DENVER — Small warehouse space is in high demand as businesses turn toward e-commerce and need the space to store product.
Jeremy Spira is the Vice President of Leasing and Development with KEW Realty Corporation. He shared with 9NEWS why we're seeing this influx.
(Editor’s note: This interview has been edited for context and clarity.)
Why are we seeing an increase in demand for small warehouse space in the Denver Metro area?
Spira: A lot of our mom-and-pop kind of start-up tenants are heavily involved in e-commerce and selling their goods to either Amazon or direct to consumers so it’s a big part of it but we have a pretty diversified portfolio tenants.
Kew Realty has seen that. We’ve been 100% leased probably since 2015 I would say, most of the time.
Especially close to the city it’s hard to find smaller warehouse space especially for the start-up. We get inquiries all the time for, 'I’m just starting a business I need a start up space, let me know when the next thing’s available' and it’ll be years down the line and I say, 'I’m sorry we just don’t have it right now.' The value of existing buildings has gone up a lot.
Has the demand caused the leasing price to increase for small warehouse spaces?
Spira: When I started in this industry in 2013, rents were about half of what they are now so its about doubled. It's been such a stable market that groups are really look to invest in warehouse and land.
Do we think this demand is going to last a while?
Spira: If I had a crystal ball I could tell you but it seems like it’s on a steady trajectory and we’ll see what happens with all these new larger warehouses being built.
How quickly do small spaces get leased?
Spira: Often times before the previous tenant has left. We try to start marketing spaces at least six months ahead of time so very often we’ll have a lease ready before the previous tenant leaves.
What is your advice for small business owners looking for warehouse space?
Spira: You know you just kind of have to be patient, talk to building owners and see if you can sublet part of someone else's space. Maybe there is a company not utilizing all their footprint and/or just wait until something comes available and move quickly because it goes very quickly.
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