The average rental rate of all products was $6.47 per sf, he says, while it was just about $6 in 2000.
Construction is declining to its slowest pace since 1997, Kahn's statistics show. There is only 600,000 sf of new construction through the second quarter, while each year from 1998 to 2000 showed about 1.8 million sf being added each year.
The construction slowdown in large part is because the major developers such as Majestic, Catellus and Gateway (composed of local developers Bill Pauls and Paul Powers near DIA), don't have as many big projects on the drawing board as they did in previous years, he says.
At the same time, the market has absorbed 3.43 million sf so far this year, more than the 3.17 million sf last year and the best performance--other than 1999--in more than 10 years.
"Absorption tells the story," Kahn tells GlobeSt.com. "That should silence the critics, who are concerned the market faces overbuilding and is slowing," he adds.
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