As the United States continues its (sometimes sluggish) rise out of recession, more Americans are getting back to work, and more employers are looking for office space rentals. Unfortunately, the previous economic downturn has meant a decrease in new construction, which means some cities, like Denver, are struggling to keep up with demand.
The outlook for the economy in Denver is good, with increased demand for office space from the energy, aerospace, engineering, health care and software sectors. However, for the company looking for space, the news isn't all good.
While the national office vacancy rates, according to Bloomberg, are at a three-year low at 17.1 percent, the Denver market is much lower. The fourth quarter of 2012 saw an office space vacancy rate of just 12.4 percent in the Denver area, down from 12.7 in the previous quarter.
Something else that the office space seeker in Denver will need to keep in mind is that 75% of Denver's office space is greater than 25 years old. This means that many modern features, like green energy efficiency and modern energy requirements, may be lacking. Those companies looking for space that isn't "obsolete" will find they have to pay more for that premium.
There is, however, some good news for the Denver market. According to MetroDenver.org, nearly 40,000 square feet of newly constructed office space was delivered in the fourth quarter of 2012, and nearly 900,000 square feet of office space across ten buildings is currrently under construction. Denver's dedication to attracting business, obviously, remains strong. (Indeed, they are proud of being highlighted by PriceWaterhouseCooper on their list of top-tier cities for four years in a row, and being in the top ten national cities to watch last year.)
The other good news is that you have OfficeFinder, which will help you find the best space for your needs in tight markets like Denver. For help in this or for any of your office finding needs, please feel free to contact us.
By: James OsgoodDenver Office Space , Office Vacancy Rate