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Denver Office Market

Average Asking Rent (Price/SF) $26.07
Vacancy Rate (%) 15.1%
Net Absorption (SF) 338,494

Denver's office market is well on track to achieve absorption in excess of 1.0 million square feet in 2017, as it continues in its eighth straight year of expansion. Net absorption in the third quarter totaled 338,494 square, bringing year-to-date absorption to 692,228 square feet. Vacancy was 15.1%, down slightly from the 15.2% rate posted in the prior quarter and up from 14.0% one year ago. Vacancy will continue to fall over the next several quarters, as tenants, many of them new to the Denver market, occupy space leased in both new and existing buildings. The Denver office market has enjoyed an impressive expansion run lasting 31 straight quarters, resulting in a total of 9.1 million square feet of net absorption and a 493-basis-point plunge in vacancy.

Denver Industrial Market

Average Asking Rent (Price/SF) $8.43
Vacancy Rate (%) 5.0%
Net Absorption (SF) 1,739,005

The third quarter of 2017 marked the Denver industrial market's twenty-third consecutive quarter of positive growth with net absorption of 1.7 million square feet, bringing year-to-date net absorption to 2.4 million square feet. Although this represented an increase from the third-quarter net absorption of the previous year, the market returned to the previous trend of relying on new deliveries for absorption. Tenants occupying pre-leased space that delivered in third-quarter 2017 accounted for 1.4 million square feet, slightly less than 80.0% of quarterly absorption. The delivery of three build-to-suits along with moderate growth in second-generation buildings helped the overall vacancy rate drop to 5.0% from 5.2% in the prior quarter. Even though vacancy dropped slightly, new deliveries that are not fully pre-leased still counter-balanced the limited amount of, and continued demand for, high-quality space. These two opposing forces are keeping rental rates mostly stable at their current historic high.

Denver Office Market Report
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Denver Industrial Market Report
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