Commercial construction reaches at least a 5-year high in the Denver area

Developers are racing to add workplaces, shopping sites and warehouses to the Denver area.

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Construction in LoDo.

Developers are racing to add workplaces, shopping sites and warehouses to the Denver area.

More than 8 million square feet of commercial real estate is currently under construction in the city, according to new CBRE Research released Monday.

The research for the first half of 2016 shows industrial, retail and office construction have reached at least a five-year high.

Demand is still creating healthy revenue for property owners despite average rent prices dipping slightly from recent months and struggling oil and gas companies and Sports Authority closings adding space back to the commercial real estate market.

Industrial sites in the Denver area are leasing for $7.28 per square foot on average, meaning a property owner with a 200,000-square-foot warehouse or manufacturing plant could fetch nearly $1.5 million from a tenant.

Retail spaces in the Denver area are garnering even more, $16.77 per square foot on average, and offices are raking in an average of $25.23 per square foot.

CBRE predicts the demand and value of commercial space will continue on a strong path going forward for the rest of the year.

Business & data reporter Adrian D. Garcia can be reached via email at agarcia@denverite.com or twitter.com/adriandgarcia.

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