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DENVER-The Denver-Boulder area office market and economy continues to lag the recovery across the country, but the office market is finally starting to show signs of bouncing back from the bottom, according to the latest report by locally based MacLaurin Stewart, a member of the ITRA Realty Group. “Office vacancy rates are 26% in the Northwest, 23% in the Southeast and 18% in the Central Business District,” according to the report.

“With good news startling to cumulate, office landlords will begin looking for reasons to start raising rents and simultaneously cutting back on concessions, such as improvement dollars,” the report adds. As landlords begin seeing the “light at the end of the tunnel,” wise office tenants should act now to lock in lease renewals and go back into the market to get “critical negotiating leverage,” according to MacLaurin Stewart, headed by Will Gary in Denver and Norm DeHart in Boulder. The two note that every dollar saved in rent is a dollar of net profit.

“If office tenants have more than nine months of remaining lease term, they should consider extending their leases,” the company advises. “We have already run into a few landlords who are feeling their oats and not being as negotiable as we’d hoped.” Delays in taking advantage of the still soft market could end up in costing local tenants thousands of dollars, they note.

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