Back to Listings
Denver, CO

1187 East 68th Avenue

1187 East 68th Avenue, Denver, CO 80229
Property Type:
Square Feet:
29,486 sqft
Lot Size:
1.56 Acres
Price Per Square Foot:
Year Built:
* By downloading the Marketing Package (Offering Memorandum) you hereby agree to the CONFIDENTIALITY AND BUYER REGISTRATION AGREEMENT.

Investment Highlights

Investment Highlights

Investment Highlights

  • Rarely-Available Single-Tenant Industrial Property with 29,486 Square Feet, Including 6,540 Square Feet of Office Space and Outdoor Storage Unit
  • Class B Property with Class A Administrative Offices Built in 1984 and Updated in 2000
  • Building Has Heavy Power; Property is Zoned I-B, & Includes Outdoor Storage Unit
  • Incredible Highway Access – Just Off I-25/70th; Easy Access to 270 and I-76
  • 22-Minute Drive to Denver International Airport
  • Very Desirable Industrial Location with 2.1% Vacancy Rate
  • Ideal location on 68th/Downing – Corner Lot with Access from Downing and 68th

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire the property located at 1187 East 68th Avenue in Denver, Colorado. The subject property consists of approximately 29,486 square feet of space and is situated on 1.56 acres of land. Built in 1984 and updated in 2000, the asset features 6,540 square feet of office space. Single-tenant industrial properties of this size in this location are rarely available. The subject property is ideally located on the corner of 68th Avenue and Downing Street, easily accessible from both streets. The property has incredible highway proximity; Interstates 25 and 76 are located just a half mile away, Highway 36 is positioned within 1.5 miles, and the property has direct access to Interstate 70. Situated in the desirable Commerce City submarket, the property is only a 22-minute drive from the Denver International Airport.

With 13.0 million square feet of industrial space, Commerce City is a relatively large submarket, largely consisting of logistics facilities accounting for 10.3 million square feet. The remaining inventory pool is made up 2.3 million square-feet of specialized space and 460,000 square feet of flex space. With the rebound in economic activity, the vacancy rate has dropped to 4.1 percent at the beginning of Q4 from 5.5 percent a year earlier. Specifically, the vacancy rate on comparable buildings to the subject property sized 20,000 to 50,000 square feet sits at just 1.5 percent in Commerce City. Net absorption over the past year totaled about 181,000 square feet, 104 percent higher than the three- year average. Industrial rents have reversed a five-year trend of slowing growth rates this year, by rising to 3.6 percent annually. With only 13,000 square feet of industrial space currently underway in Commerce City, there will be little supply pressure on vacancies or rents for the foreseeable future. Selling cap rates have fallen to historic lows at 5.8 percent in 2021, and conversely, the average selling price per square-foot is at a record high of almost $158 (CoStar). While established, Commerce City offers industrial investors a sound growth opportunity.

A confluence of events turned Denver into one of the most active industrial markets in the country in the past decade. Robust demand in this regional market with strong economic growth this cycle is stemming from the growth of retail sales, employment, and industrial production in the metro area and the greater Colorado region. Furthermore, the emergence of the marijuana industry’s presence with the passing of Amendment 64 in November 2012 created a new demand driver this cycle, with new and relatively unsophisticated tenants operating with entirely different profit margins. Vacancies were below the long-term average even after 2019 shattered records with more than six million square feet of deliveries. Entering 2020, around 5.5 million square feet was under construction. Industrial rents are more than 60 percent above the peak of the previous cycle, one of the best performances in the nation. Investors remained enthusiastic about Denver’s industrial fundamentals by setting a record high for sales volume for the second straight year. More than $1.7 billion worth of assets traded in 2019, more than $200 million more than the previous year. Pricing continues to climb upward, albeit at a more modest pace than in past years, according to CoStar’s Pricing Trends (CoStar).

Adam Lewis
Denver Broker of Record
1225 17th Street, Suite 1800
Denver, CO 80202
Tel: (303) 328-2050
License CO: ER100091205
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2021 Marcus & Millichap. All rights reserved. (Activity ID: ZAC0050708)