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. Energize Denver — Check If Your Building Is Covered
