Denver CBD Office Vacancy at 20-Year Low

Class A office space in Denver’s Central Business District boasts a vacancy rate of less than 3%, the lowest in about 20 years, according to a midyear report.

”The CBD is absolutely perfect right now,” says Nathan Johnson, a broker with the Denver-based Frederick Ross Co. Johnson has been recognized as the area’s top office broker by the Colorado Chapter of the National Association of Industrial and Office Properties.

The overall vacancy rate is 5.1%. The Denver market is considered strong enough to absorb a million sf in two new high-rises, one by the Hines Cos. of Houston and the other by Equity Office. Equity Office has yet to reveal its plans for a second office building in its Tabor Center complex in downtown Denver.

Johnson also concludes the northwest corridor has absorbed a record 871,000 sf in the first six months, more than any other submarket. The corridor encompasses the Interlocken Business Park, which includes office campuses for Sun Microsystems and Level 3. The northwest corridor’s absorption rate five years ago “was basically zero,” says Johnson.