February 26, 2020— Avison Young announced today that it negotiated two long-term industrial leases in the Denver market for expanding businesses.
Avison Young Principal Dawn McCombs and Associate Kevin Hann, who are both based in the firm’s Denver office, represented tenants Braconier Plumbing & Heating Co. Inc. and Bray Sales Inc. in the two, 10-year leases.
“The Denver industrial market continues to see strong fundamentals and demand for manufacturing and distribution space,” says McCombs. “There is limited availability of space in several submarkets, making it a challenge for tenants looking to expand.”
Braconier Plumbing & Heating Co. Inc. leased 31,411 square feet of industrial space at 4925 Nome Street in Denver. The space is in the E. I-70/Montbello submarket, which remains one of the most logistically sought-after submarkets in Denver and had 1.4 million square feet of absorption in 2019, according to Avison Young research.
The tenant, a leading commercial plumbing and heating contractor, has been in business since 1906 and is expanding from a space in Englewood, CO. The landlord is The Realty Associates Fund XI Portfolio, L.P.
Bray Sales Inc. leased 16,281 square feet of industrial space at 16358 E. 33rd Drive in Aurora, CO, in the DIA/Pena Blvd. submarket. The company is an international manufacturer and distributor of values and other products for the flow control industry.
The Denver industrial market has 5.34 million square feet of space under construction market-wide, with 36.6% preleased. While the new construction has been a factor in pushing up vacancy, to 5.6%, there remains strong demand in the market, according to Avison Young research. Market fundamentals remain favorable, with asking rents increasing by 2.5% quarter-over-quarter to end the year at $8.73. This was due in large part to rent growth in the E. I-70/Montbello submarket, where rents increased 2% to $7.11 per square foot from Q3 to Q4 2019.