Denver’s industrial submarkets span a $26/SF spread—from $4.27/SF in I-76/Brighton to $30/SF for premium Englewood space. That range represents real trade-offs in location, access, building quality, and operational fit.
Choosing based solely on rent leaves money on the table (or wastes it). The “cheap” submarket might cost more when you factor in longer drive times, carrier limitations, or talent access. The “expensive” submarket might justify its premium through customer proximity or operational efficiency.
Here’s how each Denver industrial neighborhood actually works for small warehouse users—not the marketing pitch, but the operational reality.
West Denver: Tightest Vacancy, Central Access, Limited Options
The numbers:
- Vacancy: 1.2% (lowest metro-wide)
- Asking rents: $11-14/SF NNN
- Building stock: Older buildings, 12-22 foot clear heights, grade-level access
What West Denver offers: Central Denver positioning with excellent access to I-25 and I-70. These older industrial areas (think Federal, Sheridan, Alameda corridors) provide the classic small-bay building stock that developers stopped building decades ago. Grade-level access works well for businesses using vans, pickup trucks, and smaller box trucks without forklifts.
Who thrives here:
- Contractors and trades needing central metro access
- Service businesses covering the entire Denver market
- Local distribution operations
- Businesses shipping to mountain communities via I-70
The trade-offs: 1.2% vacancy means extremely limited availability. When a suitable space is listed, expect competition and fast decisions. Building age means variable efficiency—some properties have been well-maintained, others need work. Clear heights of 12-22 feet limit vertical storage but suit most small business operations.
Realistic expectations: You’ll wait for availability. When you find a suitable space, be prepared to move quickly. Budget for potentially higher utility costs in older, less efficient buildings.
Southwest Denver: Hot Market, Rising Rents, Strong Small-Bay Inventory
The numbers:
- Vacancy: 2.0%
- Asking rents: $10-14/SF NNN
- Rent trend: Double-digit quarterly growth
What Southwest Denver offers: Excellent small-bay inventory with strong highway access (I-25, US-285). The submarket serves businesses needing to cover both the Denver metro and the south/southwest corridor. The building stock ranges from older industrial properties to well-maintained flex properties.
Who thrives here:
- Small businesses and contractors
- Local distribution operations
- Companies serving Denver and the South Metro markets
- Businesses wanting a balance of access and affordability (relative to Central Denver)
The trade-offs: Double-digit quarterly rent growth means today’s pricing won’t hold. Secure space now if Southwest Denver fits your needs—waiting likely means paying more. The 2.0% vacancy creates competition similar to West Denver, though slightly less intense.
Realistic expectations: Expect rent increases at renewal. The submarket’s popularity is driving pricing toward Central Denver levels. If long-term cost stability matters, negotiate longer lease terms to lock current rates.
Central Denver/RiNo: Premium Pricing, Character Buildings, Parking Challenges
The numbers:
- Vacancy: 7.6-8.5% (overall, but small-bay much tighter)
- Asking rents: $12-15.17/SF NNN
- Character: Industrial-chic, exposed brick, timber beams
What Central Denver offers: The highest-character industrial buildings in Denver—think converted warehouses with architectural appeal that doubles as brand identity. Excellent transit access (A-Line to DIA) and proximity to downtown, RiNo, and LoDo neighborhoods. Strong talent access for businesses employing younger workers who want urban locations.
Who thrives here:
- Creative industries (design, media, photography)
- Breweries and craft food production
- Customer-facing businesses where aesthetics matter
- E-commerce brands wanting an urban fulfillment presence
- Companies prioritizing talent attraction over cost
The trade-offs: Double-digit quarterly rent growth means today’s pricing won’t hold. Secure space now if Southwest Denver fits your needs—waiting likely means paying more. The 2.0% vacancy creates competition similar to West Denver, though slightly less intense.
Realistic expectations: Expect rent increases at renewal. The submarket’s popularity is driving pricing toward Central Denver levels. If long-term cost stability matters, negotiate longer lease terms to lock current rates.
Central Denver/RiNo: Premium Pricing, Character Buildings, Parking Challenges
The numbers:
- Vacancy: 7.6-8.5% (overall, but small-bay much tighter)
- Asking rents: $12-15.17/SF NNN
- Character: Industrial-chic, exposed brick, timber beams
What Central Denver offers: The highest-character industrial buildings in Denver—think converted warehouses with architectural appeal that doubles as brand identity. Excellent transit access (A-Line to DIA) and proximity to downtown, RiNo, and LoDo neighborhoods. Strong talent access for businesses employing younger workers who want urban locations.
Who thrives here:
- Creative industries (design, media, photography)
- Breweries and craft food production
- Customer-facing businesses where aesthetics matter
- E-commerce brands wanting an urban fulfillment presence
- Companies prioritizing talent attraction over cost
The trade-offs: The 7.6-8.5% vacancy masks constrained small-bay availability—that vacancy is concentrated in larger spaces and office conversions. Gentrification continues converting industrial buildings to creative and retail uses, reducing future industrial inventory. Truck access and parking are challenging; if your operation requires daily large-truck deliveries, Central Denver creates friction.
Realistic expectations: Premium pricing for a premium character. If your brand benefits from the RiNo/industrial-chic association, the premium may justify itself. If you’re purely operational (nobody sees your warehouse), you’re paying for character you don’t need.
DIA/Airport Corridor: Cheap Rent, Wrong Building Type for Small Users
The numbers:
- Vacancy: 4.3% (Airport Central), 11.9% (Airport East)
- Asking rents: $6-8/SF NNN
- Inventory: 102 million SF of predominantly 100,000+ SF facilities
What the Airport Corridor offers: Denver’s primary logistics hub with massive big-box facilities, excellent DIA cargo access, and the lowest rents in modern construction. New Class A buildings feature 32-40 foot clear heights designed for e-commerce fulfillment operations.
Who actually uses this submarket:
- Large-scale fulfillment operations (50,000+ SF)
- Air freight users needing DIA proximity
- 3PLs and logistics companies
- National retailers with regional distribution
Why it doesn’t work for small warehouse users: The 102 million SF of inventory is overwhelmingly 100,000+ SF facilities. Small-bay space in the Airport Corridor is scarce to non-existent. The buildings that exist are designed for a completely different use case—you’re not leasing 2,000 SF of a 500,000 SF distribution center.
Realistic expectations: Unless you need air freight access and can use a flex space outlier, look elsewhere. The low rents apply to building types that don’t meet small-warehouse needs.
Northwest Denver/US-36 Corridor: Tech-Adjacent, Balanced Positioning
The numbers:
- Vacancy: 8.3%
- Asking rents: $11.50-13/SF NNN
- Character: Mix of flex and light industrial
What Northwest Denver offers: Access to the Boulder-Denver tech corridor via US-36, with positioning that serves both markets. A mix of R&D flex space and traditional light industrial. Proximity to aerospace suppliers and tech companies creates a specific tenant ecosystem.
Who thrives here:
- Tech and R&D operations
- Aerospace component suppliers
- Companies serving both the Denver and Boulder markets
- Businesses needing flex (office + warehouse) configurations
The trade-offs: The tech-adjacent positioning creates specific competition—you’re contending with well-funded startups and established aerospace suppliers. Not ideal for businesses serving primarily the Denver metro (you’re paying for Boulder access you may not need).
Realistic expectations: Good fit if your customer base spans Denver-Boulder or you’re part of the aerospace/tech supply chain. Less compelling for purely Denver-focused operations.
Aurora: Variable Conditions, Healthcare and Distribution Focus
The numbers:
- Vacancy: Variable by specific location
- Asking rents: $8-14/SF NNN
- Character: Diverse—from older industrial to newer flex
What Aurora offers: Eastern Denver positioning with access to I-70 and I-225. Diverse building stock and tenant base, with particular strength in healthcare logistics (Anschutz Medical Campus proximity) and regional distribution.
Who thrives here:
- Healthcare and medical supply operations
- Regional distribution serving the east metro and the plains
- Businesses wanting I-70 east access
- Companies priced out of closer-in Denver submarkets
The trade-offs: Aurora’s large geographic area means conditions vary significantly by specific location. Some pockets offer compelling value; others carry the same pricing as closer-in submarkets without the access advantages. Due diligence on specific locations matters more here than in more homogeneous submarkets.
Southeast Denver/DTC: Professional Services, Defense Contractors
The numbers:
- Vacancy: 10-11%
- Asking rents: $10-14/SF NNN
- Character: Mix of flex and light industrial
What Southeast Denver offers: Proximity to the Denver Tech Center and the southeast business corridor. Strong fit for professional services, defense contractors, and businesses serving corporate clients. Generally, higher-end flex inventory with more office components.
Who thrives here:
- Defense contractors and suppliers
- Professional services with warehouse needs
- Companies serving DTC corporate clients
- Businesses want a suburban location with good interstate access
The trade-offs: Higher vacancy (10-11%) might signal weaker demand or might just reflect available inventory type. The flex-heavy inventory works for office-warehouse combinations but may not suit pure industrial operations.
I-76/Brighton: Lowest Cost, Highest Risk
The numbers:
- Vacancy: 20.8-22.1% (highest metro-wide)
- Asking rents: $4.27-6/SF NNN
- Character: Value-oriented, manufacturing focus
What I-76/Brighton offers: The lowest rents in the Denver metro by a substantial margin. Newer developments like Amprius Technologies’ 700,000 SF battery manufacturing facility demonstrate appeal for specialized users. Access to I-76 and connections toward Nebraska/I-80.
Who thrives here:
- Manufacturing operations prioritizing cost over location
- Businesses serving northern Colorado and Wyoming markets
- Companies where rent savings justify longer commutes
- Operations that don’t require central Denver access
The trade-offs: The 20.8% vacancy—nearly 5x the small-bay metro average—raises questions. Is it just available inventory, or does it signal demand concerns? The distance from central Denver affects talent access, carrier service, and drive times. If you’re serving Denver customers, every trip adds time.
Realistic expectations: Compelling for cost-focused operations with specific use cases. Risky for businesses that discover, post-lease, that the location creates problems they didn’t anticipate. Visit multiple times at different hours before committing.
Denver Submarket Warehouse Location Selection Framework
Prioritize location if:
- Customer visits happen at your facility
- Daily drive times to job sites/customers matter
- Talent attraction requires an urban/accessible location
- Carrier pickup times are critical
Prioritize cost if:
- Your operation is purely back-office (nobody visits)
- You’re an early-stage company and want to preserve cash
- Your customers are geographically dispersed (no local advantage)
- You can structure operations around longer drive times
Match submarket to operation type:
Business Type
Best Submarkets
Why
Contractors/trades
West, Southwest
Central access to job sites metro-wide
E-commerce fulfillment
Southwest, Aurora
Balance of access and cost
Creative/customer-facing
Central/RiNo
Character, brand alignment, talent
Aerospace suppliers
Northwest/US-36
Proximity to primes, R&D ecosystem
Manufacturing
I-76/Brighton
Cost priority, less location-dependent
Healthcare logistics
Aurora, Southeast
Anschutz proximity, distribution access
FAQ
Which Denver submarket has the lowest warehouse rents?
I-76/Brighton offers the lowest rents at $4.27-6/SF NNN—roughly 50-70% below premium submarkets. However, 20.8% vacancy raises questions about demand, and the location is furthest from central Denver. DIA/Airport Corridor offers $6-8/SF NNN, but small-bay inventory is virtually non-existent there. Southwest Denver ($10-14/SF NNN) and West Denver ($11-14/SF NNN) offer the best balance of pricing and small-bay availability.
Where should contractors look for warehouse space in Denver?
West Denver (1.2% vacancy, $11-14/SF) and Southwest Denver (2.0% vacancy, $10-14/SF) offer the best combination of central access and small-bay inventory for contractors. Both submarkets provide grade-level access suitable for work trucks and vans, plus positioning that minimizes drive time to job sites across the metro. Avoid the DIA corridor unless you specifically need airport access—small-bay inventory there is minimal.
Is the high vacancy in I-76/Brighton a red flag?
The 20.8% vacancy warrants caution but isn’t necessarily disqualifying. It may reflect available inventory type (larger spaces), recent speculative development, or genuine demand concerns. Visit the submarket multiple times, talk to existing tenants if possible, and assess whether the location trade-offs work for your specific operation. The rent savings (50-70% below premium submarkets) are real—but so is the distance from central Denver.
Which Denver neighborhoods work best for e-commerce businesses?
Southwest Denver and Aurora offer the best balance of cost, access, and carrier service for e-commerce fulfillment. Both provide reasonable rents ($8-14/SF NNN) with good highway access for shipping. Central Denver/RiNo works for e-commerce brands where urban aesthetic or last-mile positioning matters, but expect premium pricing ($12-15/SF). The DIA corridor seems logical for e-commerce but lacks small-bay inventory—it’s big-box territory.
How do I choose between character and cost in Denver warehouse space?
Define what character actually provides your business. If customers visit your facility, brand perception matters to your market position, or talent attraction benefits from an urban location, Central Denver/RiNo’s premium ($12-15/SF vs. $10-12/SF elsewhere) may generate ROI. If your warehouse is purely operational—nobody sees it, brand isn’t affected—you’re paying for character you don’t need. Match the submarket to how your business actually operates, not aspirations.
WareSpace Denver can help you evaluate location trade-offs based on your specific business needs—not just available inventory. Flexible terms mean you can adjust if your first choice doesn’t work out.
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