The Denver industrial real estate market is poised to grow at a steady pace, giving investors a lucrative opportunity to take advantage of a booming industry. Historic market rent growth has been the primary factor driving the industrial market in Denver to new heights. Although this market has not generated the same level of attention as some coastal markets, investors are offered numerous advantages when they buy industrial property in Denver.

Let’s understand if Denver’s industrial real estate is a good investment option.

Higher Yields

One of the topmost reasons why you should consider investing in industrial real estate is its potential to generate higher rental yields. The current asking rent has steadily increased in the past 12 months, influencing the average rental yield.

The reason for higher yield is that industrial property is leased on the triple net, i.e., the tenant pays for the monthly rent, maintenance, insurance, taxes, and more. The property owner is responsible only for the mortgage amount and other common maintenance fees. This enables you to drive a higher yield on your investment.

More Flexibility or Variety

Non-industrial properties are typically built for a particular purpose. For instance, an office building can be used for office purposes only. On the other hand, industrial spaces can easily be adapted to a wide range of uses. Additionally, there are varieties of industrial properties, which you can consider for investment.

This flexibility and a broad range of industrial property list in Denver make it an attractive investment option.

Low Cost of Maintenance

All types of properties need a certain level of upkeep; however, industrial buildings are low-maintenance for the property owner. Since the spaces are leased out on a triple net, the responsibility for repairs and maintenance lies with the tenant. Long-term leases and less tenant turnover further mean that the property owner does not require renovating the space too often.

Long-Term Leases

Another advantage of investing in industrial properties is they come with long-term leases, typically around 3-10 years or even as long as 25 years. Additionally, the tenant turnover rate is also lower. Hence, you can be assured of a steady flow of income in the long term.

The Bottom Line

There are several reasons why it is worthwhile to buy property in Denver, especially industrial spaces. The market is less vulnerable to market fluctuations, provides long-term cash flow, and will typically appreciate. TAG Industrial is a top real estate agent that provides a comprehensive industrial property list in Denver. We assist you in selecting a suitable investment option based on its type, location and long-term value-earning potential.

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