The overall vacancy rate, which includes sublease space, was unchanged at 22.4%. Class A direct vacancy rate declined marginally to 18.7% from 18.8% from the previous quarter, while Class B vacancy climbed to 17% from 16.6%. Many tenants are continuing to take advantage of the slow leasing market by upgrading to Class A space, the company notes.
The Northwest market saw its direct vacancy rate decline 3.3 percentage points to 22.1% in the first quarter, although when sublease space is included, its vacancy rate is at 38.6%, the highest in the metro area.
Denver's Central Business District's direct vacancy rate climbed again to 12.4%, but at a slower pace than in the previous quarter. The market appears to be close to the bottom, and could begin to stabilize, the report notes.But the market isn't out of the woods yet, according to Trammell Crow office broker Richard Damm. "Unless the job market turns around dramatically in the second half of 2003, and there are no indications that it will, the region's office vacancy is expected to continue to bounce along the bottom for the remainder of the year," the report says.
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