Denver’s industrial market continues to benefit from improving leasing momentum and slowing construction activity as developers pull back following several years of elevated supply growth, according to Marcus & Millichap’s newly released Denver Industrial Investment Midyear 2026 Outlook report.
“Denver’s industrial market continues to navigate a more selective leasing environment while strong transportation infrastructure and improving investor activity support long-term market stability,” stated Adam Lewis, senior managing director, market leader.
Key findings include:
- Industrial inventory growth remains muted in 2026, with completions projected to expand supply by only 1.0 percent as developers pull back following several years of elevated construction activity.
- Leasing momentum improved entering 2026, with first-quarter activity rising substantially year over year as larger tenant commitments supported northeast Denver and surrounding logistics corridors.
- Vacancy is forecast to rise modestly this year, though slowing construction activity and improving leasing trends are helping limit further deterioration in market fundamentals.
- Private investors continue to drive transaction activity throughout the metro, particularly for smaller-format warehouse and distribution assets near Interstate 70 and Denver International Airport.
- Major industrial projects, including Pepsi’s planned 1.2 million-square-foot production facility and Philip Morris International’s large Zyn nicotine pouch manufacturing plant in Aurora, could generate additional demand for nearby logistics and warehouse properties over the longer term.
“Denver’s strategic location and evolving industrial base continue to support investor interest as the market works through a period of supply normalization,” added Lewis.
Access the full report here.
