1
 
Guidance Corporate Realty Advisors

COMMERCIAL TENANT AND BUYER REPRESENTATION

Gain the edge for your next lease or purchase transaction
Contact us to discuss your project - 303.442.5400

Denver Commercial Real Estate Market Update

                                            OFFICE MARKET - 1st Quarter 2014

The Denver Office market ended the first quarter 2014 with a vacancy rate of 11.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 611,439 square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 858,044 square feet. Rental rates ended the first quarter at $22.17, an increase over the previous quarter. A total of five buildings delivered to the market in the quarter totaling 378,790 square feet, with 2,072,949 square feet still under construction at the end of the quarter.   

Office Absorption
Net absorption for the overall Denver office market was positive 611,439 square feet in the first quarter 2014. That compares to positive 541,242 square feet in the fourth quarter 2013, positive 685,267 square feet in the third quarter 2013, and positive 614,302 square feet in the second quarter 2013.  

Office Vacancy
The office vacancy rate in the Denver market area decreased to 11.1% at the end of the first quarter 2014. The vacancy rate was 11.3% at the end of the fourth quarter 2013, 11.5% at the end of the third quarter 2013, and 11.8% at the end of the second quarter 2013. .  

Office Sublease Vacancy
The amount of vacant sublease space in the Denver market increased to 858,044 square feet by the end of the first quarter 2014, from 814,097 square feet at the end of the fourth quarter 2013. There was 919,080 square feet vacant at the end of the third quarter 2013 and 881,249 square feet at the end of the second quarter 2013.   

Office Rental Rates
The 
average quoted asking rental rate for available office space, all classes, was $22.17 per square foot per year at the end  of the first quarter 2014 in the Denver market area. This represented a 0.6% increase in quoted rental rates from the end of the fourth quarter 2013, when rents were reported at $22.04 per square foot.  

Total Office Vacancy and Leasing Rates* for key submarkets in the Metro Denver, Colorado area:

Submarket

Class

Vacancy

Avg. Lease
Rates/SF*

 Denver Central Business District A 14.2% $30.32
 Denver Central Business District B 15.3% .24
 Denver Tech Center (DTC) A 9.8% $24.86
 Denver Tech Center (DTC) B 16.8% $20.36
 West A 9.3% $26.26
 West B 17.4% $18.88
 Northwest A 16.2% $23.90
 Northwest B 10.2% $17.99
 Boulder A 1.7% $39.72
 Boulder B 5.7% 21.93

  *   Quoted Lease Rates/square foot are full service gross, including all operating costs.
  

                                           INDUSTRIAL MARKET - 1st Quarter 2014

The Denver Industrial market ended the first quarter 2014 with a vacancy rate of 5.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,359,077 square feet in the first quarter. Vacant sublease space increased in the quarter, ending the quarter at 1,125,765 square feet. Rental rates ended the first quarter at $6.79, an increase over the previous quarter. A total of seven buildings delivered to the market in the quarter totaling 183,599 square feet, with 2,826,450 square feet still under construction at the end of the quarter. 
 
Industrial Absorption
Net 
absorption for the overall Denver Industrial market was positive 1,359,077 square feet in the first quarter 2014. That compares to positive 1,749,747 square feet in the fourth quarter 2013, positive 1,960,021 square feet in the third quarter 2013, and positive 636,552 square feet in the second quarter 2013. 
 
Industrial Vacancy
The 
Industrial vacancy rate in the Denver market area decreased to 5.4% at the end of the first quarter 2014. The vacancy rate was 5.8% at the end of the fourth quarter 2013, 6.6% at the end of the third quarter 2013, and 7.7% at the end of the second quarter 2013.   
 
Sublease Vacancy
The amount of vacant sublease space in the Denver market increased to 1,125,765 square feet by the end of the first quarter 2014, from 1,124,729 square feet at the end of the fourth quarter 2013. There was 1,130,046 square feet vacant at the end of the third quarter 2013 and 1,180,286 square feet at the end of the second quarter 2013. 
 
Rental Rates
The
 average quoted asking rental rate for available Industrial space was $6.79 per square foot per year at the end of the first quarter 2014 in the Denver market area. This represented a 1.5% increase in quoted rental rates from the end of the fourth quarter 2013, when rents were reported at $6.69 per square foot.     
 
Source: The Costar Office and Industrial Market Reports – 1st Quarter 2014

 To subscribe to our RSS feed, please copy & paste this URL into your Feed Reader:  http://www.guidancebrokers.com/rss.xml

Other pages in:

Guidance Corporate Realty Advisors provides Corporate Tenant / Buyer Representation services to corporate real estate users in the Denver metropolitan area including Boulder, Colorado.  Guidance also provides these services in all major U. S. markets, as well as markets in Canada, Asia, South and Central America, and Europe.  To contact: (303) 442-5400 ext 2; Email for Information; 521 Valley View Drive, Boulder, CO 80304; 5231 Monroe Street, Suite 200, Denver, CO 80216.

BOULDER OFFICE
521 Valley View Drive
Boulder, CO 80304
DENVER OFFICE
5231 Monroe Street
Denver, CO 80216
PH: 303.442.5400
FX: 303.545.6581
Email Us