Current warehouse and industrial lease rates across Denver submarkets with tenant guidance on market positioning.
Understanding Denver Warehouse Rates
Denver warehouse lease rates have stabilized following years of rapid increases. After rent growth exceeded 10% annually during 2021-2022, the market has normalized with rates essentially flat year-over-year at an average of $12.32 per square foot NNN. For tenants evaluating warehouse space in 2026, understanding rate variations by submarket, building type, and lease terms is essential for effective negotiation.
Denver Warehouse Lease Rates by Submarket
| Submarket | NNN Rate/SF | Gross Rate/SF | Trend |
| Central Denver | $12.00-14.00 | $15.00-18.00 | Stable |
| Southwest/Centennial | $10.00-12.00 | $13.00-16.00 | Stable |
| Northeast/I-70 Corridor | $9.00-11.00 | $12.00-15.00 | Soft |
| DIA/Airport Area | $6.00-8.00 | $9.00-12.00 | Soft |
| Boulder/Longmont | $12.00-15.00 | $15.00-19.00 | Stable |
| Northern Colorado | $9.00-11.00 | $12.00-14.00 | Stable |
Note: Rates are annual per square foot. NNN = Triple Net (tenant pays taxes, insurance, CAM). Gross = Landlord pays operating expenses.
Rates by Building Type
| Building Type | Typical NNN Rate Range |
| Class A Big Box (200K+ SF) | $7.00-10.00/SF |
| Class A Mid-Bay (50-200K SF) | $9.00-12.00/SF |
| Class A Small Bay (<50K SF) | $11.00-14.00/SF |
| Class B Warehouse | $8.00-11.00/SF |
| Flex/R&D Space | $12.00-16.00/SF |
| Cold Storage | $14.00-20.00/SF |
Source: SVN Denver Commercial, CBRE, JLL, Cushman & Wakefield Denver Industrial Reports Q4 2025
Understanding NNN vs Gross Leases
Triple Net (NNN) Leases
Most Denver warehouse leases are structured as triple net (NNN), where the tenant pays base rent plus their proportionate share of property taxes, insurance, and common area maintenance (CAM). NNN expenses in Denver typically range from $2.50-4.00 per square foot annually, depending on the property. When comparing spaces, always add NNN estimates to the base rent for accurate total occupancy cost comparison.
Gross Leases
Some smaller warehouse spaces, particularly in multi-tenant buildings, may be offered on a gross or modified gross basis where the landlord includes some or all operating expenses in the rent. Gross rents appear higher but may offer more predictable occupancy costs. Be sure to understand exactly what expenses are included.
Factors Affecting Lease Rates
Clear height: Modern buildings with 32-36 foot clear heights command premium rents over older buildings with 20-24 foot clearance.
Dock doors and loading: Buildings with adequate dock-high doors and drive-in access for the tenant’s operations lease faster and at higher rates.
Office finish: Spaces with existing office buildout may command premiums or may be included in TI negotiations.
Power: Heavy power users should verify electrical capacity. Upgrading power can be costly.
Lease term: Longer lease terms (5-7 years) may achieve better rates and more TI allowance than short-term deals.
Tenant credit: Strong-credit tenants may negotiate better terms than startups or less-established businesses.
Negotiation Tips for Tenants
Know your leverage: With vacancy elevated in some submarkets, particularly DIA and Northeast corridors, tenants have more negotiating power than in recent years.
Request free rent: In the current market, 1-3 months of free rent on a 5-year lease is often achievable, especially for larger spaces.
Negotiate TI allowance: Tenant improvement allowances of $5-15 per square foot are common depending on lease term and credit.
Cap annual increases: Try to cap annual rent escalations at 2.5-3% rather than accepting higher fixed increases.
Include options: Renewal options at predetermined rates and expansion rights provide valuable flexibility.
2026 Rate Outlook
Denver warehouse rates are expected to remain relatively stable through 2026. The combination of elevated vacancy in some submarkets and reduced new construction creates a balanced environment. Infill locations like Central Denver and Boulder will maintain firm rents due to scarcity, while big-box product in DIA may see continued softness until vacancy normalizes.
Tenants seeking space in 2026 should find a more balanced negotiating environment than the landlord-favorable conditions of 2021-2022, with opportunities for concessions particularly in submarkets with elevated vacancy.
Bottom Line
Denver warehouse lease rates vary significantly by submarket and building type, ranging from $6-8 per square foot NNN in the DIA area to $12-15 per square foot in Central Denver and Boulder. Tenants should evaluate total occupancy costs including NNN expenses, understand the factors driving rate variations, and leverage current market conditions to negotiate favorable terms. Working with an experienced tenant representative can help identify the best options and optimize lease negotiations.
About SVN Denver Commercial
SVN Denver Commercial provides tenant representation services to help businesses find and negotiate warehouse space. Contact us for current availability and lease rate guidance.