520 East 56th Avenue
- 520 East 56th Avenue, Denver, CO 80216
- Property Type:
- Square Feet:
- 12,000 sqft
- Lot Size:
- 0.69 Acres
- Price Per Square Foot:
- Year Built:
• 12,000 Square-Foot Updated Class B Industrial Property with 3,500 Square Feet of Class A Office Space
• Updated in 2017 with New Roof and HVAC. Recent Upgrades to Fiber-Optic Cables and Heavy Power
• Central Location Just Off of Washington Street and 1/2 Mile from I-25
• Ideally Located in Unincorporated Adams County
• Easy Access to I-70, I-25, and 270
• Less Than 10 Minutes to Downtown Denver; Less Than 30 Minutes to DIA
• I-1 Zoning
Marcus & Millichap is pleased to present the opportunity to acquire the property located at 520 East 56th Avenue in Denver, Colorado. The subject property consists of approximately 12,000 square feet of space and is situated on .69 acres of land. The Class B asset features 3,500 square feet of Class A office space. In 2017, the property received a new roof and HVAC system. Other recent work done on the property includes upgrades to fiber-optic cables and heavy power. Located just a half mile from Interstate 25 off Washington Street, the property is situated within unincorporated Adams County zoned for Industrial-1 usage. With easy access to other major highways, such as Interstates 70 and 270, the property is less than a 10-minute drive to downtown Denver and about 30 minutes to the Denver International Airport.
The subject property is located in Commerce City, a large submarket containing about 12.9 million square feet of industrial space. Logistics facilities account for the largest proportion of local supply, making up 79 percent of the inventory. The remaining supply includes 2.3 million square feet of specialized space and 460,000 square feet of flex space. Despite the economic impact of the coronavirus, the vacancy rate in Commerce City has remained relatively stable over the last year, ending the second quarter at 5.3 percent. The average market rent has increased by 2.5 percent annually to $10.21 per square foot, which is commensurate with the overall Denver market. The 26,000 square feet currently under construction in Commerce City represents only a fractional increase to the inventory (CoStar). With little pressure coming from new supply, rent growth should remain strong under present economic conditions.
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).