Northwest Industrial/Flex Markets
At the end of the 4th quarter 2013 the NW Denver submarkets were experiencing a vacancy of approximately 31% in industrial/flex buildings. By the end of the 3rd quarter of 2014 that percentage spiked to approximately 37%. However, in the 4th quarter of 2014 there was a leasing and buying frenzy in this product type; as the dust settled and by the end of the 4th quarter 2014 the vacancy dropped to approximately 23%. Despite this leasing activity, there are few proposed industrial/flex projects in the works. Although this product type at one point was overbuilt to a large degree, as the economy has improved across the board, this product type continues to be highly sought after by the small start-ups and incubator companies. It appears to us that there is not enough product to support the current demand; based on our prospects for this product type, buyers and lessees in the 1,500 to 2,000 square foot range have very few quality choices. Time for a new flex option in NW market? I have experienced numerous calls from prospective tenants and buyers trying to identify space to suit their needs. We believe that this demand will continue to rise, without the supply the end users will have to consider moving and/or relocating to different part of the Denver metro area.
Serving the Boulder, Denver metropolitan areas and the entire Colorado market.