Denver Office Market Report

Please be sure to scroll down to  the chart below this general information to learn what the vacancy rate and the average cost is in the location and the class of building of interest to you.  This information should be helpful as you address lease expiration or changing needs.  Carol High Commercial Real Estate is here to help you and your company in your real estate decisions.

 The Denver office market ended the second quarter 2010 with a vacancy rate of 14.2%.

Absorption

Net absorption for the overall Denver office market was positive 604,095 square feet in the second quarter 2010. That compares to positive 976,949 square feet in the first quarter.
Net absorption for Denver’s central business district was positive 412,355 square feet.
Net absorption for the suburban markets was positive 191,740 square feet.

Vacancy

The overall vacancy rate in Denver; central business district at the end of the second quarter increased to 14.4%. It was 14.3% and the end of the first quarter, 15.0% t the end of the fourth quarter 2009, and 15.5% at the end of the third quarter 2009.
The vacancy rate in the suburban markets decreased to 14.1% in the second quarter 2010.

Rental Rates

The average quoted asking rental rate for available office space, all classes, was $19.94 per square foot at the end of the second quarter in the Denver market area. This represented a 0.2% decrease in rental rates from the end of the first quarter.

The average quoted asking rental rate in Denver central business district was $25.29 per square foot at the end of the second quarter, and $18.75 in the suburban markets.

Denver Industrial Market

Vacancy

The Denver industrial market ended the second quarter 2010 with a vacancy rate of 8.2%. The vacancy rate was 8.6% at the end of the first quarter.
Flex projects reported a vacancy rate of 15.3% at the end of the quarter while warehouse projects reported a vacancy rate of 6.8%.

Absorption

Net absorption for the overall Denver industrial market was a positive 1,750,105 square feet in the second quarter. That compares to a positive 345,378 square feet in the first quarter.
The Flex building market recorded net absorption of positive 45,635 square feet. In Warehouse, net absorption of positive 1,704,470 square feet was recorded.

Rental Rates

The average rental rate for available Industrial space was $5.99 per square foot at the end of the quarter. That’s a 0.2% increase over the first quarter.
The average rate for Flex space was $9.26 per square foot while it was $4.94 for Warehouse space.

Source: Costar

For more information, please contact Carol High at (303) 628-0888 or carol@chighre.com.