Consumers Help Industrial Market Hold Its Own

DENVER-The area warehouse/distribution market saw its overall vacancy rate in 2002 rise to 7.2% from 5.4%, according to Steve Hager, an industrial broker with Cushman & Wakefield. However, the vacancy rate is still below the national average, and is poised to do even better in 2003, he says.

“The industrial market has not seen the serious downfall like the office market has,” Hager says.

Distribution warehouses, which make up 60% of the 173-million-sf industrial market, have done better than the flex buildings, where the vacancy rate rose to 11.3% from 8.5% last year. Also, a number of large tenants, such as General Motors, are looking for new facilities in the coming year, he adds.