(To read more on the net lease market, click here.)
DENVER-The Denver office market began 2006 with moderate absorption, a decrease in sublease space and lease rates holding steady, according to a first-quarter report from the local office of CB Richard Ellis.
The direct net absorption was 259,078 sf, with mixed results among the submarkets, the report notes. However, much of the decrease in sublease space came from leasing, rather than returning to direct space. This sets the stage for greater direct absorption in the future, according to CBRE.
Tenants, however, aren't yet facing sticker shock in most submarkets. Lease rates are relatively flat, ending the quarter at an average of $17.07 per sf. Vacancies also are fairly flat, which decreased only slightly to 15.5%, down from 15.7% the previous quarter.
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