Denver Industrial Figures Q4 2025

Denver’s industrial market performance in Q4 2025 reflected sustained positive fundamentals, with ample net absorption, an uptick in both leasing and sales activity, and moderating vacancy and new construction. Total net absorption reached positive 1.0 million sq. ft. for the quarter and 3.6 million sq. ft. for the year, 32.8% higher than 2024’s total. After several large new occupancies boosted net absorption last quarter, Q4’s total closely mirrors the quarterly average for the past three years and attests to the resilient and still healthy demand among industrial users. Direct vacancy declined 10 basis points (bps) to 7.5%, indicative of the greater balance between supply and demand as the amount of new speculative construction continues to slow.

The construction pipeline remained largely stable quarter-over-quarter at 3.3 million sq. ft., with 640,000 sq. ft. of new construction breaking ground and 668,000 sq. ft. of deliveries. As new ground breakings slow and deliveries outpace new starts, the construction pipeline is expected to further contract and help put additional downward pressure on vacancy rates.

Leasing volume in Q4 2025 totaled 2.9 million sq. ft., the strongest quarter of 2025 that brought the annual total to 10.5 million sq. ft. Industrial sales volume totaled $575 million in Q4, up 17.8% from the previous quarter and pushing the 2025 total 40.6% higher than last year’s volume. Owner-user investment activity remained robust, with 2025’s volume more than double the previous annual high.