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Warehouse vacancies jumps to 4.4% in Q4 2015

warehouse vacancies

Warehouse vacancies jumps to 4.4% in Q4 2015

Warehouse vacancies jumps to 4.4% in Q4 2015, an increase of 0.3% from previous quarter. Net absorption for the overall Denver industrial market was negative (459,613) square feet in the fourth quarter 2015. That compares to positive 893,511 square feet in the third quarter 2015, positive 833,873 square feet in the second quarter 2015, and positive 624,690 square feet in the first quarter 2015. This represents a total net absorption for 2015 of 1,892,461 square feet. A total of seven buildings were delivered to market in the fourth quarter, totaling 301,136 square feet with an additional 3,569,111 square feet still under construction at the end of the quarter.

Warehouse building sector recorded net absorption of negative (925,305) square feet in the fourth quarter 2015. That compares to positive 538,822 square feet in the third quarter, positive 725,020 in the second quarter 2015, and positive 265,013 square feet in the first quarter. Total absorption for warehouse building sector for 2015 was 603,530 square feet.

Flex building sector recorded net absorption of positive 465,692 square feet in the fourth quarter, compared to positive 354,689 square feet in the third quarter 2015, positive 108,853 square feet in the second quarter 2015, and positive 359,677 square feet in the first quarter 2015. Total absorption for flex building sector for 2015 was 1,288,911 square feet.

The overall warehouse vacancies for Denver industrial market stood at 4.4% at the end of the fourth quarter 2015. The vacancy rate was 4.1% at the end of the third quarter 2015, compared to 4.3% at the end of the second quarter 2015, and 4.4% at the end of the first quarter 2015.

Flex building sector reported a vacancy of 9.4% at the end of the fourth quarter, 10.1% in third quarter 2015, and 10.8% for second and first quarter 2015 respectively. Warehouse building sector reported a vacancy of 3.3% at the end of the fourth quarter 2015, 2.9% in third and second quarter 2015, and 3.0% at the end of the first quarter 2015.

Rental rates quoted for available industrial spaces including flex and warehouse buildings was $7.98 per square foot per year at the end of the fourth quarter which represented a 2.3% increase in quoted rental rates from the end of the third quarter. Rental rates were reported at $7.80 per square foot at the end of the third quarter. The average quoted rate for flex sector was $10.15 per square foot per year and warehouse rates stood at $7.10 at the end of the fourth quarter 2015.

Total industrial inventory for the Denver market area stood at 290,508,852 square feet in 10,280 buildings as of the end of the fourth quarter.