Colorado-Real-Estate-Journal_482725

Page 16 — Office & Industrial Quarterly — September 2025 www.crej.com INDUSTRIAL O nce perceived as a dusty gold-mine town, Denver, which was founded nearly 170 years ago, is today the 14th most active industrial market in the country. Its growth over that time largely coincided with the construction of its major modes of transportation – the rail- road in the late 1800s, a freeway system in the mid-1950s and an international airport in the mid- 1990s. By 2000, Denver was a booming metropolis with several thriving industrial submarkets. By the 2010s, as Denver’s population continued to grow – along with the traffic conges- tion and land constraints associated with that growth – the prairies and agricultural land to the southeast began to experience rapid expan- sion. By 2017, Arapahoe County, including the cities of Centennial and Englewood, were seeing steady demand from developers and inves- tors. n A foundation for business growth. A number of positive economic fac- tors were at play as commercial and industrial developers took inter- est in southeast Denver. Arapahoe County’s housing market experi- enced rapid appreciation, and hous- ing vacancies were down. The medi- an household income in the county grew 45% in the years between 2015 and 2019, from $67,258 to $97,215. Denver’s economic growth, includ- ing that of Arapahoe County, out- paced the national economy, and Colorado as a whole had one of the lowest unemployment rates in the country. With a thriving business climate, a strategic plan aimed at creating a vibrant commu- nity for residents and businesses, an educated work- force, and eco- nomic incentives, southeast Denver was earning a reputation as a great place to do business. “Arapahoe County and a number of cities in that southeast submar- ket, perhaps most notably Centen- nial, are markedly pro-enterprise,” said Daniel Close, senior vice presi- dent of advisory and transactional services with commercial real estate firm CBRE. Close has a strong back- ground in high-value industrial property development and leasing in Colorado. “They actively promote a business-friendly environment through various initiatives and incentives designed to attract, retain and assist businesses from estab- lished corporations to small compa- nies and startups,” he said. Among those incentives are tax credits or reimbursements to com- panies that locate in or expand into more economically distressed areas of Arapahoe County or that create jobs that pay at or above the average county wage. The county as well as cities including Centennial also con- nect businesses to state-level grants for customized job training for new and existing employees. n Location and land, too. Beyond incentives, businesses that locate in Denver’s southeast submarket benefit from its advantageous loca- tion along the Interstate 25 corridor near the E-470 interchange. The sub- market also boasts the Denver Tech Center and the Centennial Airport and is just 30 minutes from down- town Denver and Denver Interna- tional Airport. Along with its location, southeast Denver has available undeveloped land that continues to garner the attention of speculative develop- ers who recognize an opportunity to build Class A industrial facilities. Speculative development is ben- eficial for end users who want the modern features of new construc- tion but don’t have the time to wait on the entitlement and construction process. Collectively, these conducive busi- ness conditions – positive econom- ics, incentives, location and land – have led to southeast Denver being home to a healthy and diverse busi- ness base that includes the financial services, telecommunications, tech- nology, health care, and aerospace and defense sectors among others. “Within the last 10 years, the southeast region has continued to be a stronghold for industrial devel- opment,” said Close. “Right now, it’s experiencing a limited develop- ment pipeline, strong demand, and healthy leasing activity. Developers are feeling confident, so we’re start- ing to see more speculative starts.” n Spec industrial in the southeast submarket. Among those speculative developments is Catalyst Indus- trial, a 14.26-acre 188,054-square- foot Class A project in Centennial. Designed to accommodate up to six tenants, the building can be divid- ed into spaces as small as 21,000 square feet. It offers 32-foot clear Colorado’s SE submarket: Decidedly pro-business 5120 Osage St., Suite 100 Denver, CO 80221 Phone (303) 420-0234 Fax (303) 420-7666 www.murrayandstafford.com Murray & Stafford is currently collaborang with Jordon Perlmuer & Co. on the expansion of the Hub Arapahoe Industrial Campus in Centennial. Construcon began in July and is scheduled for compleon in April 2026. This second phase of the 22-acre industrial development will finalize the 304,172-square-foot, four-building cam- pus with the addion of two new buildings totaling 119,803 square feet. The inial phase is fully leased, while Phase II buildings are parally leased. Together, the new buildings will feature 4 drive-in loading doors, 20 dock-high loading doors, and 24-foot clear heights. For leasing information, please contact Dave Lee, Jason Addlesperger, or Philip Lee with JLL at (303) 260-6500. Joe Swensson Senior director of real estate development, Opus Catalyst Industrial Please see Swensson, Page 24