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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.

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