Denver Office Market
Office vacancy remains unchanged, but rental rates continue to climb despite economic concerns
Unlike the residential housing market, the Denver office market continues to show signs of strength. At the end of the first quarter, Denver's office vacancy was 12.9%, identical to the vacancy rate at the end of 2007. Rental rates for Denver office buildings increased to $21.39 at the end of the first quarter. This represented an increase of 1.8% from the end of 2007, when rents were reported at $21.01 per sq. ft. A total of 12 new buildings delivered to the Denver office market last quarter totaling 145,809 square feet. All of these factors indicate that Denver's office market remains healthy and sound. Obviously, if concerns continue to be raised about the national economy, there might be a slow down in leasing activity. However, I do not anticipate a slow down until later in the year, if then.