Denver Office Market
Denver's office market entered its eighth straight year of expansion, as a net 190,196 square feet was absorbed in the first quarter of 2017. Vacancy was 14.5%, up slightly from the 14.2% rate posted in both the prior quarter and one year ago. This vacancy increase was due to the delivery of three projects with strong pre-leasing but with occupancy staggered over the next few quarters. The Denver office market has enjoyed an impressive expansion run lasting 29 straight quarters, resulting in a total of 8.5 million square feet of net absorption and a 550-basis point plunge in vacancy.
Denver Industrial Market
After transitioning from the frenetic growth of 2013 and 2014 to the stable growth of 2015 and 2016, the Denver industrial market found itself in the calm before the storm in the first quarter of 2017, a time of modest growth prior to another period of robust growth that is taking root and will bloom later in the year. The market realized its fifth consecutive year of positive net absorption with 256,942 square feet absorbed in first-quarter 2017. Vacancy rose to 4.4%, up slightly from both the previous quarter and year-over-year. This increase was largely due to over 500,000 square feet of new construction delivering vacant, although 100,000 square feet was pre-leased and will be occupied in the following quarter.