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DENVER-The metro-area office market hit its stride last year, improving by almost every measure, according to the latest MarketScope report by Trammell Crow Co. Net absorption increased dramatically, the vacancy rate dropped and rents increased.

The report notes than 861,657 sf was absorbed in the fourth quarter, bringing last year's total to 2.13 million sf. That represents more than a seven-fold increase from the 277,593 sf absorbed in 2004. The class A segment saw its absorption decline slightly to 897,647 sf, while class B absorption skyrocketed from negative 426,143 sf at year's end 2004 to 1.23 million sf in the fourth quarter 2005, the report notes.

Meanwhile, the direct vacancy rate dropped 100 basis points to 15.7% in the fourth quarter, a drop of 190 basis points from year-end 2004. The Midtown market, which is relatively small at 5.5 million sf, could boast the lowest vacancy rate at 11.3%. The highest vacancy rate is along the northwest corridor at 27%. The Central Business District ended the year with a 16.5% vacancy rate, while the southeast/Interstate 25 corridor 's vacancy rate was at 20.25%. The CBD, which saw a great deal of activity from energy companies and law firms, improved by 140 basis points and the southeast corridor improved by 210 basis points.