By comparison, the Northwest corridor between Boulder and Denver, which depended heavily on telecommunication companies such as Level 3, Sun Microsystems and the bankrupt 360Networks, has the dubious distinction of the highest vacancy rate of any of the dozen submarkets tracked by Grubb & Ellis. The Northwest corridors' vacancy rate is 25.6%.
The Southeast Suburban market, the largest submarket with 25 million sf compared with 22.9 million sf in the CBD, has a 17.4% vacancy rate. Only the CBD 's vacancy rate is below the overall average vacancy rate of 15%.
The CBD also commands the highest asking rental rates at $26.97 per sf for class A space and $21.61 for class B space. The Northwest corridor 's asking rate for class A space is $23.77 and $18.30 for class B space. The Southeast Suburban's asking rate for class A space is $23.08 per sf and $20.51 for class B space.
However, in one important category, the CBD trails not only the Northwest and SES corridors, but every other submarket, too. In the third quarter, the CBD had 343,705 sf of negative absorption and in the first nine months of the year it posts 947,686 sf of negativeabsorption. The CBD accounts for the lion's share of the 1.47 million sf of negative absorption in the first nine months of the year and the 524,553 sf of negative absorption in the third quarter.
The Northwest corridor, by contrast, had only 29,518 sf of negative absorption in the third quarter and through September actually posted positive absorption of 182,327 sf. The Southeast Suburban market had 156,093 sf of negative absorption in the third quarter and 524,553 sf of negative absorption year to date.
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