Most Colorado investors have never seriously considered industrial real estate. At first, it feels like a different world — big buildings, commercial tenants, unfamiliar terminology. But once you understand how the asset class actually works, it starts to look a lot like the multifamily investing you already know, just with fewer headaches.

To start, industrial real estate covers a wide range. On one end you have a 2,000 square foot bay rented to an HVAC company. On the other end, million square foot distribution centers broken into 20,000-50,000 square foot bays. For individual investors, though, the sweet spot is the middle — small-bay multi-tenant buildings in the $1-4 million range where spaces run 1,500 to 5,000 square feet. These attract the same kinds of small businesses that keep renewing: trade contractors, lumber companies, light manufacturers. Tenants that need space and don’t want to move. And in a triple net lease, those tenants pay your taxes, your insurance, and your maintenance costs. You collect the check.

That’s where Drew Williams comes in. Drew is an industrial and retail broker at North Peak Commercial Brokers in Denver. Over the last four years he’s focused on exactly this segment of the market — multi-tenant industrial along the Front Range — and in this episode he walks through the asset class from the ground up. Deal types, tenant profiles, how to read a cap rate, what flex industrial actually means, and how to think about risk when you’re underwriting a business instead of a household.

From there, the conversation turns to where the 2026 Denver industrial real estate market stands right now. Prices have pulled back. The ask-to-close gap has averaged 15% over the last 12 months. Meanwhile, rents have held flat at $12-13 per square foot triple net while expenses have climbed. On top of that, lenders now want 35-40% down and a 1.3 DSCR. It sounds like a tough market — and in some ways it is. Still, Drew explains why these conditions are also creating real opportunities for buyers who know how to find them.

In This Episode We Cover:

What industrial real estate actually is — deal types, tenant profiles, and the difference between small bay, flex, and single tenant
The three buyer profiles — passive investor, owner-user, and syndication group — with real Denver deal examples
How triple net leases work and why tenants pay taxes, insurance, and maintenance
Where the 2026 Denver industrial real estate market stands — cap rates, rents, price per square foot, and the 15% ask-to-close gap
The value-add playbook — converting gross leases to triple net and recovering expenses landlords have been absorbing for years
The three physical features that make a Denver industrial building significantly easier to lease and sell
The zoning trap that turns a promising purchase into an expensive mistake

If industrial real estate has ever been on your radar but felt too unfamiliar to pursue, this episode is the place to start — and if you’re already looking at the 2026 Denver industrial real estate market, Drew gives you the ground-level data to move with confidence.

Watch the YouTube Video

https://youtu.be/YNNetKjReDg

Timestamps

00:00 – Welcome & Introductions

01:30 – Drew’s Background – Tech consulting to leading North Peak’s industrial team

02:44– What Is Industrial Real Estate? – 2,000 sq ft to million sq ft complexes

03:50 – 3 Buyer Profiles – Passive investors, owner-users, and syndications

05:44 – Stabilized vs. Value-Add – Two main investment strategies

06:58 – What Is Flex Industrial? – Office-to-warehouse ratios explained ’

08:50– Underwriting a Stabilized Deal – 7% cap, 35-40% down, 1.3 DSCR

15:06– How Long Should You Hold? – 5-7 year holds and lease value decay

22:52 – What’s Driving the Price Pullback? – 15% ask-to-close gap, flat rents at $12-13/sq ft

24:22– Value-Add Playbook – Gross to triple net conversions and deferred maintenance

26:56– Lease-Up Timelines – Why deals now take 4-8 months to fill

29:35– Where the Opportunities Are – Yard space, clear heights, and access

35:55 Policy & Market Uncertainty – Why most investors are still holding

40:38– Energize Denver – 30,000 sq ft threshold and compliance fines

41:58– Multifamily Investors Moving to Industrial – Why triple net is winning

43:06 – Advice for Transitioning Investors – Start small-bay multi-tenant, know your zoning

48:15 Risk Tolerance – Matching your investment profile to the right deal

52:20 Zoning Pitfalls – How a change of use can kill a deal

55:42 – How to Reach Drew – 303-917-5232 | drew@northpeakcre.com

Connect with our Guests

Drew Williams:

drew@northpeakcre.com

303-917-5232

Links in Podcast

NorthPeakCRE

Drew referenced two active North Peak listings during the conversation — both available now in the Denver metro:

3600 S Huron St, Englewood CO 80110 — $1,750,000 8,000 SF brick flex building near the Santa Fe and 285/Hampden junction. Includes a 4,500 SF fenced yard, two drive-in doors, and a new 5-year NNN lease in place. Strong 1031 exchange candidate with long-term redevelopment upside.

2610 S Raritan Circle, Englewood CO 80110 — $9.90/SF 10,200 SF industrial available for lease. 18-foot clears, two drive-in doors, two dock doors, I-2 zoning. Works for an owner-user or investor with a tenant ready to move in.

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