Marcus & Millichap's midyear 2026 outlook identifies slowing supply growth alongside leasing momentum in Denver's industrial sector.
Denver's industrial market is experiencing a period of supply normalization, with inventory growth projected to increase by only 1.0 percent throughout 2026 as developers reduce new construction starts. Following several years of elevated supply, this pullback is helping to stabilize market fundamentals despite a forecast for modest vacancy increases. Leasing activity improved substantially in the first quarter of 2026, driven largely by commitments in northeast Denver and key logistics corridors.
Transaction activity remains anchored by private investors, particularly for smaller-format warehouse and distribution assets situated near Interstate 70 and Denver International Airport. Long-term demand is expected to be bolstered by significant projects, including a 1.2 million-square-foot production facility planned by Pepsi and a large manufacturing plant for Philip Morris International's Zyn product in Aurora.
A new lawsuit challenges the ongoing operations of the Schlessman Shores sea lion exhibit at the Denver Zoo.
Stoney's Bar & Grill signs a 10-year lease for a 15,000-square-foot location in downtown Colorado Springs at 118 N. Tejon St.
Littleton City Councilman Merrill Stillwell acquires a 6,250-square-foot retail building in Denver for $1.9 million.
King Dumpling II plans a June opening for its new location in the former Bacon Social House space on South Broadway in Denver.
Dinosaur Ridge Resorts files for Chapter 11 bankruptcy for its 35-acre site at 670 S. Rooney Road, halting a planned $60 million RV park development.
Marcus & Millichap facilitates the $4.5 million sale of a 54,882-square-foot flex industrial property in Colorado Springs.
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