According to CoStar, the vacancy rate for the office market in Denver rose to 10.1% in Q1, which was up over the previous quarter. Sublease space increased as well. Rental rates were at $25.54, an increase over the fourth quarter of 2016.
The largest lease signings in 2017 included the 333,929 sf lease signed by Encana Oil & Gas Inc. in downtown Denver; the 72,598 sf deal signed by United States of America in the Denver Tech Center; and the 45,598 sf deal signed by Zayo Group.
The Denver industrial market finished the first quarter of 2017 at 5% vacancy rate, up from 4.9% the previous quarter. The largest lease signings included a 357,555 sf lease signed by UPS in Montebello and Summit Warehouse & Logistics, LLC in the same area. The average rental cost for available industrial space was $8.27 /sf per year.