Denver, CO Industrial Market Report Q3 2026

Denver Asking Rents Slip 1.6% as Vacancy Holds Near a 9.2% Peak

Demand

Denver vacancy rose 46 bps year over year to 9.0%, just below the 9.2% peak of Q2 2026, and asking rent of $11.64 per SF is down 1.6% and 2% below the Q2 2025 high of $11.85. Trailing-12-month net absorption of 1.36M SF is up from 758K SF in the prior 12 months, although Q3 absorption of 801K SF trailed last year’s 2.48M SF.

Supply

Completions fell 23% to 3.15M SF over 12 months from 4.10M SF, well below the 9.33M SF delivered in 2023, and Q3 deliveries of 462K SF were less than a third of last year’s 1.51M SF. Space under construction totals 4.28M SF, or 1.5% of inventory versus a 3.9% peak in Q2 2022, about 13 quarters of absorption at the trailing pace.

Investment Market

Denver recorded $2.1B in sales over the trailing twelve months, -11% against the prior TTM period; Q3 accounted for $577M. The high-water mark in this series is $2.5B in 2021. Deal-volume figures are directional; cap rate and price per SF are reported values.

Denver industrial cap rates averaged 6.78%, falling for 3 straight quarters even as trailing-twelve-month transaction volume declined. Pricing reached $179 per SF and has moved higher for 3 consecutive years. As national background, MSCI/RCA reported a 6.4% industrial hedonic cap rate, up 20 bps year over year; that measure is distinct from Denver’s transaction average.