2024 Year-End Summary Northern Colorado Industrial Market Report

Market Overview

Key Highlights

• The market has shown signs of stabilization, with 2024 sales increasing by 19% compared to 2023.
• Rents remain positive, reflecting market resilience. Boulder leads with the highest rents at $15.03/SF.
• Construction activity varies significantly across Northern Colorado. Greeley stands out with 445,114 SF under construction.

By the Numbers

All Properties | 2024 | Industrial + Flex Properties | Source: CoStar Group

• Sales Volume: $435.3M
• Number of Properties Sold: 234
• Market Sale Price Per SF: $172.72
• Vacancy Rate: 6.73%
• Rent Growth: 1.81%
• Average Rent Per SF: $13.54
• Under Construction (SF): 532,714
• Construction Starts (SF): 249,464
• Net Absorption (SF): (538,334)

Focused Metrics

Transaction Volume

5,000-200,000SF | Industrial + Flex Properties | Source: CoStar Group

The industrial market in Northern Colorado is adjusting, with sales activity showing signs of stabilization and optimism despite recent declines. 2024 sales increased by 19% compared to 2023. This volume mirrors pre-COVID levels, signaling a return to market normalcy after the bull run in 2021 and 2022.

The average sale price per square foot in Northern Colorado has seen a decline of 26% to an average of $167 per square foot. Forecasts suggest that pricing will continue to soften until mid-2025 before recovering. Despite pricing adjustments, owner-users remain active, paying premium prices for properties that enable business expansion. The industrial submarkets in Northern Colorado demonstrate varied performance, Greeley stands out for its steady $129 million in sales for 2024 and notable transactions like the $17.25 million acquisition of a manufacturing facility in Diamond Valley. Boulder’s industrial submarket has cooled, with sales totaling $54 million in Boulder proper, well below its five-year average. Recent transactions in Boulder involve smaller assets under 50,000 square feet, often driven by private buyers or owner-users, reflecting a shift in market dynamics.

Vacancy, Rents, and Construction

5,000-200,000 SF | 2024 | Source: CoStar Group

• Vacancy Rate: 7.9%
• Average Asking Rent: $13.86/SF
• Under Construction (SF): 532,714
• Construction Starts (SF): 249,464

Vacancy rates in Northern Colorado have generally risen over the past year due to slower absorption rates and new inventory delivery. Fort Collins saw a sharp increase mid-2024 to 8.7% driven by 200,000 SF of negative net absorption, before dropping to 7.5% by year-end. Greeley continues to benefit from a high owner/user-dominated market, maintaining one of the lower vacancy rates in the region at 5.25%. Boulder proper faced challenges with a vacancy rate of 13.49%, significantly higher than its five-year and 10-year averages, as new completions and sluggish absorption weigh on the market.

Rent growth across Northern Colorado has slowed but remains positive in most submarkets, reflecting the region’s relative stability compared to broader national trends. Boulder proper had the highest rents in the region at $16.68/SF, driven by its concentration of flex properties, though rent growth has decelerated to just 1.58% YOY. Greeley follows with rents averaging $13.30/SF, supported by strong demand of modern facilities and population growth. Rent adjustments across Northern Colorado remain less severe than national averages, underscoring the region’s resilience amid shifting market conditions.

Construction activity has varied significantly, with some areas seeing robust development while others remain stagnant. Fort Collins currently has around 32,000 SF of industrial space under construction, a modest figure compared to its 10-year average of 1.3 million. Meanwhile, Greeley has seen a surge in construction, driven by strong tenant demand and population growth projection, recording 445,114 SF under construction. Notable projects include the second phase of the Elevation25 development, which will add 850,000 SF across seven buildings in Mead. In contrast, construction activity in Boulder has cooled, with just 22,250 SF under construction, a stark difference from its historical averages.