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Denver Office Market

Average Asking Rent (Price/SF) $29.43
Vacancy Rate (%) 15.0%
Net Absorption (SF) 508,852

Following a banner year in 2018, Denver's office market continued its trend of expansion, posting 508,852 square feet of net absorption for the first quarter of 2019. Vacancy fell to 15.0%, down from 15.2% in the prior quarter and down 90 basis points from 15.9% one year ago. Vacancy will likely 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 37 consecutive quarters and resulting in 12.1 million square feet of net absorption, 9.8 million square feet of deliveries, a 463-basis-point plunge in vacancy and steadily appreciating rental rates.

Denver Industrial Market

Average Asking Rent (Price/SF) $8.77
Vacancy Rate (%) 5.0%
Net Absorption (SF) 2,215,172

2018 proved to be a record-breaking year for the Denver industrial market. Annual absorption reached 4.8 million square feet, the highest since pre-recession 2006. The Northeast became only the second submarket to post more than 1 million square feet of annual absorption in the past 15 years. Although it and the East submarket were the standouts of the year, all seven submarkets ended 2018 with positive annual absorption for the first time in five years. Five of the seven submarkets had more than half a million square feet of annual absorption. The absorption helped balance the 5.1 million square feet that delivered over the course of the year, dropping vacancy to 5.0% at year end, down from 5.5% in the previous quarter and 5.1% at the end of 2017. The amount of new product nearly broke the record set just last year, barely missing it due to several buildings being delayed until 2019. The largest building to deliver in 2018 was the Amazon distribution center in the Northeast submarket in the third quarter. The three-story, 855,000-square-foot warehouse is the third major build-to-suit for Amazon in the Denver market in as many years, preceded by a 1 million-square-foot fulfillment center delivered in 2017 and a 452,000-square-foot sorting facility in 2016.

Denver Office Market Report
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Denver Industrial Market Report
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