Third Quarter Commercial Update

The real estate market in Colorado is proving to be one of the most resilient in the nation. This holds true for both the residential and commercial sectors. “The office vacancy rate in the Denver market area decreased to 11.5% at the end of the third quarter 2013. The vacancy rate was 11.8% at the end of the second quarter 2013, 11.9% at the end of the first quarter 2013, and 12.1% at the end of the fourth quarter 2012.” according to, a commercial real estate listing service.

“The average quoted asking rental rate for available office space, was $21.66 per square foot per year at the end of the third quarter 2013 in the Denver market area. This represented a 2.0% increase in quoted rental rates from the end of the second quarter 2013, when rents were reported at $21.23 per square foot.” reports.

Finally, has calculated “In the second quarter, 28 office transactions closed with a total volume of $497,093,739.00. The 28 buildings totaled 3,102,898 square feet and the average price per square foot equated to $160.20 per square foot. That compares to 25 transactions totaling $277,866,000.00 in the first quarter 2013. The total square footage in the first quarter was 1,887,145 square feet for an average price per square foot of $147.24.”

Overall, the Denver metro market is demonstrating a strong recovery pattern and as vacancy rates drop, lease rates climb, making the office market a favorable trading exchange for investors. Commercial brokers and investors alike are hopeful that the upward trends will hold steady, keeping commercial property a stable investment for consumers.