Savills Studley Releases Q3 2016 Findings for Denver

26 October 2016

Savills Studley, the leading commercial real estate firm specializing in tenant representation, has released its 2016 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 trends and investment and development trends specific to the Denver Metropolitan area.

Highlights from the 2016 Q3 Studley Denver Report include:

 

  • Office leasing volume has decelerated in Denver, as oil and gas firms continue to contract and mature technology companies have slowed expansion. Tenants have leased 8.6 msf in last four quarters compared to the long-term average of 9.1 msf; and leasing fell 25 percent quarter-to-quarter in Q3. 
  • Denver Metropolitan Class A availability increased for the fifth quarter in a row, jumping from 18.8 percent to 19.8 percent. Unlike previous quarters, Q3’s increase was driven by a spike in suburban Class A availability, while available downtown space was nearly the same as Q2. Relative to 2013 and 2014, suburban submarkets have received fewer large out-of-market corporate relocations of late. 
  • Overall average asking rent for the Denver Metropolitan area was essentially unchanged from Q2, however, Class A rates fell 3.8 percent to $29.36-psf in Q3. At $36.84, LoDo is the only Denver submarket with average asking rents above the US Index of $33.06.
  • Available sublet space has nearly tripled from levels seen as recently as mid-2013, with a diverse range of companies cutting occupancy, including oil and gas, tech and healthcare.

The 2016 Q3 Savills Studley Denver Office Market Report can be found on Savills Studley’s webpage, as well as a national report and reports for each of the 29 major U.S. markets.

 
 

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