Denver office vacancy drops to 10.0% in second quarter 2015, down from previous quarter with a net positive absorption of 728,132 square feet. In comparison, the first quarter 2015 saw a net positive absorption of 346,165 square feet, while the fourth quarter 2014 saw a net positive absorption of 625,675 square feet, and third quarter 2014 with a net positive absorption of 1,040,808 square feet.

Class-A office market recorded a net positive absorption of 127,535 square feet in second quarter 2014, compared to first quarter 2015 with a net positive absorption of 324,134 square feet, while the fourth quarter 2014 saw a net positive absorption of 205,093, and third quarter 2014 with a net positive absorption of 386,787 square feet.    Vacancy rate for Class-A office market remained at 11.1% at the end of second quarter 2015, identical to first quarter 2015, while fourth quarter 2014 vacancy rate stood at 11.6% vacancy, and third quarter 2015 at 11.8% vacancy rate.

Class-B office market had a strong second quarter with a net positive absorption of 597,560 square feet, compared to 31,140 square feet in first quarter 2015, while fourth quarter 2014 saw a net positive absorption of 344,300 square feet, and third quarter 2014 with a positive absorption of 640,369 square feet.    Class-B office market vacancy for second quarter 2015 stood at 10.4%, compared to first quarter 2015 at 10.9%, and fourth quarter 2014 at 11.0%.

Net absorption for Denver’s Central Business District came in on the lighter side with only 2,345 square feet for the second quarter 2015, compared to 28,445 square feet of positive absorption in first quarter 2015, while fourth quarter 2014 saw a net positive absorption of 141,699 square feet. Third quarter 2014 saw the biggest jump with 383,188 square feet of net positive absorption.    Vacancy rate for Denver’s Central business District remained at 10.9% at the end of second quarter 2015, identical to first quarter 2015, while fourth quarter 2014 at 11.0%, and 11.4% at the end of the third quarter 2014.

The suburban markets also had a strong second quarter with 725,787 square feet which was nearly double compared to first quarter 2015 with positive absorption of 317,720 square feet, while fourth quarter 2014 had a positive absorption of 483,976 square feet, and third quarter 2014 with a positive absorption of 657,620 square feet.

Vacancy rate for the Denver office market area stood at 10.0% at the end of second quarter 2015, compared to 10.3% at the end of first quarter 2015, while fourth quarter 2014 stood 10.5%, and third quarter at 10.6%.

Asking rental rates for Denver office market area for all classes at the end of second quarter 2015, was $23.81 per square foot. This represented a 1.4% increase in quoted rental rates from the end of the first quarter 2014, when rates were reported at $23.49 per square foot. The average asking rate for Class-A was $29.29, while Class-B rates stood at $20.72, and Class-C rates at $16.27. Average asking rental rates for CBD was $32.23 at the end of second quarter 2015, and $21.71 in the suburban markets, while quoted rates for the first quarter 2015 were $31.11 in the CBD and $21.43 in the suburbs.