Denver’s Office Market has a 10.5% vacancy – End of 2017

During 2016 we began to find some slowing in the frenzy of leasing office space in the Denver Market. The peak was reached 2016 and then in 2017 some major energy tenants reacted to falling oil prices, and closed their offices. Most of these were in the Central Business District. Encana Oil & Gas, however, was the largest lease signed, a renewal of 334 thousand square feet at Republic Plaza. Denver’s culture of diverse businesses has protected it from the huge vacancies that occurred in decades past when the energy companies were the major players in the downtown office market.

WeWork, an office co sharing company and several other office sharing companies have taken space in locations to serve the growing number of startup companies and innovative workers. Health Care organization DeVita, is planning a new 343 thousand square foot expansion. ProLogis moved to The Dairy Block Building from the suburbs, Ibotta, OnDech Capital, Chipotle, CoBiz Financial, Unicom Capitol are all major players who have taken space in the office market in Downtown Denver. So the central business district has a vacancy of 13.9% and average quoted rates were $32.26/square foot.

The Suburban vacancy rate was 9.8% and the average asking rental rate was 26.32. This includes all classes and all suburban markets. See the chart below for areas of interest as this is a broad area.

There was more than 5 million square feet under construction at the end of 2017 and companies continue to come to and expand in Denver. Much of the new space is preleased.

Currently the vacancy overall in Metro Denver is 10.5%. This is a healthy market, giving both Landlords and Tenants an opportunity to negotiate for what they need or look elsewhere. Each area and case is different and requires time and expertise to make find and negotiate a new lease. Carol High Commercial Real Estate has the expertise, data and contacts to help find and negotiate the best deal for your company. Call us at 303-628-0888

 

Statistics are provided by CoStar Realty Information

  Class A Space Class B Space Class C Space
  Rental rate Vacancy Rental rate Vacancy Rental rate Vacancy
Arapahoe Road $XX.XX 5.40% $21.85 3.40% $16.40 7.70%
Aurora $24.30 9.10% $17.35 9.40% $12.75 4.20%
Boulder $40.50 8.20% $26.30 8.60% $24.78 4.00%
Boulder County $24.83 14.60% $23.70 13.10% $20.44 4.90%
Broomfield county $27.00 7.80% $25.22 8.40% $20.63 3.50%
Capitol Hill $29.35 6.80% $21.91 3.70% $26.32 5.70%
Central Business Dist $33.40 16.50% $26.85 14.00% $20.42 1.90%
Centennial $XX.XX 23.30% $20.02 7.60% $0.00 0.00%
Cherry Creek $41.65 14.40% $31.78 9.80% $31.69 5.60%
Colo Blvd/I-25 $31.83 26.40% $22.32 10.40% $18.20 10.80%
Denver Tech Center $27.62 16.50% $23.79 16.20% $17.64 2.80%
East Hampden $20.18 26.40% $16.18 8.40% $16.32 4.70%
E I-70 /Montbello $26.50 20.00% $20.82 4.70% $13.25 2.10%
Glendale $23.63 12.30% $22.04 6.70% $14.86 6.20%
Greenwood Village $26.80 9.10% $22.46 16.20% $19.38 18.70%
Highlands Ranch $23.19 9.70% $26.22 9.60% 0 9.00%
Inverness $26.61 19.40% $22.14 15.70% 0 0
LoDo $40.48 8.20% $33.93 10.60% $31.14 3.50%
Lone Tree $28.38 4.70% $30.18 6.50% 0 0
Meridian $24.91 14.20% $23.94 7.40% 0 0
North Denver $20.50 3.00% $22.85 9.40% $13.93 2.00%
Northeast Denver $XX.XX 0.00% $21.18 18.90% $16.40 4.00%
Northwest Denver $25.57 17.30% $19.74 7.20% $22.42 4.60%
Panorama/Highland Pk $25.42 9.70% $22.27 5.70% $16.68 3.30%
Platte River $39.70 32.30% $37.28 13.50% $25.18 7.30%
South Midtown $XX.XX 0 $26.13 4.80% $27.76 0.50%
Southwest Denver $26.15 7.60% $18.72 10.80% $16.49 3.30%
West Denver $27.15 10.30% $21.53 12.30% $16.13 4.20%

 

Denver’s Industrial Market – End of 2017

Vacancy remains at 4.4%

The Denver Industrial market continued to boom with an increase of absorption each quarter ending with a 1,917,000 square feet of absorption in just the 4th quarter. Amazon’s huge lease of 2.4million square feet at I-25 and 144th and the lease of 354,000 sf by UPS in 2017 contributed to the year’s high absorption rate. Construction and demand are well balanced with the vacancy of 4.4 remaining constant at the end of the year.

For specific information on an area or project of interest please contact Carol High Commercial Real Estate. carol@chighre.com or 303-628-0888 We would be happy to give you information and help you find and negotiate your next business home. Our data is extensive and our negotiating skills are sharp.

Submarket Warehouse Averages Flex Space Averages
Vacancy Asking rate Vacancy Asking rate
Aurora Industrial 4.20% $12.40 10.60% $7.01
Boulder Ind 7 $11.51 6.3 $14.56
Broomfield Ind 2.1 $9.22 4.1 $11.39
Central Ind 4.1 $7.97 1.3 $17.75
East I/70, Montbello 4.8 $6.25 2.9 $11.53
Glendale Ind. 1.7 $10.63 2.8 $10.29
Longmont Ind 2.3 $7.60 5 $12.06
North Central Ind 5.3 $8.16 0.7 $16.20
North Denver Ind 2.9 $9.55 19.4 $12.15
Northeast Denver Ind 2.9 $9.10 9.2 $13.50
Northwest Denver Ind 4.8 $7.99 4.6 $11.70
Parker/Castle Rock Ind 10.7 $14.56 10 $13.28
South Central Ind 2.3 $8.73 6.5 $10.53
Southeast Denver Ind 5.4 $9.21 7 $12.82
Southwest Denver Ind 0.9 $9.28 6.2 $10.51
Weld County Ind 1.2 $10.64 7.7 $9.86
West Denver Ind 0.9 $8.33 2.9 $12.18
TOTAL AVERAGES 3.8 $8.14 7.2 $11.70

Statistics are provided by CoStar

For current details on individual markets and buildings, contact

Carol High Commercial Real Estate, Inc. 303-628-0888 (o) or 303-917-0688 (m)

email carol@chighre.com