Commercial Real Estate Report - Denver, CO [Office]

Property Type

Reviews of the Denver office market are favorable but not spectacular. At 18.1%, the year-end 2012 vacancy rate was down fully 70 basis points since the third quarter and was down 150 points for the year. Modest to moderate rent growth in 2011 and 2012 was insufficient to redeem all the losses suffered in 2009 and 2010. Asking and effective averages were up 1.9% and 2.2% for the year. Respective increases during the fourth quarter alone were 0.7% and 0.8%. (4/8/13)

Boundaries

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Latest Quarterly Reports (Q1 2013)

Denver, CO - Entire Metro
Submarkets
Northwest -60 bps  
Northeast -60 bps  
CBD -20 bps  
Southeast Suburban 20 bps  
West Central 20 bps  
Midtown 30 bps  
Southeast 60 bps  
Southwest 70 bps  
 
 

Recent Sales

Cap Rate Trend

Sales Trend

Q1
2013
Q4
2012
Q3
2012
Q2
2012
Mean 8.9% 5.9% 5.8% 8.0%
Median 7.8% 4.9% 5.7% 8.4%
12 Month Rolling 7.4% 7.0% 7.2% 7.4%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
Southeast Suburban 05820 A $21
Southeast Suburban 06270 BC $15
Southeast 12270 BC $9
Southeast Suburban 04620 A $22
Southeast Suburban 51310 A $24
Southeast 10360 BC $19
Southeast Suburban 04890 BC $20
Southeast Suburban 57660 BC $18
Southeast Suburban 03150 BC $10
Southeast Suburban 07130 A $31

Change From Previous Quarter

Market Rent Vac Inv
Denver 0.1% -10 bps 0.0%
West Region 0.0% -10 bps -0.1%
United States 0.0% 0 bps -0.0%

Metro vs. Region 0.1% 0 bps 0.0%
Metro vs. US 0.1% -10 bps 0.0%

Latest New Construction Updates

Location Size
West Central 0 - 160,000
West Central 0 - 160,000
West Central 0 - 160,000
West Central 0 - 160,000
Southeast Suburban 0 - 160,000
Southeast Suburban 160,000 - 310,000
West Central 0 - 160,000
Southwest 0 - 160,000
Southwest 0 - 160,000
West Central 0 - 160,000
View all Construction Projects

National Office Real Estate Trends

Vacancy Trends
Supply and Demand
Inventory Change
Inventory Change

Metropolitan Office Rankings (Q1 2013)

Based on 190 U.S. Markets
Value:
109. Salt Lake City, UT 17.5%
110. Orange County, CA 17.7%
111. Minneapolis, MN 17.8%
112. College Station-Bryan, TX 17.9%
113. Columbus, OH 18.0%
114. Denver, CO 18.0%
115. Worcester, MA 18.0%
116. Springfield, MO 18.1%
117. Fort Collins, CO 18.2%
118. Oakland-East Bay, CA 18.3%
119. San Antonio, TX 18.4%

Avg Annual Growth Rate (2013 - 2017)

Market Rent Vac Inv
Denver 0.4% 1,789 bps 0.3%
West Region 0.3% 1,778 bps 0.6%
United States 0.6% 1,704 bps 0.9%

Metro vs. Region 0.1% 11 bps -0.3%
Metro vs. US -0.2% 85 bps -0.6%