Metro Denver’s commercial real estate market seems to be following the strengthening residential real estate market — though not at the same pace — with declining vacancy rates and increasing rents across all three submarkets — office, industrial and retail— according to an April Market Watch report issued by Transwestern on Tuesday.
The report shows metro Denver’s office market at a direct vacancy rate of 12.12 percent, asking direct rent rates at $21.91 (according to CoStar Group Inc.) per square foot per month and 900,942 square feet of positive absorption (the amount of space leased, versus vacated) through April. The office lease rates were up 9 cents month over month.
The retail submarket stood at a 6.05 percent direct vacancy rate, average asking rent of $14.70 per square foot and 594,555 square feet of positive absorption. Those lease rates were flat month over month.
The industrial submarkets stood at 5.29 percent vacancy, $4.88 per square foot per month rent and 874,065 square feet of space leased versus vacated year to date, according to the report. The lease rate average was up 6 cents from March’s average.
Denver’s central business district led the office stats with an 11.25 percent vacancy rate and average rents at $28.51 per square foot – up a whopping 51 cents in just one month.
The strongest retail submarket was Colorado Boulevard/Cherry Creek, with a vacancy rate of just 2.38 percent and average rents of $20.67 per square foot per month, up 3 cents. The downtown retail submarket took the biggest drop in rents, with a $2.21 per square foot drop since March to $19.80. The downtown retail submarket also had a negative 66,000 square feet in absorption.