Denver Foreclosure Hits Renovated Industrial Site Hard
The Impact of Foreclosures on Denver's Industrial Market The shockwaves of foreclosure are rattling Denver's industrial sector. Vacancy rates and rent stability are under threat. The city saw industrial vacancy rates rise to 8.0% in Q1 2025 from 6.9% just a year earlier. This jump is largely due to market saturation from foreclosure-affected properties. Foreclosed, renovated industrial sites are flooding the market. Yet, these properties face leasing hurdles, delaying immediate occupancy. This influx has intensified oversupply. Consequently, rental rates have declined, dropping 3.17% year-over-year to $11.59 per square foot in Q1 2025. These changes reflect foreclosed properties competing at reduced costs. This competition is putting downward pressure on rental prices. Despite a mild recovery in net absorption, market imbalances due to foreclosures persist. A noteworthy increase in new construction is contributing to the supply-demand imbalance in Denver's industrial marke...