Gains in Office, Industrial and Retail Activity Partially Offset Multifamily Decline
Commercial real estate investment activity declined year over year across Colorado’s Front Range, largely due to a significant drop in multifamily transaction volume.
In total, approximately $10.6 billion in commercial properties traded in 2025 throughout the Front Range — a region encompassing Denver, Boulder, Fort Collins, Greeley and Colorado Springs. That marks a decline from $12.2 billion recorded in 2024, according to CoStar data.
While overall sales volume decreased, stronger activity in the office, industrial and retail sectors helped cushion some of the impact from the multifamily pullback.
Multifamily Activity Retreats
Multifamily sales totaled $4.1 billion in 2025, down sharply from $6.5 billion in 2024. The figure is also well below the record-setting pace of 2021, when more than $12.5 billion in apartment properties changed hands.
Historically, multifamily assets have driven investment performance in the region, accounting for an average of 50% of total annual transaction volume over the past decade. In 2025, however, the sector represented just 38% of overall sales — its lowest share since 2011.
The slowdown comes as a wave of new apartment construction continues to impact market fundamentals across the Front Range. Vacancy rates remain near historic highs, limiting rent growth and intensifying competition among landlords. With softer performance metrics, many investors have adopted a more conservative stance toward acquisitions.
Industrial Sector Gains Ground
Industrial properties ranked as the second-most active asset class, generating $2.7 billion in sales in 2025. The sector accounted for 26% of total investment volume — its highest proportion in at least 15 years.
The year’s largest single transaction occurred in the industrial segment, when Target purchased a 530,000-square-foot build-to-suit distribution facility in Thornton for $231 million. The 95-acre property, located less than five miles north of one of the retailer’s Denver-area stores, includes a freezer and cooler warehouse designed to support regional operations.
Retail Investment Remains Steady
Retail transactions totaled $2.3 billion in 2025, reflecting stable performance despite elevated interest rates. The buyer landscape has shifted primarily toward smaller private investors focusing on single-tenant, net-leased properties priced below $5 million.
Many of these investors rely on all-cash purchases, often leveraging 1031 tax-deferred exchanges. This strategy reduces dependence on financing markets, distinguishing them from larger institutional buyers and real estate investment trusts.
Office Market Shows Modest Improvement
Office assets remained the least active property type in the Front Range, with approximately $1.6 billion in transactions in 2025. Still, that figure represents an improvement from $1.3 billion in 2024.
Several of the year’s most notable office deals took place in Denver, including the $135 million sale of One Platte in July and the $132.5 million transaction of Seventeenth Street Plaza in February.
Source: Original reporting by Jeannie Tobin, CoStar News.
