Northern Colorado, CO Industrial Market Report Q3 2025

Key Findings

Market Stability Amid Uncertainty: Sales volume in Q3 2025 remained largely consistent with Q3 2024. Although third quarters typically record lower activity, the data indicates a continued cooling trend amid economic uncertainty, including elevated debt levels, ongoing trade tensions and tariffs, and the federal government shutdowns. Average price per square foot has returned to pre-COVID levels, signaling a narrowing bid-ask gap and greater seller alignment with market realities.
Shifts in Leasing Activity & Time on Market: Despite a modest year-over-year increase, months on market declined 6.8% quarter-over-quarter, indicating that inventory is beginning to move more quickly than in recent quarters. Meanwhile, months to lease rose 41.5% year-over-year and 5.5% quarterover-quarter, reflecting a steady increase in lease renewals as more companies prioritize stability over relocation. This has led to longer turnover periods, keeping active inventory moving at a slower pace than in previous years.
Tale of Two Vacancies: While overall vacancy rates for industrial and flex units sized 5,000–200,000 SF reached a decade high of 9.0% in Q3 2025, the story is different for smaller unit sizes, which continue to see strong demand. Units between 5,000 and 20,000 SF, for example, recorded a vacancy rate of 6.5%—250 basis points lower than the broader SF range—highlighting the resilience of smaller spaces in the current market.

Northern Colorado Demographics

Boulder, Fort Collins, & Greeley, CO | Source: CoStar Group, Inc.

Households: 435,504
Current Population: 1,086,321
Median Household Income: $95,889

Northern Colorado National Accolades

Source: Northern Colorado Co.

No 1. For Labor Supply
No. 4 For Economic Climate

Population Comparison by Submarket

Source: CoStar Group, Inc.

Focused Metrics

5K-200K SF | Industrial & Flex Properties

Northern Colorado Industrial Sales Activity

The Northern Colorado industrial market recorded $68.24 million in total sales volume during Q3 2025, representing a 3.5% YOY increase from $65.92 million in Q3 2024 but a sharp 56.8% decline from the $157.92 million posted in Q2 2025. Q3 marked the lowest quarterly total of 2025, a measured pause in deal flow after a strong mid-year surge. The slowdown in sales volume underscores a cautious investment climate, as buyers contend with high borrowing costs and macroeconomic uncertainty, including elevated debt, trade tensions, and government shutdowns.

At the same time, a return to pre-COVID pricing signals growing market alignment and stability. Average price per SF settled at $145/SF, down 8.8% quarter-over-quarter from $159/SF in Q2, yet up 4.3% YOY from $139/SF in Q3 2024. This pattern reflects the continuation of a multi-year cooling trend, where valuations have gradually adjusted to reflect more sustainable market fundamentals. The recent quarterly dip is less a sign of weakening demand and more an indication of growing alignment between buyers and sellers, as narrowing bid-ask gaps allow transactions to proceed at more market-consistent pricing levels. Average time on market improved to 6.8 months in Q3 2025, down 6.8% from the previous quarter, though still 1.5% higher than a year earlier. Listing durations have increased since early 2023, however recent data suggests a turning point as improved pricing transparency and more realistic seller expectations begin to speed up transactions.

Q3 2025 illustrated a period of recalibration for Northern Colorado’s industrial sales landscape, characterized by steady pricing, moderated activity, and signs of restored balance between buyers and sellers. As the market continues to adjust, the groundwork appears set for more stable deal making heading into year-end.

Northern Colorado Industrial Sales Volume & Price Per SF

5K-200K SF | Industrial & Flex Properties | Source: CoStar Group, Inc.

Focused Metrics

5K-200K SF | Industrial & Flex Properties

Northern Colorado Industrial Vacancy & Rents

Northern Colorado’s industrial vacancy rose to 9.0% in Q3 2025, marking a 15.4% increase year-over-year from 7.8% in Q3 2024 and a 4.7% gain quarter-over-quarter from 8.6% in Q2 2025. This level represents the highest vacancy rate in the past decade, underscoring a market still recalibrating after an extended period of expansion. The rise reflects ongoing tenant hesitation amid economic uncertainty, with many companies opting to renew leases rather than relocate. Notably, 5K-20K SF unit sizes continue to outperform the broader market, highlighting their versatility and ability to cater to a broader range of tenants and industries.

Vacancy Rate

Source: CoStar Group, Inc.

Average asking rents edged down 0.6% quarter-over-quarter to $13.76 per square foot, and were essentially f lat year-over-year, down just 0.1% from Q3 2024. Despite the mild softening, rents remain remarkably stable relative to national trends, which continue to show sharper declines. This steadiness suggests that landlords are prioritizing occupancy and tenant retention over rent growth—a dynamic consistent with the broader market adjustment period.

Market Asking Rent Per SF

Source: CoStar Group, Inc.

Meanwhile, time-to-lease extended further to 5.8 months in Q3 2025, up 5.5% quarter-over-quarter and 41.5% year-over-year, reflecting longer decision-making cycles and increased renewal activity. This sharp year-overyear increase is largely driven by rapid expansion from new projects in recent years, combined with companies becoming more risk-averse and less inclined to relocate unless absolutely necessary, keeping active inventory relatively stagnant compared to previous years. Longer leasing periods indicate a more measured market, as tenants balance their operational needs against rising costs. Overall, the market appears to be entering a more sustainable phase, where modestly flat rent levels and elevated vacancies signal a rebalancing after years of robust growth.

Focused Metrics

5K-200K SF | Industrial & Flex Properties

Northern Colorado Industrial Construction

Construction activity in Northern Colorado’s industrial market continued to lose momentum through Q3 2025, signaling an extended period of development restraint. Projects under construction totaled 381,898 square feet, down 40.5% from the same quarter last year and 3.4% from Q2, marking the lowest pipeline volume in nearly a decade. New construction starts remained limited at just 16,294 square feet, representing a staggering 88.3% year-over-year and 18.5% quarter-over-quarter decline. The slowdown reflects a cautious stance among developers facing tempered tenant demand, expensive construction financing, and escalating material costs amplified by federal trade restrictions. This has ultimately led to a prominent decline in year-over-year starts. With speculative activity now virtually absent, development is increasingly concentrated in build-to-suit and pre-leased projects, underscoring a more selective and risk-averse approach to new industrial construction across the region.