The Delta report is projecting an 11.6% office vacancy rateduring the next expansion cycle, compared with its vacancy rate of17% mid-year 2004. The Denver metro area needs a 15.5% officevacancy rate for equilibrium between supply and demand, accordingto Delta.

When compared with other cities across the country, metro areasprojected to have lower vacancy rates through 2006 include New YorkCity, Washington, DC, South Florida, Boston, San Francisco, OrangeCounty, CA, Los Angeles, Austin, TX and Atlanta. By contrast, thereare only five metro areas projects to have higher office vacancyrates--Chicago, Phoenix, Houston, and Dallas/Fort Worth.

The report notes Denver is expected to add only 1,500 jobs fromJune 2004 until June 2005, but the metro area will likely add morethan 40,000 jobs per year in the next expansion during the nextcycle.