Grubb & Ellis Co.'s researchers say "despite muchhand-wringing nationally over the future direction of the economy,Denver's office market showed no signs of slowing during firstquarter." CB Richard Ellis is a little more reserved in itsanalysis: "Despite some pessimistic economic projections, Denver'soffice market continues to post stable results and encouragingfundamentals." The CBRE report does caution that "as turmoil in thedebt and housing markets continues to captivate headlines, thehealth of Denver's commercial real estate markets is beingincreasingly examined."

CBRE tallies Denver's total inventory at more than 103 millionsf while Grubb & Ellis tracks a bit more than 100 million sf,with about 22 million of that in the Downtown. Grubb & Ellispegs the direct vacancy rate in the overall market at 14.7% whileCBRE lists it at 12.5%, but the two big brokerage houses both agreethat the overall availability is more like 17%.

CBRE, in fact, sounds some notes of concern about Denver inspite of the market's generally lucky results so far. "The increasein available sublease space has the potential to threaten theoverall stability of the Denver market, for as this space isconverted into direct vacant space, it will ultimately result innegative absorption," the team concludes in its latest report.