From July 2015 until September 2015, several office buildings were completely constructed in the metro area. Denver Property Management noted that earlier this week, about a million square feet of new office space was brought to the market. According to Jessica Ostermick, the director of research and analysis in Denver, CBRE is currently constructing another 2.5 million square feet building.
Ostermick also said that Denver’s commercial sectors comprising of the office, industrial and retail sectors are performing well. Denver is not experiencing any alarming red flags that other cities have she says.
For the third quarter, office leasing remains strong while vacancy increased to 12.9% to 12.9%, this however is caused by tenants who are starting to move from older buildings to the newly constructed buildings.
In Denver ,the retail market is thriving which has increased the investment activity. In the third quarter, one of the most notable sale made is the sale of Belmar mixed use development to Starwood Capital group for about $250 million.
The healthy Denver market attract more and more eager investors. Meanwhile the industrial market continues to have slow yet steady growth for the 22nd successive quarter.
Denver property management states that because of the current market conditions, tenants can expect an increase in lease rates.