Vacancy at the height of 11 years

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The Denver office space vacancy rate is higher than at any time since fall 2009, according to CBRE.

In the second fiscal quarter of this year – from April to the end of June – the vacancy rate in cities rose to 18.8%. This leaves out the still increasing volume of sublease access to the market. There are currently approximately 5 million square feet of technically “leased” space available to potential second tenants. According to CBRE estimates, this is more than 4% of the total space available on the market today.

Despite the losing streak caused by COVID-19, derailed hot market According to the company, building owners have reason to be optimistic, and it all starts with a significant increase in the number of new leases.

In the second quarter, deals were signed for more than 1 million square feet of office space. This is 44.4% more than the approximately 662,000 square feet leased during first three months of 2021… The total is still less than 2.2 million square feet of leased space in the first half of 2020 before the pandemic really hit the market.

“Leasing activities continued to diversify across industries,” CBRE researchers wrote in the company’s second quarter market report.

Tech companies took over 247,000 square feet, followed by the energy sector with 215,000 square feet.

Despite more active leasing activity, much more space was returned to the market than in the previous quarter, approximately 430,000 square feet of “negative takeover”.

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