Denver, Colorado
The Denver region, with a population of 3.1 million, is 6th fastest growing economically vibrant metropolitan areas in the United States. Colorado has the nation’s third best economy, based on economic performance in the last year. Its diversified economy is supported by various industries, including natural resources, health care, education and construction. As such, it is a prime market for industrial property.
A revitalized downtown, a robust and growing public light rail system, and affordable housing has led to a concentration of highly educated young workers. Some 43.7 percent of Denver’s population over the age of 25 holds a bachelor’s degree, compared with 30.6 percent for the U.S. overall. The Metro Denver area has an unemployment rate of 2.1% as of April 2017, well below the national average. These factors are spurring demand for e-commerce logistics, industrial real estate and warehouse properties in and around Denver.
Denver International Airport served 53 million travelers in 2016, making it the fifth-busiest passenger airport in the U.S. It is also the nation’s 22nd-busiest cargo airport. In addition, Denver sits astride the conjunction of three major interstate highways and several vital freight rail lines. This position, combined with advanced infrastructure, has made Denver a central location for distribution throughout the Mountain West region.
CO is an ideal hub for interstate and international commerce. The state’s total exports grew 6.4% between 2012-2013, compared with a 2.1% national increase. (U.S. Department of Commerce, 2014) More household names, like Best Buy, Walmart and Amazon are planting a flag in the region. The average lease size has grown from mid-20K SF in 2014 to mid-40K SF in 2016, not accounting for major outliers like Amazon. There is little doubt that Denver will continue to be a hot spot for growth, encouraging developers to continue building speculative development projects upward of 500K SF, with the ability to subdivide as needed.
- A population boom, an influx of millennials and economic stability have put Denver on the map as one of the country’s hottest markets. The growth has also put the region on the radar of major industrial investors and occupiers attracted to the growing workforce seeking out Denver for its better work-life balance and quality of life. Denver ranks No. 2 on U.S. News & World Report’s “Best Places to Live,” and added almost 12,000 new residents compared to last year. As the workforce grows and evolves, so has the industrial market. Read More
- E-commerce players have also turned to Denver, drawn by a growing urban population demanding improved last-mile delivery. Amazon occupied 452K SF last June and is constructing a 1M SF facility at the I-70/E-470 intersection. The e-commerce giant is also permitting a three-story, 2.4M SF fulfillment center in Thornton, Colorado. “We haven’t had e-commerce here before, and because there are so many millennials in the area, e-commerce is moving in to service their instant gratification needs,” JLL research analyst Margaret James said. September 14, 2017 JLL Denver Travis Gonzalez, Writer
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