Q3 2021
Northern Colorado's Industrial Market is Maturing
Industrial Vacancy Chart
Northern Colorado continues to be one of the fastest areas for population growth in the United States. Larimer and Weld County were among the three fastest-growing metro areas in one of the nation’s fastest-growing states over the last decade. Weld County grew by 30% and Larimer County grew by 20%.

Due to its continued population growth and close proximity to major arterial roadways, the epicenter of Northern Colorado has proved to be a successful distribution location for companies such as Walmart, Amazon, Coca-Cola USA and High Country Beverage. Over the past decade the amount of industrial space in Larimer and Weld County has grown by 4.6 million square feet, for a total of just under 42 million square feet as of Q3 2021.

Industrial Absorption, Deliveries & Vacancy Chart
No Slow in Demand

The current vacancy rate among industrial properties in Larimer and Weld County is 3.8%, with an availability rate of 7.8%. Market rent has grown 6% year over year with a current average market rent of $10.71 per square foot, exceeding pre-pandemic market rents. Market sale prices topped $127 per square foot in Q3 2021, with an average market cap rate of 6.98%, historic low was 6.91% in Q4 2020. Sales volume in the past year reached $317 million, which is the highest annual industrial sales volume in the past decade.

In August, the 62,280 square foot warehouse at 840 Diamond Valley Parkway in Windsor sold for $8.1 million or $130 per square foot. Tenants at the property include Bold Renewables and Vestas Wind Systems.

The demand for industrial space has rebounded since the onset of the pandemic, where the area experience a lull in demand. 12-month net absorption as of Q3 2021 was 548,000 square feet which equates to a 7,400% increase from the prior period. As of Q3 2021, 1.6 million square feet of industrial space was under construction in Larimer and Weld County, with most of the new construction primarily taking place near I-25 and US 34. The majority of the projects under construction are speculative and will cater to larger tenants, seeking space for distribution centers or manufacturing.

Source: CoStar, CoStar News
Current Notable Industrial Developments in NOCO
Axis 25
4510 & 4550 Byrd Drive, Loveland, CO:
  • Class A industrial/flex campus, two buildings totaling nearly 200,000 SF
  • Building 1 – 100,580 SF
  • Building 2 – 95,114 SF
  • Consisting of 14 acres along I-25, near Crossroads Boulevard
  • Owned and developed by Etkin Johnson Real Estate Partners
Centerra Industrial Park
TBD Viking Way, Loveland, CO:
  • Building VII, comprised of 123,037 SF, is under construction, completion scheduled for Q4 2021
  • Building V completed in 2020 (122,807 SF – 18,221 SF available)
  • Building VI completed in 2020 (122,807 SF – 24,654 SF available)
  • Owned and developed by McWhinney
Iron Horse Business Park, 3607 Ronald Reagan Blvd., Johnstown, CO:
  • New Class A, 68,750 SF industrial building, completed summer 2021
  • 85,000 SF of fenced outdoor yard
  • 165-acre business park currently home to FedEx and Canyon Bakehouse
  • Owned and developed by McWhinney

4200 Ronald Reagan Blvd., Johnstown, CO:
  • 91,000 SF speculative industrial expansion of preexisting High Country Beverage building
  • Completed spring 2021
  • Temperature controlled warehouse
  • Owned by High Country Beverage

Loveland Commerce Park, CR 30 & I-25, Larimer County:
  • 152-acre proposed industrial development north of Fort Collins Loveland Airport
  • Currently in the process of being annexed into the City of Loveland
  • Proposed PUD zoning

Source: CoStar
Trade at 2534
Johnstown, CO:
  • New Class A, 280,323 +/- SF, 3-building industrial park
  • Building 1 – 72,896 SF, under construction, delivery spring 2022
  • Building 2 – 145,008 SF, under construction, 2022 delivery
  • Building 3 – 62,419 SF, proposed
  • Owned and developed by United Properties
Mulberry Connection
4036 & 3874 Redman Drive, Fort Collins, CO:
  • New Class A industrial park, summer 2022 completion
  • Two industrial buildings totaling 164,200 SF with I-25 exposure
  • Building 1 – 71,200 SF
  • Building 2 – 93,000 SF
Realtec is here to help navigate the changing market
CoStar Market Reports - Larimer and Weld County
Q3 2021