With record amounts of speculative space under construction, can Denver handle 2019’s deliveries?
In 2019, 84.3% of space under construction is speculative– an unusual trend in the Denver market that signifies an elevated degree of confidence in tenant demand. Such confidence is likely driven by 11 consecutive quarters of positive absorption for the industrial sector.
So, can this continue?
There is more than 13.4 million square feet of demand from tenants looking to buy or lease sometime in 2019, according to JLL’s tenant database. The product being delivered in 2019, while significant, only accounts for a fraction of the total available square footage in Denver. With more than 13 million square feet of demand (so far), it’s likely that the new space will give existing tenants more flexibility, while also accommodating pent-up demand. Based on these market factors and conditions, it is likely that positive absorption will continue into 2019.