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LEASING DECLINES
Following a strong quarter of activity, with 2.8 million square feet (msf) leased – quarterly activity decreased to 2.2 msf. Tenants have leased 9.4 msf in the four most recent quarters, on track with the long-term market average. AVAILABILITY RATES SLIDE
AVAILABILITY RATES SLIDE LOWER
The market’s overall availability rate declined from 19.4% to 18.8% this quarter. The Class A availability rate fell by 40 basis points to 20.5%.
RENTAL RATE INCREASES
Overall asking rent increased by 3% from $26.66 to $27.46 this quarter. The rate increased by 5.1% year-on-year. The Class A average rent registered an increase of 2.3% to $30.39 this quarter.
SALES UP
Office property sales during the last six months (through February 2018) totaled $1.3 billion, a 70% increase compared to the previous six–month total of $780 million.
“Although the Denver region has not seen a recent corporate relocation of the scale of Charles Schwab, the number of smaller and mid-sized firms setting up operations and thriving in Denver has spiked. A dearth of labor and soaring costs in West Coast tech markets continues to push firms to Denver."
Rick Schuham, Vice Chairman