According to CoStar’s latest industrial report, Denver’s industrial market is in a late-cycle correction phase, characterized by elevated vacancy and negative absorption but also a clear downshift in new supply. Vacancy has risen to 9.1%, a two‑decade high and among the highest of major U.S. markets, with net absorption over the past year at about -1.2 million SF and roughly 70% of submarkets showing demand contraction. Developers have sharply curtailed new starts—only about 5.6 million SF is under construction, the lowest since 2017, which sets up fewer completions in 2026 and helps cap further upward pressure on vacancy. Forecasts call for vacancies to peak slightly above 9.5% in 2026 before gradually tightening, aided by firmer tenant demand and a thinning construction pipeline.
As Rapid City and the Black Hills region continue to grow, the retail property market is poised for further expansion. Ongoing infrastructure improvements, such as those associated with the B-21 mission at Ellsworth Air Force Base, are expected to attract additional residents and businesses, reinforcing the area’s economic momentum.
For a full analysis of market trends and local vacancy rates, please see the attached report as provided by CoStar. Contact CoStar for other regional information or Dustin Ferguson for local valuation expertise.
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Market data is provided by CoStar Analytics. Ferguson Appraisals, LLC is a licensed user of CoStar Analytics and has received permission to share the published report.