Denver Industrial Strength Means Spec Development

Demand for large distribution space in Denver has spiked—but supply hasn't, CBRE's Todd Witty tells us. That's a recipe for a rush to develop spec, and it's happening.

A number of users can't find quality space in the Denver market in the size range they need, Todd tells us. Recently EP 70 LLC, a single-asset entity managed by Consolidated Investment Group, tapped Todd and colleague Doug Viseur (on the left with Todd) to lease its planned Eastpark 70, a 105-acre, master planned industrial development near I-70 and Tower Road. It will include three buildings altogether.

The project will help satisfy the strong demand for this type of space in the metro area, Todd says. Currently, industrial development is heavily concentrated in the East I-70/Montebello submarket, with more than 2M SF set to come on line this year, investment specialist Marcus & Millichap estimates. Most of the projects in the submarket will be large scale. The combination of new construction and tight vacancy will drive double-digit rent growth this year.

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