Denver continues to strengthen and grow as a hub for innovative, tech-savvy entrepreneurs bringing a highly educated and diverse workforce to the area. For the first time in 5 years, Q1 of 2017 showed an increase in office vacancies where big oil and gas companies are moving out of the area, making way for high tech and startups to move in. Companies such as Gusto, WeWork, CoBiz Financial Inc., Prologis, Ibotta, OnDeck Capital, Hogan Lovells, and Boa Technology recently signed deals consuming over 654,000 sq ft of office space. Rent growth in these spaces is expected to increase by 2.6% over the course of the following year.
- Strongest occupancy gains are now occurring in the Denver suburbs, particularly in the metro’s southeast corridor.
- New construction has slowed vacancy compression. After three straight years of 70 basis point declines from 2013-2015, vacancies only managed a 20 basis point decline in 2016. Moreover, following five straight years in which vacancies never increased in back-to-back quarters, the vacancy rate jumped for a third consecutive quarter in 17Q1.
- Denver’s population continues to grow at roughly twice the national average.
Whether you are looking for the perfect office space to land or relocate your company, or capitalize on the growing labor force in the rental and housing market, the Benchmark team is here to help you navigate the market, find your perfect space, and capitalize on your business goals.