Denver's suburbs and downtown had a blended average office rate of $17 psf, according to an analysis by the Denver research staff at C&W, as well as office broker H. Gregory Bante. To find lower rates, one would have to go to southern New Hampshire, the Gulf Coast of Florida or St. Louis, MO.
Southern New Hampshire charged an average of $15.40 psf for office space; St. Petersburg-Clearwater, FL, was at $16.55; and St. Louis had an average rate of $16.96. Next was Denver, followed by Dallas at $17.92.
Midtown, New York City, had the most expensive office space at $47.30 psf, according to Cushman & Wakefield. Unfortunately, Denver's market will probably soften by another $1 or $2 psf, before it stabilizes, Bante says.
On the other hand, the Denver market isn't in as bad a shape as it was in 1989 and 1990, when its average rent was in the $13 to $14 psf range. During those days, Denver jockeyed for position of having the lowest rates with Kuala Lumpur in Malaysia.
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