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DENVER-The northwest and southeast corridors of metro Denver, two hardest hit office markets, are showing almost no signs of recovery, according to a third-quarter report by Denver’s Julien J. Studley office. “The third quarter continued to show a downward trend for the commercial real estate market, and especially the northwest and southeast metro areas,” says Rob Link, senior vice president and branch manager of Studley’s Denver office.

“”The second quarter showed signs that we had hit the bottom, but we just slid to a lower shelf,” Link adds. “This is good news for tenants with good credit who want to investigate their options in the market.”

According to the Studley Report, average rental rates in the southeast Denver metro area are now at $17.18 per sf, down from $20.83 per sf a year ago. The report also shows that there is over 8.5 million sf of space still available in southeast Denver, putting availability rates at 30%.

Along the northwest corridor, class A space continues to struggle, with 66% of space available during the third quarter. Some buildings in the northwest, such as 390 Interlocken, which was completed more than eight months ago, remain entirely empty.

“Landlords aren’t giving away space, but it is still a great tenants’ market,” says Link. Studley specializes in tenant representation.

The overall northwest corridor’s vacancy rate, which includes direct and subleased space, is 44.6%, according to the report.

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