construction pipeline stood at 3.6 million sq. ft., up 10.1% quarter‑over‑quarter but down 27.4% year‑over‑year, with deliveries slowing to 413,000 sq. ft. Overall, fundamentals support modest rent growth and steady absorption, while persistent submarket divergence and a contracting pipeline point to a gradual, measured market rebalancing rather than a rapid recovery.