MARKET SUMMARY
Metro Denver saw its 45th consecutive quarter of positive net absorption, recording over 1.2 million sq. ft. of net absorption in Q2 2021 and pushing the year-to-date (YTD) total to nearly 2.1 million sq. ft.—up 11.3% year-over-year. Development volume continued to reach new heights with increased build-to-suit (BTS) activity, totaling just under 10.0 million sq. ft. of projects under construction. Of the total, 5.2 million sq. ft (52.2%) is planned for speculative (spec) space. Availability remained stable at 9.2% in Q2 2021, while direct vacancy fell 14 bps to 6.9%. The average direct asking lease rate recorded slight growth quarter-over-quarter, reaching $8.97 per sq. ft. triple net (NNN). The average achieved lease rate grew to $8.39 per sq. ft. NNN in Q2 2021. Strong sales activity continued into Q2 2021, recording overall sales volume of $644.6 million and bringing YTD sales volume to nearly $1.1 billion—43.2% higher than the volume recorded during the first half of 2020. Sales volume for owner/user properties declined by 33.9% while investment sales volume, which accounted for 91.0% of the total quarterly sales, increased 42.7% year-over-year.
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