Denver office leasing market is still a tenants market, but the average number of free month’s rent that landlord’s offer as concessions has fallen in Q1 of 2012. Pricewaterhousecoopers LLP report shows landlords offering an average of 6.2 months of free rent, down from 6.6 in the first quarter of 2011. Capitalization or cap rates also dropped in the first quarter to an average 7.87% in the overall Denver office market, down from 7.94% in the Q4 and a year over year decline from Q1 2011’s 8.16%. The Denver central business district’s cap rate was even lower in Q1 at 7.04%. The decline in cap rates is a key indicator of investor’s expectations regarding the property value and income potential. Investors still remain conservative in their cash flow model.