While Denver’s economy – and rental rates for office space – remain strong, the office market saw negative absorption in the first quarter of the year, largely due to sublease space becoming vacant, according to JLL’s Office Insight summary.
The average direct asking rate for office space in the Denver metro continued to climb in the first quarter, reaching $26.19 per square foot, a 9.3 percent increase over the past 12 months, JLL reported.
At the same time, the market experienced 349,535 sf of negative absorption. Newfield Exploration and WPX Energy’s subleases at 1001 17th St. contributed to more than 240,000 sf of that total.
As a result, overall vacancy, including sublease space, increased to 13.7 percent, according to JLL. In addition, availability in both vacant and nonvancant space is increasingly rapidly throughout the market.