The chamber notes the Denver metro office vacancy rate decreased to 15.4% in the third quarter of 2003, down from 15.5% in the second quarter of 2003.
The office vacancy rate including sublease space fell to 18%, down from 18.1%. The average office lease rate has dropped to $17.69 per sf, down from the peak of $21.56 reached in the first quarter of 2001.
The direct industrial vacancy rate of 7.6% in the third quarter of 2003 is up from the 7.4% rate posted last quarter. The average lease rate slipped to $5.08 per sf, down from $5.52 per sf posted during the third quarter of 2002.
The direct vacancy rate in flex buildings continues to increase at a strong clip.
The direct vacancy rate increased to 17.3% in the third quarter of 2003, up from 16.5% last quarter.
The vacancy rate for flex space is eight percentage points higher than the market segment's healthiest point in the fourth quarter of 2000 when vacancy was just 9.3%.
Construction activity is virtually non-existent in this market segment with only about 60,000 sf currently being built in five buildings.
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