Denver’s commercial real estate is showing glimmers of hope but the recovery is coming at a slow pace, according to the Q1 2012 MarketView report from CBRE Group Inc. All three commercial submarkets have had year over year decline in total vacancy rate and two of the three submarkets had positive absorption of space. The Denver office space market showed four quarters of consecutive absorption and the Denver industrial space posted its eighth straighter quarter of positive absorption. Average asking rates have increased in two of the three submarkets from fourth quarter; office rose 4 cents to $19.79 per square foot, industrial climbed 6 cents to $6 per square foot, and retail fell 9 cents to $16.47 per square foot. The 2011 investment market started the year strong especially in the Denver Tech Center with the sale of Terrace Tower for $37.83 million to Sun Life Assurance Co of Canada and largest deal of the year with the sale of Plaza Tower One to Granite Properties for $82.5 million. Demand for core assets in Denver’s key submarkets remains higher than any time since 2007. The Denver metro market vacancy rate fell to 15.3% from both Q4 and year over year. The Denver office market absorbed 566,000 square feet out of 170.7 million total square feet. The Denver industrial market absorbed 800,125 square feet out of 223.9 million available. The vacancy rate is at 7.3% and slightly down quarter over quarter and year over year. The Denver retail market had a negative absorption of 125,000 square feet out of 78.4 million square feet available. The vacancy rate is at 8.3%, down from 8.9% year over year and Q1 of 2011.