2018 Q4 Denver Office Market Report

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At A Glance

Market Overview

Continued interest in Denver’s office market was apparent during 2018, as total absorption for the year reached more than 3.1 million square feet – by far the highest annual total in the last 10 years. Overall vacancy has been relatively similar year-over-year, after a 100-basis-point increase mid-year, and asking rental rates have increased more than 4.5 percent since the fourth quarter of 2017. Office investment activity recorded more than $1 billion in sales during the fourth quarter and approximately $3.0 billion annually during 2018. Job growth and net in-migration have moderated over the past year compared to three years prior; however, both categories recorded strong performances during 2018. Office fundamentals should continue to perform well during 2019, as the metro area remains a highly sought-after city for companies looking to relocate or expand.

MarketIndicators 

 Highlighted Trends

  • As of November 2018, the Bureau of Labor Statistics indicated the estimated unemployment rate for the Metro Denver area at 3.3 percent.
  • Metro Denver total employment increased by approximately 30,000 jobs between November 2017 and November 2018.
  • Fourth quarter investment activity totaled more than $1 billion throughout Metro Denver.

 

 

 

 

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2018 Q4 Denver Office Market Report

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