Denver’s Office Market – End of 2016

The overall vacancy in the Denver Office market was 9.8% at the end of 2016. There was a positive absorption of 215 thousand square feet of space. Nine buildings were delivered bringing 421 thousand square feet to the market so the vacancy actually jumped 0.2%. There were 1.587 million square feet still under construction. It typically takes two or three years to complete an office building so that number will be delivered over many months.

Class C office vacancy was 4.9%. (They aren’t building any more of that.) Class B space had a vacancy of 9.9% and Class A space has a vacancy of 10.6. There is a lot of Class A under construction.

The average quoted rental rate in Denver’s central business district was $31.53. The average quoted rate in the suburbs $23.55.

The charts below will give you an idea of costs and vacancy in various submarkets. To get specifics on buildings and spaces available so that real comparables can be considered, please talk to your local expert, Carol High Commercial Real Estate. Helping businesses consider their options is our job.

Statistics are provided by CoStar Realty Information

                                      Class A Space      Class B space      Class C Space

Arapahoe Road $28.01 3.1% $20.76 4.3% $18.41 7.6%
Aurora $17.80 4.5% $18.03 8.8% $12.42 5.9%
Boulder $37.17 16.7% $26.44 7.4% $25.49 3.1%
Boulder County $24.09 7.6% $18.97 11.3% $16.95 2.8%
Broomfield county $28.01 11.6% $25.06 7.7% $15.32 2.6%
Capitol Hill $31.76 0.7% $20.14 3.0% $21.82 3.8%
Central Business Dist $32.45 15.5% $26.44 11.0% $22.89 4.5%
Centennial $0.00 0.0% $17.28 5.8% $0.0 0.0%
Cherry Creek $36.49 16.3% $29.42 8.5% $23.44 5.0%
Colo Blvd/I-25 $31.53 10.4% $20.47 11.4% $16.67 4.0%
Denver Tech Center $27.17 14.1% $22.65 23.3 % $19.09 2.3%
East Hampden $20.37 20.6% $14.84 10.6% $13.79 3.6%
E I-70 /Montbello $26.00 8.0% $18.06 5.7% $15.81 0.8%
Glendale $23.10 13.0% $23.51 9.0% $14.60 7.9%
Greenwood Village $28.17 7.1% $22.26 18.7% $ 20.20 1.2%
Highlands Ranch $21.80 6.3% $26.56 8.3% 0 0
Inverness $24.12 20.7% $21.54 15.9% 0 0
LoDo $37.66 6.8% $33.20 10.3% $32.09 4.1%
Lone Tree $27.05 7.3% $30.44 11.9% 0 0
Meridian $25.49 7.0% $22.21 5.8% 0 0
North Denver $21.00 3.1% $22.10 8.6% $14.66 1.6%
Northeast Denver 0.00% 0% $19.21 6.0% $15.50 3.2%
Northwest Denver $25.06 8.7% $21.31 9.2% $18.27 5.4%
Panorama/Highland Park $26.47 2.5% $21.37 3.2% $16.20 3.7%
Platte River $42.88 18.0% $33.23 8.1% $26.68 3.6%
South Midtown 0 0 $26.11 7.0% $26.79 4.0%
Southwest Denver $26.35 13.7% $17.46 14.3% $15.79 4.9%
West Denver $25.16 8.2% $20.76 13.0% $16.03 5.3%

Denver’s Industrial Market –End of 2016

Denver’s Industrial Market has a vacancy rate of 4.8%. That takes into account a vacancy of 3.9% in the warehouse market and 9.7% in the Flex market. Net Absorption was 505,367 square feet in the 4th quarter. There were 1.6 million square feet of space constructed in the 4th quarter of 2016 and there was 3.3 million additional square feet under construction at the end of the year. Much of it is preleased. Large distribution companies contributed to the healthy absorption of warehouse space in 2016: Amazon.com, KeHE Distributors and FedEX.

Sales of industrial space had reached 130 transactions in the first nine month of 2016. They averaged $86.63 per square foot, significantly higher than the same time period in 2015. Cap rates averaged 7.25%.

All of this goes to say that users, both large and small, must plan well in advance if they are considering finding and leasing or buying space for a growing business.

A good and persistent broker plus a flexible attitude will help as you address your upcoming needs.

See the statistics below and call Carol High Commercial Real Estate when it’s time to look for space.

Market Statistics Flex Vacancy Asking Rate Warehouse Vacancy Asking Rate
Aurora Ind 15.2% $8.27 1.8% $11.90
Boulder Ind 4.3% $14.98 3.5% $11.13
Broomfield Ind 5.9% $12.66 2.7% $6.98
Central Ind 4.2% $11.78 1.8% $6.82
East I-70/Montbello 4.0% $9.31 5.0% $5.79
Fort Collins/Loveland Ind 15.5% $9.57 4.6% $7.93
Glendale Ind 1.5% $8.50 0.7% $6.21
Longmont Ind 24.5% $9.57 3.1% $7.84
North Central Ind 0.3% $15.78 2.2% $8.44
North Denver Ind 17.6% $11.62 4.1% $7.28
Northeast Denver Ind 2.4% $11.69 10.1% $7.76
Northwest Denver Ind 5.2% $10.32 3.6% $6.44
Parker/Castle Rock Ind 8.2% $13.79 1.1% $14.50
South Central Ind 3.0% $11.10 1.9% $7.93
Southeast Denver Ind 9.8% $11.16 4.5% $8.85
Southwest Denver Ind 6.3% $9.42 0.4% $9.61
Weld County Ind 18.1% $7.25 1.5% $8.67
West Denver Ind 3.8% $10.72 2.0% $7.63

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