Denver Industrial Figures Q2 2026

The market’s performance in Q2 2026 reflected softer demand but steady fundamentals, with net absorption moderating but staying positive and direct vacancy edging slightly higher. Net absorption totaled 55,000 sq. ft., a decrease of 269,000 sq. ft. from Q1, though rolling four-quarter absorption of 3.1 million sq. ft. remained above the 2.5 million sq. ft. from Q2 2025. Direct vacancy rose 30 bps quarter-over-quarter to 8.3%, driven in part by BroadRange Logistics vacating the remainder of its space at 76 Commerce Center.

The market remains tenant-favorable overall, though leverage continues to shift unevenly by submarket as direct space becomes available, expanding options for tenants. Average asking rents rose 1.8% year-over-year, reflecting continued rent growth despite softer leasing conditions as absorption cools and vacancy remains slightly elevated. Three projects totaling 662,000 sq. ft. broke ground, the pipeline’s first increase since Q4 2024 and an early signal that developers may be preparing to meet the next leg of demand. Leasing activity accelerated, rising from 3.0 million sq. ft. in Q1 to 3.3 million sq. ft. in Q2, with the majority of activity concentrated in the Airport submarket. At the midpoint of 2026, these trends reflect a market still working through softer demand as evidenced by lower net absorption and increased space availability. Despite these factors, renewed leasing momentum is laying the groundwork for a more balanced second half of 2026.