Neiman points out that there is currently about 22 million sf of direct and subleased office space on the market. In a good market, tenants absorb 3 million sf to 4 million sf, but in recent quarters the market has been plagued by negative absorption.
But if the market returns to more typical historical absorption next year, and continues for the next five years, the market will absorb about 15 million sf by 2008, returning the market to about a 7% vacancy rate and one that is robust enough to justify new construction, he says.
Several developers say that while Neiman's historical analysis is correct, they note in the past Denver's office market has bounced back quicker than expected.
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