X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-The CB Richard Ellis South Denver office team has seen the future of the largest office submarket in the metro area, and it is slowing.

The team of Sergio Castaneda, John Marold, Mitch Bradley and Lang Williams are now projecting 1.46 million sf of office leasing to take place along the corridor in the next 12 months, a 19.7% drop from the previous projects of 1.82 million sf.

Although the leasing activity at almost 1.5 million sf is still relatively strong, the team reports that the majority of the activity “results in cannibalization–the movement of companies into one property at the expense of others.”

Projected absorption is also declining, falling to 625,000 sf from 882,000 sf, about a 29% drop. A total of 91 tenants are looking to occupy the 1.46 million sf in the next 12 months, according to the team’s market update.

The team has identified three tenants each seeking more than 75,000 sf of space for a total of 500,000 sf. One tenant is seeking 50,000 sf. Ten tenants are seeking 25,000 to 49,999 sf for a total of 340,000 sf. Twenty tenants are seeking 10,000 sf to 24,999 sf for a total 318,876 sf. Twenty-two tenants are seeking 5,000 to 9,999 sf for a total of 151,264 sf and 35 tenants are looking for less than 5,000 sf for a total of 109,809 sf.

So far this year, the CB team has completed 69 transactions for a total of 581,088 sf.

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
  • 1 free article* every 30 days across the ALM subscription network
  • 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 © 2021 ALM Media Properties, LLC. All Rights Reserved.