Why Is Aurora's I-70 Corridor One of the Premier Industrial Markets in the Mountain West?
Aurora's industrial market has established itself as one of the most strategically important logistics and distribution corridors in the western United States, driven by proximity to Denver International Airport, direct highway access via I-70 and E-470, and a massive inventory of modern warehouse and distribution facilities. With approximately 40 million square feet of industrial inventory concentrated along the I-70 corridor, Aurora is the eastern anchor of the Denver metro's industrial ecosystem and a magnet for national and regional distribution operations.
The numbers tell a compelling story for industrial investors. Aurora's I-70 corridor sits approximately 12 miles from Denver International Airport, the fifth-busiest airport in the nation, which handled roughly 69 million passengers in 2024 and serves as a growing air cargo hub. The Majestic Commercenter alone encompasses more than 1,600 acres with a planned build-out of 21 million square feet, making it one of the largest master-planned industrial parks in the Denver metro. Major tenants including Amazon, Home Depot, Kroger, Wayfair, Dollar General, and UPS have established significant operations in Aurora, validating the corridor's strategic importance.
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The metro Denver industrial market experienced vacancy increases in 2024 and 2025 as new speculative construction absorbed, with overall vacancy reaching approximately 7.9% in the third quarter of 2025. However, average asking rents have held relatively firm at around $12.00 per square foot annually, reflecting the structural demand for well-located logistics space. The construction pipeline is beginning to moderate as developers respond to the higher vacancy environment, setting the stage for supply-demand rebalancing that will benefit well-positioned Aurora industrial assets.
For borrowers seeking industrial financing in Aurora, Clear House Lending connects investors and developers with a network of over 6,000 commercial lenders to find the most competitive rates and terms for warehouse acquisitions, build-to-suit projects, and value-add investments.
What Industrial Loan Programs Are Available for Aurora Properties?
Aurora's industrial financing market offers multiple loan programs suited to different property profiles, tenant structures, and investment strategies. The optimal program depends on whether you are acquiring a stabilized asset, developing a new facility, or repositioning an older building.
Conventional Commercial Mortgages represent the most common financing vehicle for stabilized industrial properties in Aurora. Banks and credit unions offer rates between 5.5% and 7.0%, 5 to 10 year terms with 20 to 25 year amortization, and LTV up to 75%. These loans require strong property cash flow with a DSCR of 1.25x or higher and stable tenancy. Colorado-based lenders including FirstBank and Vectra Bank actively lend on Aurora industrial properties, as do national banks with Denver metro lending teams.
CMBS (Conduit) Loans provide non-recourse permanent financing for larger industrial assets valued at $2 million or more. Rates range from 5.8% to 7.5% with 5 to 10 year terms and 25 to 30 year amortization. CMBS lending is particularly well-suited for single-tenant NNN industrial properties with creditworthy tenants and long-term leases. The non-recourse structure limits the borrower's personal liability to standard "bad boy" carve-outs.
Bridge Loans provide short-term capital for industrial acquisitions, tenant transitions, and value-add repositioning. Aurora bridge lenders offer 12 to 36 month terms with rates between 8.0% and 11.0%, LTV up to 80%, and closing timelines as fast as 5 to 15 business days. Bridge financing is active in Aurora for investors acquiring multi-tenant industrial properties with lease-up opportunities or older buildings requiring modernization.
SBA Loans serve owner-occupants acquiring or expanding industrial facilities. The SBA 504 program offers down payments as low as 10%, rates between 5.75% and 6.75%, and terms up to 25 years. Aurora's SBA lending market is particularly strong for manufacturing companies, distribution firms, and service businesses that occupy at least 51% of the building. The SBA 504 program works especially well for small to mid-size businesses purchasing facilities in the $500,000 to $5 million range.
DSCR Loans qualify borrowers based on property cash flow rather than personal income documentation. Aurora DSCR lenders offer rates between 7.0% and 9.0%, LTV up to 80%, and terms of 5 to 30 years. These loans are ideal for investors scaling industrial portfolios who prefer simplified qualification requirements.
Construction Loans finance ground-up industrial development with rates between 7.0% and 9.0%, 18 to 36 month terms, and up to 70% of total project cost. Aurora's active development pipeline, particularly along the I-70 corridor, generates ongoing demand for construction financing from both speculative developers and build-to-suit projects.
Use the commercial mortgage calculator to estimate monthly payments for different industrial loan scenarios in Aurora.
Which Aurora Industrial Submarkets Attract the Most Investment?
Aurora's industrial geography is defined by several distinct corridors and parks, each offering different risk and return profiles for investors and different underwriting characteristics for lenders.
Majestic Commercenter is Aurora's flagship industrial development and one of the largest master-planned industrial parks in the Denver metro. Spanning more than 1,600 acres with a planned build-out of 21 million square feet, Majestic offers Class A logistics and distribution facilities with direct I-70 access and proximity to DIA. Major tenants include Amazon, Home Depot, Kroger, and Wayfair. Vacancy in this submarket runs between 5% and 7%, reflecting strong demand for modern, high-clear-height logistics space. Lenders view Majestic Commercenter very favorably due to the institutional tenant base and master-planned infrastructure.
HighPoint Logistics Park is transforming a 125-acre parcel near DIA into a 2.2 million square foot industrial complex. Several buildings have been completed with built-to-suit facilities for Dollar General, Whole Foods, and Xcel Energy. Additional phases continue under development. Vacancy remains tight at 4% to 6%, and asking rents of approximately $13.00 per square foot reflect the premium location and modern building specifications.
Aero 70 Logistics Park represents the newest generation of Aurora industrial development, delivering four new buildings in late 2025 with 32 to 36 foot clear heights, Class AA features, and dedicated trailer parking. These modern specifications meet the evolving requirements of e-commerce fulfillment and third-party logistics companies that demand taller clear heights, wider column spacing, and more dock-door density than older facilities provide.
Central I-70 Corridor contains approximately 10 million square feet of older industrial inventory, including manufacturing buildings, multi-tenant warehouse facilities, and flex space. Vacancy runs higher at 8% to 10%, and asking rents of approximately $10.50 per square foot reflect the older building stock. This submarket offers value-add opportunities for investors willing to modernize facilities, upgrade loading infrastructure, and attract new tenants.
South Aurora along the I-225 Corridor contains approximately 3 million square feet of light industrial and flex space, with vacancy between 7% and 9%. This submarket appeals to smaller businesses and service companies that need proximity to Aurora's residential population rather than highway-based logistics.
What Are Current Cap Rates and Returns for Aurora Industrial Properties?
Industrial cap rates in Aurora reflect the sector's strong fundamentals and institutional demand, with significant variation by property class, tenant quality, and building specifications.
Class A logistics facilities with modern specifications (32 to 36 foot clear heights, ESFR sprinkler systems, ample dock doors) and creditworthy tenants trade at cap rates between 5.0% and 5.8%. Pricing for these assets ranges from $150 to $200 per square foot, depending on tenant credit, lease term, and location within the I-70 corridor. Institutional REITs and national investors are the primary buyers, and CMBS or agency financing provides the most competitive terms.
Class B warehouse properties from the 1990s and 2000s with 24 to 28 foot clear heights trade at cap rates between 5.8% and 6.5%, with pricing of $100 to $150 per square foot. Regional investors actively target these properties, which generate solid cash flow and can benefit from targeted improvements to loading areas, office finishes, and building systems.
Class C and older industrial buildings present the highest-yield opportunities, with cap rates ranging from 6.5% to 8.0% and pricing of $60 to $100 per square foot. These properties often have lower clear heights, limited dock access, and dated building systems, but they offer significant value-add potential through renovation and re-tenanting. Bridge financing is the most common approach for these acquisitions.
Flex and R&D space commands cap rates of 6.0% to 7.0% with pricing between $120 and $160 per square foot. The Fitzsimons area and the Colorado Science and Technology Park generate demand for research and development space that commands premium rents relative to standard warehouse product.
Borrowers should use the DSCR calculator to model cash flow coverage for industrial acquisitions and determine optimal leverage.
How Does DIA Proximity Impact Aurora Industrial Financing?
Denver International Airport's presence approximately 12 miles from Aurora's industrial corridor creates a powerful competitive advantage that directly influences property values and lending terms.
DIA is the fifth-busiest airport in the United States and continues to expand its passenger and cargo capabilities. The airport handled approximately 69 million passengers in 2024, and ongoing terminal and concourse expansions support growing air cargo operations. Companies requiring same-day air freight access, international logistics connectivity, or proximity to airport-related employment increasingly choose Aurora industrial locations over competing submarkets in the Denver metro.
This DIA proximity advantage manifests in several ways that benefit Aurora industrial borrowers. Higher rents for properties within a 15-minute drive of the airport, as tenants pay a premium for logistics efficiency. Lower vacancy in the eastern I-70 corridor compared to industrial submarkets farther from the airport. Stronger tenant credit as national and international logistics companies with investment-grade ratings choose Aurora for their Denver metro operations. More favorable lending terms as lenders recognize the structural demand driver that airport proximity provides.
The ongoing development of DIA's facilities, including a planned $1.5 billion Great Hall renovation and expanded cargo capabilities, will further strengthen the competitive position of Aurora's industrial corridor. Industrial properties along E-470 and the eastern segments of I-70 benefit most directly from this proximity.
Lenders evaluating Aurora industrial loans factor DIA proximity into their risk assessment, often providing 10 to 25 basis points of rate improvement for well-located properties compared to industrial assets in less strategic locations within the metro.
What Major Development Projects Are Expanding Aurora's Industrial Base?
Aurora's industrial development pipeline includes several large-scale projects that will add millions of square feet of modern logistics space over the next several years, creating financing opportunities for developers and investors.
The Majestic Commercenter continues to expand toward its ultimate 21 million square foot build-out. New phases are delivering additional Class A logistics buildings with modern specifications including 36-foot clear heights, cross-dock configurations, and ESFR sprinkler systems. The development's master-planned infrastructure, including roads, utilities, and stormwater management, reduces development risk and accelerates project timelines for new construction.
HighPoint Logistics Park has completed several phases and continues to develop new buildings on its 125-acre site. The park's proximity to DIA and E-470 makes it attractive to e-commerce and distribution tenants requiring air cargo access. Built-to-suit development is particularly active, with companies like Dollar General and Whole Foods commissioning custom facilities.
Aero 70 Logistics Park delivered four new industrial buildings in late 2025, adding approximately 1.5 million square feet of Class AA logistics space to the Aurora market. These buildings feature the tallest clear heights and most advanced specifications of any Aurora industrial product, targeting the highest-credit tenants in the logistics sector.
Construction financing for Aurora industrial development typically structures at 60% to 70% of total project cost, with 18 to 36 month terms and interest-only payments during the construction period. Pre-leasing is not always required for well-located speculative developments in Aurora, though lenders offer more aggressive terms when a significant portion of the building is pre-leased to creditworthy tenants.
Contact Clear House Lending to discuss construction and permanent financing for Aurora industrial development.
What Industrial Lease Structures Do Aurora Lenders Prefer?
The lease structure of an industrial property significantly influences lending terms, as lenders evaluate the predictability and stability of cash flows when underwriting loans.
Triple Net (NNN) Leases receive the most favorable lending treatment because the tenant is responsible for property taxes, insurance, and common area maintenance in addition to base rent. This structure minimizes the landlord's expense risk and provides highly predictable cash flows. NNN leases with creditworthy tenants and remaining terms of five years or more command the most competitive financing terms. Many Aurora industrial properties, particularly single-tenant logistics facilities in Majestic Commercenter and HighPoint, are leased on a NNN basis.
Modified Gross Leases are common in multi-tenant industrial buildings where the tenant pays utilities and janitorial while the landlord covers taxes, insurance, and common area maintenance. These leases provide moderate cash flow predictability, and lenders underwrite them favorably as long as the operating expense structure is clearly documented and the building's expense history is stable.
Full Service Gross Leases place the greatest expense burden on the landlord, as the tenant pays a flat rent amount and the landlord covers all operating expenses. Lenders underwrite these leases more conservatively because expense increases directly reduce the landlord's net operating income. Full service gross leases are less common in Aurora's industrial market but may be found in flex and small-bay industrial properties.
Lenders also evaluate lease rollover risk carefully. A property where the majority of leases expire within two years of loan maturity receives more conservative underwriting than one where lease terms extend well beyond the loan term. Aurora industrial borrowers can improve their financing terms by negotiating lease extensions prior to refinancing or by demonstrating strong re-leasing velocity in their submarket.
What Should Aurora Industrial Borrowers Know About Environmental Due Diligence?
Environmental considerations play a significant role in industrial property financing, and Aurora's industrial corridor has specific environmental factors that lenders evaluate carefully.
All commercial lenders require a Phase I Environmental Site Assessment (ESA) as a condition of financing. This report reviews historical property uses, aerial photographs, regulatory databases, and surrounding site conditions to identify potential environmental contamination. For Aurora industrial properties, Phase I assessments cost between $2,500 and $5,000 and take two to four weeks to complete.
If the Phase I identifies recognized environmental conditions (RECs), the lender will require a Phase II assessment involving soil and groundwater sampling. Phase II costs range from $10,000 to $50,000 depending on the scope of investigation needed. Properties with confirmed contamination may still be financeable, but lenders will require environmental insurance, remediation plans, or purchase price adjustments to mitigate the risk.
Aurora's industrial corridor has a generally favorable environmental profile compared to older industrial areas in other cities, largely because much of the development is relatively recent and built on previously agricultural or undeveloped land. However, properties near former military installations, gas stations, dry cleaners, or manufacturing operations may require additional environmental scrutiny.
Lenders view Colorado's voluntary cleanup program favorably, as it provides a clear regulatory pathway for addressing contamination and obtaining no-further-action determinations. Borrowers acquiring industrial properties with known environmental issues should engage environmental counsel and consultants early in the due diligence process to structure the transaction and financing appropriately.
How Do Aurora Industrial Rents Compare to Other Denver Metro Submarkets?
Aurora's industrial rents reflect its strategic location and modern inventory, positioning it competitively within the broader Denver metro industrial market.
Average asking rents along Aurora's I-70 corridor run approximately $12.00 per square foot annually for Class A logistics space, with newer developments in HighPoint and Aero 70 commanding $13.00 to $13.50 per square foot. These rates are competitive with other premier Denver metro industrial submarkets including the I-76 corridor, Central Denver, and the I-25 South corridor.
Industrial rent growth in the Denver-Aurora metro moderated significantly from the double-digit increases of 2021 and 2022. Actual rent growth was approximately 3% in 2024 and an estimated 2% in 2025, reflecting the elevated vacancy from new supply. However, forecasts project a return to 4% to 5% annual rent growth by 2027 as the construction pipeline contracts and net absorption strengthens.
For lenders, Aurora's industrial rent levels are important because they determine the property's net operating income, which drives loan sizing through DSCR requirements. Properties with rents at or above market levels receive more favorable underwriting, while properties with below-market rents may actually benefit from value-add financing strategies where the lender underwrites to a projected stabilized rent level.
Aurora industrial landlords benefit from relatively low operating expenses compared to many competing markets. Colorado's property tax rates are moderate, insurance costs for modern industrial buildings are reasonable, and the dry climate reduces maintenance and repair costs compared to markets with more severe weather patterns.
What Economic Factors Support Long-Term Industrial Investment in Aurora?
Aurora's industrial market benefits from several structural economic factors that support long-term investment returns and favorable financing conditions.
E-commerce growth continues to drive demand for modern logistics space. The ongoing shift from traditional retail to online commerce requires approximately three times as much warehouse space per dollar of revenue as traditional retail distribution. Aurora's proximity to DIA, combined with its highway infrastructure and access to a growing metro population exceeding 2.99 million, makes it a natural location for e-commerce fulfillment operations.
Supply chain reshoring and nearshoring is bringing manufacturing and distribution operations back to the United States, with Colorado's central location and skilled workforce attracting new industrial tenants. Aurora's available land and modern infrastructure position it to capture a share of this reshoring activity.
Population growth in the Denver-Aurora metro drives demand for last-mile distribution facilities. As the metro area's population continues to grow, retailers, grocers, and delivery companies need additional warehouse space to serve the expanding consumer base.
Transportation infrastructure investments including highway improvements, DIA expansion, and rail connectivity upgrades are strengthening Aurora's logistics advantages. The I-70 corridor remains the primary east-west freight route through Colorado, and Aurora properties along this corridor benefit directly from ongoing infrastructure maintenance and capacity improvements.
Aerospace and defense demand creates specialized industrial requirements in Aurora. Companies like Raytheon, Northrop Grumman, and Boeing require secure manufacturing and testing facilities, and Buckley Space Force Base generates demand for defense-related industrial space. This sector provides stable, long-term tenancy that lenders value.
Frequently Asked Questions About Aurora Industrial Loans
What is the minimum loan amount for an Aurora industrial property?
Minimum loan amounts for Aurora industrial properties vary by program. SBA 504 loans start at approximately $500,000. Conventional bank loans typically begin at $500,000 to $1 million. CMBS loans require a minimum of $2 million. Bridge lenders may fund deals as small as $250,000. Construction loans for speculative development generally start at $2 million or more. Clear House Lending's network includes lenders across all size ranges for Aurora industrial financing.
Do Aurora industrial lenders require environmental assessments?
Yes. Virtually all Aurora industrial lenders require a Phase I Environmental Site Assessment as a condition of financing. The Phase I reviews the property's environmental history and identifies potential contamination risks. If the Phase I identifies recognized environmental conditions, the lender will typically require a Phase II assessment with soil and groundwater sampling. Phase I assessments cost $2,500 to $5,000, and Phase II assessments range from $10,000 to $50,000.
What clear heights do Aurora industrial lenders prefer?
Modern logistics lenders prefer clear heights of 32 to 36 feet, which accommodate contemporary racking systems and allow for efficient vertical storage. Buildings with 28 to 32 foot clear heights are financeable but may receive slightly less aggressive terms. Older buildings with clear heights below 24 feet face more conservative underwriting, as these specifications limit the tenant pool and potentially reduce long-term rental rates. Aurora's newest developments in Aero 70 and HighPoint feature 32 to 36 foot clear heights.
Can I finance a build-to-suit industrial project in Aurora?
Yes. Build-to-suit construction financing is actively available for Aurora industrial projects, particularly along the I-70 corridor. Lenders typically require a signed lease or purchase agreement with the end-user before funding, though some will finance speculative development in strong locations with a track record developer. Construction loans structure at 60% to 70% of total cost with 18 to 36 month terms. Projects with pre-signed leases from creditworthy tenants receive the most competitive terms.
How long does it take to close an Aurora industrial loan?
Closing timelines depend on the loan type. Bridge loans can close in 10 to 21 business days. Conventional bank loans require 45 to 75 days. CMBS loans take 60 to 90 days. SBA loans require 60 to 120 days due to the government guarantee process. Construction loans typically close in 60 to 120 days depending on permit status and project complexity. Environmental assessments and appraisals are the most common sources of delay.
What is the typical cap rate for an Aurora industrial property?
Aurora industrial cap rates range from approximately 5.0% to 5.8% for Class A logistics facilities with strong tenants and long-term NNN leases, 5.8% to 6.5% for Class B warehouse properties, and 6.5% to 8.0% for older Class C buildings requiring renovation. Flex and R&D space trades at 6.0% to 7.0%. Cap rates are influenced by tenant credit quality, remaining lease term, building specifications, and location within the I-70 corridor.
Positioning Your Aurora Industrial Investment for Success
Aurora's I-70 industrial corridor represents one of the strongest logistics and distribution markets in the Mountain West, supported by DIA proximity, major highway infrastructure, a growing metro population, and an active development pipeline delivering modern facilities that attract national and international tenants.
Whether you are acquiring a stabilized single-tenant NNN logistics building, developing a new speculative warehouse, repositioning an older multi-tenant facility, or purchasing an owner-occupied industrial property through the SBA program, securing the right financing structure is essential to maximizing your investment returns.
Contact Clear House Lending today to discuss your Aurora industrial property and get matched with the right lender from our network of over 6,000 commercial lending sources.