"The metro Denver office market is recovering and will likely experience significant improvement in 2006," states the report.
Positive signs in the first half of the year in the office market include: Net absorption of 446,000 sf; subleased space down by 495,000 sf; rents relatively stable; and the overall vacancy rate dropping to 15.7% from 16.6% at the end of 2004. However, Denver's office vacancy rate is still higher than the national average of 12.6% and is the third highest in the major cities it surveyed. Only Chicago, at 16%, and Dallas/Fort Worth, at 19.8%, have higher office vacancy rates, according to the report.
In light of the improving market, the report suggests to tenants that, "Now is the time to make a move, taking advantage of a 'tenant' market before the pendulum begins to swing back toward the landlords in 2006."
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