Office Market Suffers Through 1st Half

DENVER-The office market in the first half of the year continues to suffers across the board, led by a 53% vacancy rate in class-A buildings along the Northwest corridor, shows a mid-year report by Fuller and Co. “The weakness is primarily due to the anemic demand for office space,” the report notes.

“This has led to negative absorption, with increased vacancy rates in literally all submarkets,” the report adds.

Property owners are forced to make significant concession and only two speculative office buildings–one in southeast Denver and one in the Central Platte Valley–are under construction.

The “overwhelming” 5.7 million sf of subleased space boosts the overall vacancy rate by nearly 4%, the report notes.”In fact, today, 25 office buildings can deliver blocks of space of 100,000 sf or more,” Fuller and Co. says.