"The Denver real estate market has become a vast wilderness,'' the report begins. ''The northwest office market and the southeast office market -- office/flex markets -- are both accelerating toward 30% to 40% vacancies.''
Not so with the northeast industrial market, which boasts a 5.91% vacancy rate at the end of the second quarter, compared with 5.2% a year earlier, despite 536,393 sf of new construction.
''The lone bright light seems to be the northeast industrial market,'' says the report.
Class A industrial space boasts 633,165 sf of net absorption in the second quarter, and is on target for 1.3 million sf of absorption this year.
''The vacancy rate for class A space dropped to 7.9%, the lowest ever,'' the report crows.
However, that is tempered somewhat by the negative absorption of 448,298 sf in class B and class C space, non-class A space vacancy rate rose to 5.43%.
There also is an increase in subleased industrial space available, which rose 824,780 sf.
The report sums up the market this way: ''The future of the northeast market remains bright and will get brighter as the rest of the market experiences flickering flames or rolling blackouts.''
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