Denver
Total Stock (million sq. ft.)
240.3
Vacancy Rate
6.1%
Availability Rate
8.7%
NNN Lease Rate
$8.22
Net Absorption (million sq. ft.)
1.7
240.3
Vacancy Rate
6.1%
Availability Rate
8.7%
NNN Lease Rate
$8.22
Net Absorption (million sq. ft.)
1.7
Metro Area Population
2.9 million
Unemployment Rate
2.9%
Annual Salary - Warehouse
$29,037
% of Pop - Associate Degree and Below
57.0%
% of Pop - Bachelor's Degree and Above
43.0%
2.9 million
Unemployment Rate
2.9%
Annual Salary - Warehouse
$29,037
% of Pop - Associate Degree and Below
57.0%
% of Pop - Bachelor's Degree and Above
43.0%
Airport
Denver International Airport
Total Cargo (millions of U.S. tons)
0.58
Seaport
N/A
TEU Volume - 2017 (millions)
N/A
Major Highways
I-25, I-70, I-76
Number of Intermodal Rail Hubs
2
Number of Class I Rail Lines
2
What is the term of a typical lease?
<50,000 sq. ft. - 3-5 years, >50,000 5-10 years
How is the rent quoted?
NNN
What is the tenant's option for termination or break?
Typically, the tenant does not have the right to terminate the lease.
Does the tenant have the option to renew? What is the length of the typical option?
Typically, the tenant has the right to renew for a lease length similar to the initial term.
How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 3 to 6 months in advance of lease expiration.
What is the typical rent-free period, if any?
Usually a rent-free period of 0-2 months.
What is the typical rent escalation?
2%-3% depending on lease term and credit.
Does the tenant have the right to sublet?
Typically to a related/subsidiary company and size of space occupied. Otherwise, sublets require the landlord’s written approval.
<50,000 sq. ft. - 3-5 years, >50,000 5-10 years
How is the rent quoted?
NNN
What is the tenant's option for termination or break?
Typically, the tenant does not have the right to terminate the lease.
Does the tenant have the option to renew? What is the length of the typical option?
Typically, the tenant has the right to renew for a lease length similar to the initial term.
How is the rent determined at renewal?
Typically, rents are determined by market rent at renewal and are generally negotiated 3 to 6 months in advance of lease expiration.
What is the typical rent-free period, if any?
Usually a rent-free period of 0-2 months.
What is the typical rent escalation?
2%-3% depending on lease term and credit.
Does the tenant have the right to sublet?
Typically to a related/subsidiary company and size of space occupied. Otherwise, sublets require the landlord’s written approval.
What is the unit of measurement of a typical lease?
Per sq. ft. per year
Does the leasable area include the common area?
Yes
Per sq. ft. per year
Does the leasable area include the common area?
Yes
What is the average rent for a warehouse greater than 50K sq. ft.?
$6.00 - $8.00 per sq. ft. per year
What is the average rent for a manufacturing facility greater than 50K sq. ft.?
$6.00 -$9.00 per sq. ft. per year
Is there a rent review during the lease?
No
What are the average service charges (OPEX)?
$2.00 -$4.00 per sq. ft. per year
Who is responsible for the service charges?
Tenant
What are the average taxes paid on the lease?
$1.50 -$3.00 per sq. ft. per year
Who is responsible for the property taxes?
Tenant
Who is responsible for the utilities?
Tenant
Who is responsible for the fit-out costs, if any?
Landlord, up to a negotiated amount
What is the typical security deposit?
1 month gross rent
How is car/truck parking paid?
Usually included in rent
Any other occupancy costs?
Insurance, CAM
$6.00 - $8.00 per sq. ft. per year
What is the average rent for a manufacturing facility greater than 50K sq. ft.?
$6.00 -$9.00 per sq. ft. per year
Is there a rent review during the lease?
No
What are the average service charges (OPEX)?
$2.00 -$4.00 per sq. ft. per year
Who is responsible for the service charges?
Tenant
What are the average taxes paid on the lease?
$1.50 -$3.00 per sq. ft. per year
Who is responsible for the property taxes?
Tenant
Who is responsible for the utilities?
Tenant
Who is responsible for the fit-out costs, if any?
Landlord, up to a negotiated amount
What is the typical security deposit?
1 month gross rent
How is car/truck parking paid?
Usually included in rent
Any other occupancy costs?
Insurance, CAM
What are typical agency fees? Who pays them?
Listing side: 3% of total net rent payment on the first five (5) years and 1.5% for the remaining term paid by the Landlord. 4-5% of total net rent payment for the first five (5) years and 2.5-3% for the remaining term to the outside broker representing the tenant.
Who is responsible for legal fees?
Each party is responsible for their own legal fees.
Any other transaction costs?
N/A
Listing side: 3% of total net rent payment on the first five (5) years and 1.5% for the remaining term paid by the Landlord. 4-5% of total net rent payment for the first five (5) years and 2.5-3% for the remaining term to the outside broker representing the tenant.
Who is responsible for legal fees?
Each party is responsible for their own legal fees.
Any other transaction costs?
N/A
What is the typical land tenure?
Land leaseholds uncommon; occasionally there is a leasehold for 50 years.
What is the terminology of the purchase agreement?
Purchase & Sale Agreement (PSA)
What is the average cost?
$90-$150 per sq. ft
What is the agency fee and who pays?
Typically, 3%-6% paid by seller
What is the typical LTV?
60% -80%
What is the average borrowing rate?
4%-5%
What is the mode of payment?
Paid at closing
What are the average transaction (closing) costs?
Attorney, survey, environmental audit and title fees (various)
Land leaseholds uncommon; occasionally there is a leasehold for 50 years.
What is the terminology of the purchase agreement?
Purchase & Sale Agreement (PSA)
What is the average cost?
$90-$150 per sq. ft
What is the agency fee and who pays?
Typically, 3%-6% paid by seller
What is the typical LTV?
60% -80%
What is the average borrowing rate?
4%-5%
What is the mode of payment?
Paid at closing
What are the average transaction (closing) costs?
Attorney, survey, environmental audit and title fees (various)
What is the average clear ceiling height?
22' -36'
Average number of dock doors?
1 Dock High door per 4,000 to 5,000 sq. ft.
Typical column spacing?
50' x 52'
Average parking ratio?
0.6 -1.3 / 1,000 sq. ft.
Sprinkler system?
ESFR sprinkler system
What is the typical power supply?
1,000 amps, 3 phase , 480 volt for each 100,000 sq. ft. of space
22' -36'
Average number of dock doors?
1 Dock High door per 4,000 to 5,000 sq. ft.
Typical column spacing?
50' x 52'
Average parking ratio?
0.6 -1.3 / 1,000 sq. ft.
Sprinkler system?
ESFR sprinkler system
What is the typical power supply?
1,000 amps, 3 phase , 480 volt for each 100,000 sq. ft. of space
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