Skyline Report 1st Quarter 2008
News Release
2008 Colliers Real Estate Review In last year’s US Real Estate Review we listed a number of “crises” that might derail a near perfect period for commercial real estate. Being somewhat prescient, one such item was a debt crisis which of course is exactly what transpired beginning in August and continuing into 2008. The subprime lending debacle has been well chronicled and is a story that still is without an end. For readers of this report, the concern now is how will events transpiring in the residential world impact our universe as leases come up for renewal, development projects get a second look, mortgages are refinanced and investment decisions are made. The outlook has never been so murky but the key to navigating safely through such dangerous waters is good information, good advice and a little perspective. That is the intent of this report.
Denver Market Report - 20072007 was a strong yet tumultuous year for the Denver Metropolitan Service Area (DMSA) office market. The DMSA reported an impressive 2.3 million square feet of net absorption in 2007; however, lackluster absorption in the Class B office buildings mitigated an otherwise strong year. 2007 saw the collapse of the residential real estate, home building and lending sectors of the local and national economy. These office users typically occupy Class B properties. Although Class B properties account for over 54% of the square footage in the DMSA, there was only 584,866 square feet of net absorption in Class B office buildings in 2007 as compared with over 1.685 million square feet of net absorption in Class A properties in the DMSA.
Denver Knowledge Report - MidyearThe Denver Industrial market ended the second quarter 2007 with a vacancy rate of 8.1%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 1,014,444 square feet in the second quarter. Vacant sublease space decreased in the quarter, ending the quarter at 1,203,947 square feet. Rental rates ended the second quarter at $6.00, a decrease over the previous quarter. A total of 9 buildings delivered to the market in the quarter totaling 693,200 square feet, with 2,040,681 square feet still under construction at the end of the quarter.
Denver Skyline ReportIn an effort to provide our present and future clients with a better understanding of the Denver Southeast Suburban office market, we are pleased to present the Southeast Suburban Skyline Review, which includes a floor by floor analysis of availability displaying a cross-section of Class A office properties within this dynamic Denver submarket.
Denver Investment ReportThe Denver Industrial market ended the first quarter 2007 with a vacancy rate of 8.8%. The Denver Office market ended the first quarter 2007 with a vacancy rate of 13.5%. The vacancy rates were down over the previous quarter, with positive net absorption.
Southeast Investment ReportThe Denver Industrial market ended the first quarter 2007 with a vacancy rate of 8.3%. The Denver Office market ended the first quarter 2007 with a vacancy rate of 13.4%. The vacancy rates were down over the previous quarter, with positive net absorption.
2005 Denver Market ReviewThe December 2005 OSPB forecast for the Colorado economy has not significantly changed compared with the September 2005 forecast.
2005 Central Market Industrial Year in ReviewThe overall Denver Industrial market ended the year 2005 with a vacancy rate of 9.4%. This rate is down from the previous year along with asking rates which ended the year at $5.87/SF. Net absorption was positive for the year which consisted of over 3,422,209 SF. First quarter 2005 experienced negative absorption of (75,591) SF, however ended the year with positive absorption of 1,068,481 SF.
COSTAR REPORTS
If you are interested in obtaining a recent Costar Market Report, please contact:
Industrial Market Report: Julie Duran 303.283.4567jduran@colliersb-k.com
Office Market Report: Lisa Pettyjohn 303.283.4589lpettyjohn@colliersb-k.com
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