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Denver Office : Tightening Drives Fundamentals - Q2 2014

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Metro Denver’s office market has steadily improved since the national recession peaked in 2009. As economic conditions normalized, business optimism resurfaced and job growth resumed, leading to a significant uptick in local office demand. This pushed vacancy levels down and fed pronounced rental rate appreciation in higher-end properties as available supply dwindled. In turn, a new cycle of investment and development activity has emerged that may soon approach levels last reached before the downturn. In recent quarters, however, supply-side momentum has escalated faster than demand-side fundamentals may be able to sustain. Specifically, investors and very well-capitalized tenants have been rapidly bidding up prices, prompting savvy occupiers to more carefully weigh preferences against cost sensitivities.

Source : DTZ (Groupe UGL)

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Mots-clés : DTZ