Denver Office: Number Nine, With a Bullet
Cassidy Turley previewed its Q1 office data this week, and Denver found itself in the Top 10 nationwide in two important metrics, net absorption and rental increases. (In the Top 10 twice? Now they can't call us a one-hit wonder.)
The Mile High City came at #9 in the nation for net office space absorption in Q1, at 575k SF. The only other Western cities on the list were San Francisco and Phoenix, which were just ahead of Denver (Texas not counting as Western, since it’s pretty much in a class of its own; just ask any Texan). But for the record, Dallas and Houston were in the Top 10 too.) Northern New Jersey was first at 1.8M SF. Denver was #10 in rental growth, seeing a 5.7% increase year-over-year; San Francisco was tops in that category, with 25% growth.
KBS Capital Advisors SVP/market leader Mark Brecheen, whose bailiwick includes Denver, says that the market is coming off its best year since before the recession, but just as importantly, the strength in absorption and rental rate growth is evenly spread throughout the submarkets. Denver has forward momentum because of strong demographics, a diverse economic base, and an attractive quality of life (wink). California-based KBS owns the Granite Tower downtown, as well as 210 University in Denver; Crescent VIII in Greenwood Village; and Peakview Tower in Centennial.