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NW Suburban Office Market On The Ropes

DENVER-It could easily take four or five years for the submarket to recover from an overall vacancy rate of 54%, says Chris Phenicie, a broker with Commercial Colorado. Class B space has a 77% vacancy rate.

By John Rebchook | Updated on January 23, 2002

DENVER-The struggling northwest suburban office submarket along the US 36 corridor is suffering from an overall vacancy rate of almost 54%, shows a new report. No market in Denver’s history has ever collapsed as quickly.

The market along US 36 between Boulder and Westminster had only a 1.64% vacancy rate at the end of 2000, according to the report by Chris Phenicie, a broker with Commercial Colorado who specializes in the market with partner David Hart.

Two office projects under construction, which are almost completed, will add 317,000 sf to the market, driving the vacancy rate to 59%, Phenicie says. He’s projecting that as tenants take advantage of the type of incentives not offered in the Denver area since the real estate depression of the mid-1980s — up to a year’s free rent, for example – the vacancy rate could fall to about 40%.

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