X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-Cushman & Wakefield broker Daniel C. Beer compares the local office market to the weather in early June when Boeing Co. officials were in town. He notes that on their first day in town, they were greeted by sunny skies and weather in the 70s; the next day, the temperature dropped by 50 degrees and it snowed.

Six months ago, office rents were at an all-time high and vacancies were near an all-time low, he says. Now, it’s a renter’s market for the first time in six or seven years, he says.

The culprit? Four million sf of subleased space on the market, much of it along the Northwest corridor between Denver and Boulder and in the Southeast market.

But it’s not fair to compare the current market to the depressed times of the mid-1980s, Beer says, even though the Northwest submarket’s vacancy rate will rise to more than 20%, which isn’t that far off from the worst days of the ’80s.

But now, instead of empty space, most of it is subleased space and owners are still collecting rent, he says.

Also, the small Northwest market could quickly turn around if only one or two major companies from Northern California, tired of brownouts and blackouts, moves to the corridor, he says.

“It could change quickly,” he says.

Just like the Colorado weather.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.