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Availability continues to tighten in Denver despite new deliveries; asking rents climb
Declining consistently since mid-year 2016, overall availability in the Denver market contracted again in the third quarter. Availability ended Q3 at 16.6% marking a 170-basis-point decrease year over year. The decline was even sharper in the Central Business District (CBD) with availability declining 350 basis points over the same period to 14.7%. Still, market-wide asking rental rates remained relatively unchanged, increasing just 0.5% year over year to $28.51 per square foot (psf) for all classes. However, asking rents in the CBD have surged, increasing 1.5% to $36.25 psf as new buildings deliver high-quality options and tenant flight to quality continues.