Denver Office Market Absorption Slows, Says Savills Studley
DENVER — Savills Studley, the leading global commercial real estate services firm specializing in tenant representation, has released its 2018 Q3 Denver edition of the Savills Studley Office Market Report.
The quarterly report is an in-depth compilation of office leasing statistics and trends, major transactions, submarket comparisons, employment data, and investment and development activity.
“Some tech firms are expanding at a rapid pace, but continued commitment to space efficiency among law firms and many other sectors is restraining space absorption. However, VF Corporation and Slack’s arrival validate the positive market momentum,” says Executive Managing Director, Todd Roebken.
Highlights of the report include:
LEASING UP SLIGHTLY: Quarterly leasing volume positively reversed directions, rising from 1.9 million square feet (msf) to 2.0 msf, and on par with the market’s longterm average. Tenants have leased 8.8 msf in the four most recent quarters, on track with the long-term market average.
CLASS A AVAILABILITY DROPS: The market’s overall availability rate ticked down by 10 basis points to 18.6% this quarter, the second consecutive quarter with a slight decrease. The region’s Class A rate posted a sharper 40 basis point decrease to 19.3 percent.
RENTAL RATE UP SLIGHTLY: Overall asking rent posted a 2.4 percent increase, rising from $27.54 to $28.20. The Class A asking rent rose by 2.3 percent to $31.90.
SALES UP: Office property sales during the first seven months of the year totaled $1.5 billion, a 31 percent increase compared to the first seven months of 2017.