"While the Aurora office market's direct vacancy and availability rates are on par with other office submarkets in the metro Denver area, we believe that the narrow margin between [the two], currently at 1.17%, continues to show the strong relative health of the Aurora office market when compared to other office submarkets of comparable size or larger in the metro Denver area," according to the report.
CB's Aurora team is headed by Jason Thomas and Phil Sweeney. The Aurora market has about 7 million sf of space all together, and ended the quarter with negative absorption of 196,880-sf, compared with negative absorption of 178,410 sf in the second quarter of this year.
Office rental rates showed little change in the third quarter, with Class A space up 1% to $17.64 per sf; Class B and the overall market down by less than 1%. Class B rates are $16.80 per sf and Class C rates are at $12.96 per sf, and the overall weighted market rate is $16.27 per sf.
While the Aurora market, because of its older office stock, has been viewed as a lower-quality product, that will be changing in the near to mid-term, Thomas and Sweeney project. One driving force is the E-470 toll road in southeast and northeast Aurora. When connected to the Northwest Parkway under construction, E-470 will provide a beltway around the Denver metro area, improving access and helping Aurora's corporate image and its economy, according to the two.
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