Denver’s industrial market remains one of the most important logistics, service, and contractor hubs in the Mountain West, supported by steady population growth, continued economic diversification, and a robust infrastructure network centered around I-25, I-70, I-76, and Denver International Airport. The metro’s combination of freight connectivity and growing construction, utilities, equipment rental, and service-provider ecosystems continues to attract both regional and national operators.

Major public and private projects are reinforcing long-term industrial demand. Denver recently completed a $150M+ reconstruction of the 16th Street Mall, voters approved the nearly $1B Vibrant Denver bond package to fund additional citywide infrastructure improvements, and discussions continue around a potential new Broncos stadium valued north of $1B^1,2. DIA — now the third-busiest airport in the U.S. — is planning future expansions that will further elevate regional freight and passenger capacity³. These large-scale initiatives, combined with Denver’s decade-long population growth of nearly 2% annually, support a strong labor base and a stable pipeline of industrial users.

Leasing activity slowed modestly in 2025, but fundamentals remain resilient. As Mike Viehmann of Newmark notes, “Although new IOS leasing activity has slowed since Q1 2025, rental rates remain stable, with renewals getting signed at market rates – signaling continued low vacancy and consistent pricing in the marketplace. Even with tenant activity having cooled off, investor demand remains high with national IOS buyers still bullish on Denver due to its scarcity of product and high barriers to entry.”

Tenant activity has recently shown signs of re-acceleration, driven by heavy-equipment users, maintenance facilities, and owner-users seeking long-term positions in functional, well-located sites. “We’ve seen a substantial increase in tour activity in the past ~30 days,” says Sam Dragan of CBRE, highlighting elevated engagement from owner-users and service providers. “Navigating zoning, permitting, and use-permits continue to be a challenge around the Denver Metro area. Having a local expert that understands how to navigate those channels is a necessity.”

Across the metro, Denver’s foundation remains steady: a diversified economy, strong freight flows, and persistent demand from groups reliant on outdoor storage for fleet operations, materials staging, and logistics support.

Denver remains one of the most structurally constrained IOS markets in the western United States. Infill industrial land zoned for outdoor storage is limited, redevelopment pressure continues to remove existing IOS sites from the inventory, and the zoning/entitlement landscape remains challenging across multiple jurisdictions. As Sam Slaton of Lincoln Property Company notes, “Denver IOS development continues to be constrained by limited infill land zoned for outdoor storage and existing sites continue to be eliminated for redevelopment forcing tenants to relocate. The Denver market continues to support rental rate growth and generate strong sale prices for functional well located IOS sites across the Denver metro.”

Despite moderated leasing velocity over the past year, demand remains broad, durable, and rooted in the industries that define Denver’s economic base. Transportation groups, telecom and utility contractors, environmental services, equipment rental companies, and construction-materials suppliers all rely heavily on secure outdoor storage. As a result, well-located sites continue to command strong pricing.

Investor appetite remains especially strong. Ryan Searle of Cushman & Wakefield summarizes current dynamics: “Denver IOS interest from investors remains strong for quality opportunities whether they are leased or vacant. Tenant activity has been down over the last 12 months, which has caused lease rates to plateau slightly. Denver still has limited quality opportunities for tenants looking for a building with yard, so a good property has the ability to command a bit of a premium in terms of lease rate if positioned well.”

The region’s long-history of outdoor-oriented industrial use also helps explain the durability of the sector. As Garrett Neustrom of Kenai Capital notes, “In Denver, the zoning and permitting landscape for IOS is challenging, but that scarcity continues to drive long-term value. Simplicity remains the cornerstone of performance, as straightforward and functional sites consistently deliver outsized returns for investors. Industrial Outdoor Storage is the backbone of the U.S. economy, and in Denver, it’s rooted in a legacy of oil, gas, and mining. Those legacy facilities are now evolving to serve the industrial cul-de-sac that is Denver, a market that imports much of its product and relies on IOS sites to keep the region’s goods and services moving.”

This scarcity-driven environment — combined with limited new supply, zoning friction, and strong investor interest — positions Denver in a similar phase as other maturing IOS markets such as Nashville, Phoenix, and Tampa. Even with short-term softening in tenant activity, market-rate renewals, compressed vacancy, and the reappearance of owner-user demand indicate a sector supported by long-term fundamentals rather than cyclical swings.

The Bottom Line:
Denver’s IOS market remains one of the tightest and most supply-constrained in the Mountain West. Limited entitled land, rising redevelopment pressure, and persistent demand from fleet operators, contractors, and service providers continue to support stable rental rates, strong pricing for functional sites, and long-term value creation for well-located IOS assets. storage.

Big thanks to all participants who helped shape this week’s Market Monday in Denver. If you’re looking to buy, sell or lease in Denver, the people below are the ones to call!

See all active listings here

Mike Viehmann, SIOR
Managing Director
e: [email protected]
p: 303-260-4340

Sam Slaton
Vice President – Industrial Brokerage
C 303.517.5183
E: [email protected]
Lincoln Property Company

Ryan Searle
Senior Director
C 720-260-5859
E: [email protected]

Sam Dragan
Vice President
C 260 402 1122
E: [email protected]

Garrett Neustrom
Director
C 303.681.5672
E: [email protected]

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