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DENVER–Investment activity along the southeast suburban office market is thriving, according to the June Office Market Update by the CB Richard Ellis South Denver Office Team. The team of senior vice presidents Sergio Castaneda and John Marold, vice president Mitch Bradley, senior associate Cameron Brown and associate Brett Nathan tracked 11 major office sales along the corridor from January through early May along the corridor.

A GlobeSt.com analysis of the figures shows that the acquisitions represent 1.58 million sf of inventory. They sold a total of about $135.09 million, or an average sales price per sf of $85.03, according to the GlobeSt.com analysis.

But the average price doesn’t tell the entire story, as the CB team’s report shows a wide price per sf, depending on the occupancy of the building. For example, the least expensive building to sell–and perhaps the greatest value-added opportunity–was the 84,253-sf One Southgate building that fetched $3.3 million or about $391 per sf.

By contrast, the class A One and Two Greenwood Plaza buildings, with a total of 199,443 sf, sold for $220.61 per sf. The buildings are 100% leased. They not only sold for the most in total dollars and on a per sf basis, but also represented the only sale to sell for more than $100 per sf.

In addition to these sales, the CB team says it expects about 850,000 sf to trade in the next 90 days. That would mean close to 2.4 million sf in sales by the end of the third quarter, which bodes well for sales activity in 2005, as traditionally many sales take place in the fourth quarter.

“Investors are still anxious to buy as they sense that the market has turned in a positive direction and there is an opportunity to add value,” states the report. May also was a good month for the CB team. It completed 23 of its 74 deals this year last month. The May transactions accounted for 261,244 sf of the 605,465 sf completed by the team so far this year.

The largest deal was the 119,350-sf sales of the District 20 building at 1110 Chapel Hills Rd. in Colorado Spring. The smallest lease was to Craig Curtis for 791 sf in the Park Arapahoe building.

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