What Denver submarkets will be areas of industrial growth in the year ahead?
Traditionally, the I-70 East corridor has been the center of action for industrial development. However, 2018 saw a surge of construction in the North I-25 and Northeast submarkets. Will this continue into 2019?
- From 2014 to 2017, the gravitational center of new industrial deliveries has leaned eastward. As of Q2 2018, however, the center has skewed much farther north than usual. A number of projects have delivered in the North I-25 and Northwest regions in 2018, including Interpark, The Summit II at CTC, and the Park 12 Hundred Tech Center buildings.
- While construction throughout the Denver market has remained strong, in the North it grew steadily between Q3 2016 and Q2 2018. This submarket now claims about one-third of the Metro’s total square feet of construction.
- 22% of new construction expected to deliver in 2019 is in the northern submarkets. While less than 2018’s market share, this still represents significant interest in what has historically been a much quieter area of Denver.