Denver is one of the most attractive cities for commercial real estate investment and transactions. Last year, the local market saw more than 2 million feet of office space come on the market. Nearly 2,000,000 more feet of office space opened up in the Denver suburbs and surrounding areas. At the same time, there is virtually no commercial real estate available for lease in the city, as almost all are occupied instantly by business representatives. The reason for this is that Denver’s real estate market is dynamic, growing quickly and competitive. Business growth and improving demographics are driving new demand for office real estate.
What is the average rent in Denver
Commercial real estate price per square foot in Denver, Colorado are $34.93 on average. The rental price of office space varies from one class to another. The rent in Denver for a Class A office was $36.92. In all markets, commercial space costs $30, $10 per foot. However, the assets consisting of Class C office space paid from $17.51 per square foot. In general, the cost of commercial real estate in Denver differed significantly from the weighted average price tag for office space in Colorado as a whole.
Submarkets in Denver vary in property selection, affordability and amenities, which affects fluctuations in office space rental prices and commercial rental space available. The overall level of vacant office space in Denver has reached the 20% mark.
A more detailed study shows a definite pattern in Denver’s submarkets. The lowest level of vacant office space was 9.14 percent in East Denver, while Highland had a 37.16 percent vacancy rate. The same situation applied to coworking spaces in Denver.
|Submarket||Requested rent||Space vacancy rate|
|Low Down||$43,13||10,69 %|
|Five Points||$41,87||14,84 %|
|Central Business District||$37,53||27,39 %|
|Cherry Greek||$35,71||20,17 %|
|Capital Hill||$30,92||18,34 %|
|I-25 Corridor||$19,92||14,35 %|
Office space in Denver increased by 23.55 % and the selling price of commercial real estate in the city is $320.65 per square foot. Overall, office space in Colorado could be bought for $229.47 per square foot.
There were 24 deals in the Denver office real estate market in 2021, increasing annual sales to nearly a billion dollars. The largest deal was the purchase of Granite Tower for $174.1 million. As you can see, the market is growing and isn’t going to stop, so development activity is projected to improve in the near future.
What types of commercial property can be rented
Commercial real estate includes buildings or premises that can generate rental income or investment growth from capital investment. The office space itself can be different. So, commercial properties in CO can be like this:
- Commercial offices. Many of them are custom-built and may have multiple tenants.
- Commercial spaces. Typically, they are occupied by restaurants and stores that do retail sales. This may be large buildings with many apartments and separately located buildings.
- Industrial premises and warehouses. These are common industrial enterprises, located along the main transport routes.
Everyone can choose a suitable property from these options.