Investors are showing an increased interest in the Denver Office Market according to the 2013 Pricewaterhouse Coopers first quarter real estate investor survey.  The average overall capitalization rate dropped to 7.1% which was a 67 basis point drop compared to 4Q 2012’s 7.77% and the lowest average since the record of 6.96% in 2008. CBD (central business district) showed lowest capitalization rate at 6.36% down 0.66% from a year ago partly because investors, tenants and employees like the energy in LoDo (lower downtown) which posted the lowest vacancy of 9.2%. Denver office average market rent for the initial year also grew 200 basis points from the previous quarter to 1.7%, however landlords still had to offer an average of 5.7 months of free rent to attract tenants and it took an average of 5 months to lease vacant property. Overall the investors that were surveyed are predicting an increase of property values as high as 10% for the Denver office market over the next 12 months.