Doug Wulf, a veteran office broker with Fuller and Co., conducted a recent downtown analysis that shows the overall direct office vacancy rate is 16.89%. When you include subleased space, the available vacancy rate rises to 22.08%.
However, Wulf took it another step and physically divided downtown in half. With this exercise, he found that buildings below Champa Street to LoDo, have a direct vacancy rate of 12.71%. With subleased, space, the available vacancy rate rises to 17.21%. While that's not a landlord's market, it's not totally unhealthy, either, he says.
But if you take the Uptown market, the overall vacancy rate is 20.74%, while the available vacancy rate is 26.58%. However, Wulf points out that the Uptown area is almost twice as large as the lower downtown market, with 12.54 million sf in 26 buildings, compared with 6.84 million sf in 24 buildings in lower downtown.Wulf says that tenants are drawn to lower downtown because of its numerous restaurants, nightlife, sporting venues, and theaters.
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