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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Recent Sales New Construction Highlight Submarkets

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% 8.5%
12 Month Rolling 7.4% 7.0% 7.2% 7.4%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
Southeast Suburban 70130 BC $13
Southeast Suburban 39520 BC $14
Southeast Suburban 06540 BC $13
Southeast Suburban 36420 BC $19
Southeast Suburban 04620 A $22
Southeast Suburban 27830 A $22
Southeast Suburban 80080 BC $15
Southeast Suburban 07990 BC $18
Southeast Suburban 09220 A $18
Southeast Suburban 06511 BC $16

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
Northeast 200,000 - 400,000
Southeast Suburban 0 - 200,000
CBD 0 - 200,000
CBD 200,000 - 400,000
Northwest 0 - 200,000
Northeast 0 - 200,000
Northwest 200,000 - 400,000
Northwest 0 - 200,000
Northwest 0 - 200,000
N/A 0 - 200,000
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%