newsletter

January, 2015

Trouble in the Northwest Office Submarket. But for Whom?
Understanding the Northwest office submarket is critical to making a long term strategic plan for your company. Comparing the past statistics to the most recent 2014 4th quarter data paints a clear picture for the upcoming few years. The Northwest office market consists of 15 million square feet spread over 500 buildings. If we include Boulder in the data pool, the numbers jump to 27 million square feet in over 1,200 buildings. To put those numbers into prospective, the Downtown Denver CBD market is 35 million feet in 345 buildings. The Northwest market is large but more importantly is spread out over a huge amount of land area and number of buildings.
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As the Boulder and Denver markets on either side of the Northwest submarket tighten, the pressure relief valve for those tenants is in the Northwest. Office vacancy in Boulder is currently under 4%, the North Denver submarket is 9% and the Central Business District of Denver is 7.6%. The Northwest vacancy has recently dropped to below 10% as a result from the recent market demand and migration.

As we see vacancies tighten, lease rate increases follow. So I ask again: Is there trouble in the Northwest office submarket and for whom? It is not the Landlords who are challenged by this market and they are now adjusting to the shifting market quickly. If they have not raised your rent, they will soon. Now is the time to explore your options and lock in rates before the upswing gains momentum.
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Serving the Boulder, Denver metropolitan areas and the entire Colorado market.

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303-974-7600
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