The result is higher vacancy rates and falling rents significantly below the national average. Also, tenants are playing musical buildings, rather than showing positive absorption.
"Few new businesses are relocating to the Denver area and current companies are not expanding, so most moves are to spaces of the same size, leaving inventory unchanged," the Meyers Group notes. "Furthermore, cost-conscious tenants are fitting more people into current space and running multiple shifts rather than expanding office size."
.In addition, high home prices and low affordability makes Denver less attractive for companies looking to relocate.
"In this sense, Denver lacks a competitive edge compared to other areas that offer more incentives than lifestyle and climate," the report says. "Denver may focus on such incentives as an improve school system, transportation, and affordable housing to attract and keep businesses."
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