Currently, industrial properties in Denver are witnessing record-breaking growth even amid the global pandemic.
Some real estate experts believe that the pandemic and subsequent lockdown positively impacted the market, increasing demand. For example, a study indicates that new tenants had consumed over 3.5 million square feet of industrial space by the end of 2020. This is an increase of 14.9% from the previous year.
The Denver metro area has approximately 8.2 million additional square feet of industrial space in its pipeline, setting a new record since 1997, indicating a strong market growth potential. So, what factors fuel the high demand to buy industrial property in Denver? Check out the top reasons here.
1: Large Population Base Contributes to a Spike in Demand
Denver has the 20th largest population in the United States. The growth rate is slowing down in Denver metro area, but it is still witnessing steady growth. Adding to it is a fast-paced boost in ecommerce, further increasing the demand for goods. As such, the need for manufacturing facilities, warehouses, cold storage houses, R&D setup, and other industrial properties has heightened recently. And Denver real estate market is constantly keeping up with this need.
2: Economy is Strong and Growing
In Denver, the unemployment rate is low, while the economic condition and buying capabilities of people here are high. Adding to it is a diverse and robust economy, powered by various industries from Energy and Mining to Telecommunications and Technology. In addition, the city is politically stable and paves the way for lucrative business possibilities.
3: Industrial Properties in Denver Enjoy a Good ROI
In addition to low tax rates and investor-friendly laws, the above reasons, in combination, ensure that industrial real estate investment in Denver generates a high return on investment.
Investing in industrial real estate is an important decision. However, you are likely to make costly mistakes without having an expert industrial real estate firm like TAG Industrial on your side. TAG Industrial can provide personalized advisory services, and assist you in achieving your long-term real estate goals.