We have seen great momentum in the industrial and manufacturing sector coming into the start of the year that continues halfway through 2021.
Vacancy rates from year-end 2020 of 6.1 percent have ticked up to today's 6.7 percent based on a further increase of new buildings being delivered, a healthy 5.3 million square feet (SF) in the last 12 months, and 3 million square feet year to date, with an additional 7.3 million SF currently under construction at 34 projects. Although the majority of this is earmarked as "Logistics" product, there is approximately 400,000 SF of specialized or manufacturing space underway.
Rental rates have hit an all-time high of $10.20/SF, which is still at a substantial discount from other markets in the West. Investment by owners of real estate remains strong in Denver in 2021, with numbers close to 2019. Denver and its location in the U.S. are clearly on the map and look to continue that way for the foreseeable future.