Submarket Snapshot_4Q2023_Office_Interactive

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DENVER OFFICE Q4 2023 SUBMARKET SNAPSHOTS

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BOULDER

CBD Central Business District

NW CORRIDOR

E470

SES Southeast Suburban

76 INTERSTATE

CHERRY CREEK

25 INTERSTATE

RiN o

CO BLVD/GLENDALE Colorado Blvd & Glendale

70 INTERSTATE

CBD

RiN o River North

70 INTERSTATE

E470

CHERRY CREEK

CO BLVD/ GLENDALE

NW CORRIDOR Northwest Corridor

SES

25 INTERSTATE

BOULDER

DENVER METRO

SUBMARKET SNAPSHOT CENTRAL BUSINESS DISTRICT

OFFICE 4Q23

KEY TAKEAWAYS

4Q23 LEASING & ABSORPTION 72,200 4Q23 LARGEST LEASE 58,100 4Q23 LARGEST MOVE-OUT

While the asking rates for the CBD remained relatively stable, direct rents contracted by $0.08 psf in fourth quarter 2023. New construction activity remained subdued during Q4 2023, with only one building under construction and no others scheduled to commence construction until 2024. Sublease availabilities experienced a 20-basis point (bps) increase, as CBD experienced a continued trend of tenants looking to downsize and/or sublet their space. The large amount of sublease availability is expected to slowly affect direct vacancies as subleases expire in the coming quarters. Flight-to-quality remained salient within the Central Business District (CBD) as Class A product comprised of 92.5% of the total leasing volume in Q4 2023. City and County of Denver secured the largest lease in the CBD by signing for 72,200 square feet at 370 17th Street Investment activity has slowed significantly, attributable to the elevated cost of capital and the enduring uncertainties prevailing within the office sector.

-359,900 4Q23 ABSORPTION 275,500 4Q23 LEASING ACTIVITY

2023 INVESTMENT ACTIVITY

ASKING RENTS

AVERAGE CAP RATE

TOTAL SALES TRANSACTION

LARGEST SALES TRANSACTION

AVG. DIRECT RENTS—FSG $39.26 (ALL CLASSES) AVG. DIRECT RENTS—FSG $42.69 ( CLASS A ) AVG. DIRECT RENTS—FSG $34.13 (CLASS B)

CONSTRUCTION ACTIVITY

Q4 2023

QOQ CHANGE

DIRECT VACANCY (ALL CLASSES)

25.4%

70 bps

UNDER CONSTRUCTION 704,000 SF

22.4%

10 bps

CLASS A VACANCY

37.2%

270 bps

CLASS B VACANCY

PROPOSED OFFICE 1,702,800 SF

SUBLEASE AVAILABILITY

5.9%

20 bps

SUBMARKET SNAPSHOT CENTRAL BUSINESS DISTRICT

OFFICE 4Q23

CBD MARKET

4Q 2023

3Q 2023

4Q 2022

Inventory (SF)

32,086,025

32,174,750

32,200,334

Under Construction (SF)

704,036

Direct Vacancy (all Classes)

22.2%

25.4%

24.7%

Direct Vacancy – Class A

19.6%

22.4%

22.3%

Direct Vacancy – Class B

32.3%

37.2%

34.5%

Sublease Availability

1,891,465

1,896,873

1,836,229

Avg. FSG Direct Asking Rate (all Classes)

$38.89

$39.26

$39.34

Avg. FSG Direct Asking Rate – Class A

$42.67

$42.69

$42.63

Avg. FSG Direct Asking Rate – Class B

$33.35

$34.13

$33.93

Net Absorption – Current Qtr. (SF)

123,848

-359,890

-499,490

Net Absorption – YTD (SF)

-611,227

-1,155,332

-795,442

Leasing Activity – Current Qtr. (SF)

366,385

275,543

409,504

Leasing Activity – YTD (SF)

1,723,752

1,234,255

905,590

RENTAL RATE VS. VACANCY RATE

LEASING ACTIVITY VS. ABSORPTION

(600,000) (400,000) (200,000) - 200,000 400,000 600,000 800,000 1,000,000

10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

$35.00 $36.00 $37.00 $38.00 $39.00 $40.00 $41.00

Direct Gross Rental Rate

Overall Gross Rental Rate

Leasing Activity Net Absorption

Direct Vacancy

Overall Vacancy

SUBMARKET SNAPSHOT CENTRAL BUSINESS DISTRICT

OFFICE 4Q23

KEY LEASE TRANSACTIONS Q4 2023

DATE LEASED

PROPERTY

TENANT

SIZE (SF)

TYPE

MICROMARKET

CARA STAMP Research Manager Tel: +1 303 218 3258 cara.stamp@cushwake.com MINH NGO Research Analyst Tel: +1 303 312 4293 minh.ngo@cushwake.com

Oct-23

370 17th Street

City and County of Denver

72,200

New Deal

Uptown

Nov-23

1001 17th Street

Coresite, LLC

49,500

Renewal

Midtown

Dec-23

1900 16th Street

PricewaterhouseCoopers, LLP

47,500

New Deal

LoDo

Nov-23

1560 Broadway

IWG

43,300

New Deal

Uptown

KEY SALES TRANSACTIONS YTD 2023

DATE SOLD

PROPERTY

BUYER | SELLER

SIZE (SF)

SALE PRICE PRICE/SF MICROMARKET

Concord Energy, LLC | Westfield Company Edwin P. Aro | Cherry Creek Family Office

May-23

1430 Wynkoop Street

44,000

$18.1M $410/SF

LoDo

Jan-23

1725 Blake Street

15,800

$4.0M $255/SF

LoDo

Feb-23

1420 Blake Street

Gibson G. Smith | Douglas S. Brown 16,700

$1.9M $194/SF

LoDo

UNDER CONSTRUCTION PROJECTS

ADDRESS

OWNER / DEVELOPER

SIZE (SF)

MAJOR TENANTS

MICROMARKET

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com. ©2024 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. cushmanwakefield.com

Riverside Investment & Development

1900 Lawrence Street

704,000

Gibson, Dunn & Crutcher

Midtown

HISTORICAL SUBLEASE AVAILABILITY

2.5

2.0

1.5

1.0

SF(Millions)

0.5

0.0

2018 2019 2020 2021

2022 2023

OFFICE 4Q23 SUBMARKET SNAPSHOT SOUTHEAST SUBURBAN

KEY TAKEAWAYS Southeast Suburban (SES) submarket recorded the second highest amounts of negative absorption in the Denver Metro at negative 118,800 sf, with only Central Business District (CBD) recording higher negative absorption. Despite that, SES net absorption improved by 47.9% QOQ. Leasing activity within SES declined by 18.4% QOQ, with Class A product making up more than 56.4% of the new leasing activity in 4Q 2023 emphasizing a flight-to quality trend. One of the most robust development pipelines in the Denver Metro came from SES as it boasted nearly 5.8 msf in proposed projects. Despite that, economic challenges are still prevalent, which has led to a continued delay in the development projects. SES direct vacancy increased by 10 bps in 4Q 2023. Direct vacancy is expected to fluctuate as the market continues to seek balance in the face of upcoming sublease expirations and the continued impact of hybrid-work models.

4Q23 LEASING & ABSORPTION 27,200 4Q23 LARGEST LEASE 34,800 4Q23 LARGEST MOVE-OUT

-118,800 4Q23 ABSORPTION 269,000 4Q23 LEASING ACTIVITY

2023 INVESTMENT ACTIVITY

ASKING RENTS

AVERAGE CAP RATE

TOTAL SALES VOLUME

LARGEST SALES TRANSACTION

AVG. DIRECT RENTS—FSG $30.68 ( CLASS A ) AVG. DIRECT RENTS—FSG $24.16 (CLASS B) AVG. DIRECT RENTS—FSG $28.26 ( ALL CLASSES )

CONSTRUCTION ACTIVITY

Q4 2023

QOQ CHANGE

DIRECT VACANCY (ALL CLASSES)

UNDER CONSTRUCTION 0 SF

18.9%

10 bps

19.9%

10 bps

CLASS A VACANCY

17.8%

10 bps

CLASS B VACANCY

PROPOSED OFFICE 5,780,000 SF

SUBLEASE AVAILABILITY

4.6%

20 bps

OFFICE 4Q23 SUBMARKET SNAPSHOT SOUTHEAST SUBURBAN

SES MARKET

4Q 2023

3Q 2023

4Q 2022

Inventory (SF)

33,965,892

34,204,853

Under Construction (SF)

10,050

Direct Vacancy (all Classes)

17.1%

18.9%

18.8%

Direct Vacancy – Class A

18.5%

19.9%

19.8%

Direct Vacancy – Class B

15.4%

17.8%

17.7%

Sublease Availability

1,815,472

1,629,264

1,803,904

Avg. Direct FSG Asking Rate (all Classes)

$28.23

$28.26

$28.21

Avg. Direct FSG Asking Rate – Class A

$31.11

$30.68

$30.78

Avg. Direct FSG Asking Rate – Class B

$23.58

$24.16

$24.02

Net Absorption – Current Qtr. (SF)

68,633

-118,808

-80,341

Net Absorption – YTD (SF)

-294,977

-709,657

-590,849

Leasing Activity – Current Qtr. (SF)

644,248

269,000

329,687

Leasing Activity – YTD (SF)

2,524,442

1,682,331

1,413,331

RENTAL RATE VS. VACANCY RATE

LEASING ACTIVITY VS. ABSORPTION

(1,000,000) (500,000) - 500,000 1,000,000 1,500,000

$25.00 $26.00 $27.00 $28.00 $29.00 $30.00

10.0% 14.0% 18.0% 22.0% 26.0%

Direct Gross Rental Rate

Overall Gross Rental Rate

Leasing Activity Net Absorption

Direct Vacancy

Overall Vacancy

OFFICE 4Q23 SUBMARKET SNAPSHOT SOUTHEAST SUBURBAN

KEY LEASE TRANSACTIONS Q4 2023

DATE LEASED

PROPERTY

TENANT

SIZE (SF)

DEAL TYPE

MICROMARKET

CARA STAMP Research Manager Tel: +1 303 218 3258 cara.stamp@cushwake.com MINH NGO Research Analyst Tel: +1 303 312 4293 minh.ngo@cushwake.com

Oct-23

160 Inverness Drive West

Undisclosed

27,200

New Lease

Inverness

Nov-23

7979 East Tufts Avenue

Allium US Holdings

21,300

New Lease

DTC

Oct-23

188 Inverness Drive West

Undisclosed

16,200

New Lease

Inverness

KEY SALES TRANSACTIONS YTD 2023

DATE SOLD

PROPERTY

BUYER | SELLER

SIZE (SF) SALE PRICE PRICE/SF

MICROMARKET

Nov-23

161 Inverness Drive West

Westside Invstmnt Prtnrs | Artis REIT 256,800

$16.5M $64/SF

Inverness

8089 Lincoln Street LLC | MVP 8089 Lincoln Land LLC

Sept-23 8089 South Lincoln Street

24,600

$6.1M $248/SF

Inverness

Jun-23 9777 Mount Pyramid Court Providence Partners LLC | Graham Street Realty

120,300

$9.9M $83/SF

Meridian

HISTORICAL SUBLEASE AVAILABILITY

1.6

1.4

1.2

0.8

0.6

SF (Millions)

0.4

0.2

2019 2020 2021

2022 2023

SUBMARKET SNAPSHOT CHERRY CREEK NORTH

OFFICE 4Q23

KEY TAKEAWAYS

Q4 2023 LEASING & ABSORPTION

Direct vacancy dropped on a QOQ basis to 3.0%, as the Cherry Creek North submarket maintained an impressively low vacancy rate, making it one of the tightest submarkets in the Denver metropolitan area. However, activity within the submarket has started to cool down as a result of the low vacancy and increasingly limited supply. Of the 358,500 sf of Class A space under construction in Cherry Creek North, only 15,000 sf remained available for pre-leasing, which demonstrates the demand for more supply in the submarket. The rising cost of capital has critically impacted the amount of office investment sales in the Denver Metro, resulting in no significant transaction during the quarter. Cherry Creek remained relatively active, with a two-building portfolio sale in Q1 2023 and a single building investment sale in Q2 2023. Rent growth in Cherry Creek continued to strengthen, with the average NNN asking rate increasing by nearly 6.6% since Q1 2022. Given the strong demand in the market, rental rates may continue to grow due to low vacancy rates and lack of supply.

5,700 4Q23 LARGEST LEASE 4,800 4Q23 LARGEST MOVE-OUT

8,500 4Q23 ABSORPTION 5,700 4Q23 LEASING ACTIVITY

(KSF) LARGEST 4Q22 LESE

2023 INVESTMENT ACTIVITY

ASKING RENTS

AVERAGE CAP RATE

TOTAL SALES VOLUME

LARGEST SALES TRANSACTION

AVG. DIRECT RENTS—NNN $41.85 (ALL CLASSES) AVG. DIRECT RENTS—NNN $48.54 ( CLASS A ) AVG. DIRECT RENTS—NNN $33.15 (CLASS B)

CONSTRUCTION ACTIVITY

Q4 2023

QOQ CHANGE

DIRECT VACANCY (ALL CLASSES)

3.0%

110 bps

UNDER CONSTRUCTION 358,500 SF

3.5%

40 bps

CLASS A VACANCY

2.2%

270 bps

CLASS B VACANCY

PROPOSED OFFICE 1,159,500 SF

SUBLEASE AVAILABILITY

17.9 KSF

INCREASE

SUBMARKET SNAPSHOT CHERRY CREEK NORTH

OFFICE 4Q23

CHERRY CREEK NORTH

4Q 2023

3Q 2023

4Q 2022

Inventory (SF)

1,367,618

Under Construction (SF)

358,520

218,020

289,479

Direct Vacancy (all Classes)

3.0%

4.1%

5.2%

Direct Vacancy – Class A

4.7%

3.5%

3.9%

Direct Vacancy – Class B

6.1%

2.2%

4.4%

Sublease Availability

17,949

5,687

15,026

Avg. NNN Asking Rate (all Classes)

$41.85

$42.66

$40.45

Avg. NNN Asking Rate – Class A

$48.54

$48.23

$46.21

Avg. NNN Asking Rate – Class B

$33.15

$35.43

$33.35

Net Absorption – Current Qtr. (SF)

(20,857)

8,487

28,305

Net Absorption – YTD (SF)

-8,427

55,090

46,603

Leasing Activity – Current Qtr. (SF)

27,752

5,687

45,253

Leasing Activity – YTD (SF)

154,678

96,817

91,130

HISTORICAL DIRECT VACANCY RATE

LEASING ACTIVITY VS. ABSORPTION

-50,000 -25,000 0 25,000 50,000 75,000

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

3-yr. Average : 5.9%

Leasing Activity Net Absorption

SUBMARKET SNAPSHOT CHERRY CREEK NORTH

OFFICE 4Q23

KEY LEASE TRANSACTIONS Q4 2023

DATE LEASED

PROPERTY

TENANT

SIZE (SF)

DEAL TYPE

LEASE TYPE

CARA STAMP Research Manager Tel: +1 303 218 3258 cara.stamp@cushwake.com MINH NGO Research Analyst Tel: +1 303 312 4293 Minh.ngo@cushwake.com

Oct-23

2401 East 2nd Avenue

TBD

5,700

Direct

New Lease

KEY SALES TRANSACTIONS YTD 2023 DATE SOLD PROPERTY BUYER | SELLER

SIZE (SF)

SALE PRICE

PRICE/SF

Mar-23

2nd & Josephine Portfolio

Altus Properties | Unico Properties

105,300

$54.0M

$531/SF

Apr-23

2702 E. 3rd Avenue

Lario Investments | Jerry Wrench

19,300

$12.5M

$647/SF

KEY UNDER CONSTRUCTION PROJECTS

OWNER / DEVELOPER

SIZE (SF)

PROPERTY

MAJOR TENANT(S)

EST. COMPLETION DATE

Schnitzer West

140,500

Oct-25

201 Fillmore Street

Antero Resources

59,700

Jan-24

300 N. University Boulevard Elevate Real Estate Services

Platte River Equity, Walker Dunlop

BMC Investments

99,300

Jan-24

255 Fillmore Street

Crusoe Energy

HISTORICAL SUBLEASE AVAILABILITY

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

4,000

2,000

2020

2021

2022

2023

MARKET SNAPSHOT COLORADO BLVD. & GLENDALE

OFFICE 4Q23

KEY TAKEAWAYS

4Q23 LEASING & ABSORPTION

Net absorption in the Colorado Blvd & Glendale submarket increased, reaching a positive 7,400 sf. However, the trend of downsizing and high sublease availabilities remained prevalent. Direct asking rates saw slight growth, as rates for all building classes increased by $0.67 psf QOQ to $29.10 psf. However, Class A rates recorded a decrease of $0.34, relative to other products. Direct vacancy across all building classes decreased by 10 bps. However, tenants continued to display hesitancy towards signing new leases, particularly for extended durations, and remain cautious about expanding their operations until market and economic conditions stabilize. The development pipeline of Colorado Blvd & Glendale remained dormant, as the focus of new office construction shifted to the urban core submarkets such as RiNo, the CBD, and Cherry Creek.

6,200 4Q23 LARGEST LEASE 14,100 4Q23 LARGEST MOVE-OUT

7,400 4Q23 ABSORPTION 33,300 4Q23 LEASING ACTIVITY

2023 INVESTMENT ACTIVITY

ASKING RENTS

TOTAL SALES TRANSACTION

LARGEST SALES TRANSACTION

AVERAGE CAP RATE

LEASING & ABSORPTION ACTIVITY

AVG. DIRECT RENTS—FSG $29.10 (ALL CLASSES) AVG. DIRECT RENTS—FSG $34.72 ( CLASS A )

Q4 2023 QOQ CHANGE

150,000

100,000

DIRECT VACANCY (ALL CLASSES)

19.2%

10 bps

50,000

CLASS A VACANCY CLASS B VACANCY

18.1%

220 bps

(50,000)

(100,000)

22.9%

10 bps

AVG. DIRECT RENTS—FSG

(150,000)

$28.50 (CLASS B)

SUBLEASE AVAILABILITY

4.8%

50 bps

Leasing Activity Net Absorption

MARKET SNAPSHOT COLORADO BLVD. & GLENDALE

OFFICE 4Q23

MARKET

4Q 2023

3Q 2023

4Q 2022

CARA STAMP Research Manager Tel: +1 303 218 3258 cara.stamp@cushwake.com MINH NGO Research Analyst Tel: +1 303 312 4293 Minh.ngo@cushwake.com

Inventory (SF)

5,353,525

Under Construction (SF)

Direct Vacancy (all Classes)

19.2%

19.1%

16.9%

Direct Vacancy – Class A

18.1%

15.9%

8.8%

Direct Vacancy – Class B

22.9%

23.0%

21.7%

Sublease Availability

258,325

286,071

250,108

Avg. Direct FSG Asking Rate (all Classes)

$29.10

$28.83

$28.30

Avg. Direct FSG Asking Rate – Class A

$34.72

$35.03

$35.16

Avg. FSG Asking Rate – Class B

$28.50

$28.43

$27.98

Net Absorption – Current Qtr. (SF)

7,381

-27,386

-16,379

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com. ©2023 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. cushmanwakefield.com

Net Absorption – YTD (SF)

-146,400

-153,781

-88,397

Leasing Activity – Current Qtr. (SF)

33,317

161,932

109,206

Leasing Activity – YTD (SF)

350,271

316,954

413,710

RENTAL RATE VS. VACANCY RATE

HISTORICAL SUBLEASE AVAILABILITY

350,000

$29.50

26.0%

300,000

$29.00

24.0%

250,000

$28.50

22.0%

$28.00

20.0%

200,000

$27.50

18.0%

150,000

$27.00

16.0%

100,000

$26.50

14.0%

50,000

$26.00

12.0%

Direct Avg. Asking Rate (FSG)

Direct Vacancy Rate

OFFICE 4Q23 SUBMARKET SNAPSHOT RiNo

KEY TAKEAWAYS

4Q23 LEASING & ABSORPTION

Net absorption in RiNo decreased by 143.9% QOQ to negative 15,900 sf, which brought the year-to-date total to negative 37,900 sf in 4Q 2023. RiNo remains a top performer in the Denver metro area in terms of commanding some of the highest asking rents, as there is an abundance of newer and more attractive Class A buildings, which is the predominant choice in the submarket. Direct asking rates saw relative stability, as rates for all building classes decreased by $0.18 psf QOQ to $49.50 psf. Class A showed a marginal decrease, while Class B direct asking rate increased by $0.53 psf QOQ. Direct vacancy across all building classes increased by 110 bps, as Class A and B recorded an uptick of 20 bps and 100 bps respectively. Xcel Energy signed one of the largest leases in the Denver Metro at 3500 Blake Street for 220,200 sf, which also marked one of the largest deals since 2016. The deal made up a majority of the leasing activity for 4Q 2023 in RiNo.

220,200 4Q23 LARGEST LEASE 15,700 4Q23 LARGEST MOVE-OUT

-15,900 3Q23 ABSORPTION 239,000 4Q23 LEASING ACTIVITY

2023 INVESTMENT ACTIVITY

ASKING RENTS

LARGEST SALES TRANSACTION

TOTAL SALES TRANSACTION

AVERAGE CAP RATE

LEASING & ABSORPTION ACTIVITY

AVG. DIRECT RENTS—FSG $49.50 (ALL CLASSES) AVG. DIRECT RENTS—FSG $50.57 ( CLASS A )

(150,000) (100,000) (50,000) - 50,000 100,000 150,000 200,000 250,000

Q4 2023 QOQ CHANGE

DIRECT VACANCY (ALL CLASSES)

34.7%

110 bps

CLASS A VACANCY CLASS B VACANCY

42.7%

20 bps

14.4%

100 bps

AVG. DIRECT RENTS—FSG $41.13 (CLASS B)

SUBLEASE AVAILABILITY

9.6%

90 bps

Leasing Activity Net Absorption

OFFICE 4Q23 SUBMARKET SNAPSHOT RiNo

MARKET

4Q 2023

3Q 2023

4Q 2022

CARA STAMP Research Manager Tel: +1 303 218 3258 cara.stamp@cushwake.com MINH NGO Research Analyst Tel: +1 303 312 4293 Minh.ngo@cushwake.com

Inventory (SF)

2,334,454

2,103,229

Under Construction (SF)

733,882

711,561

642,786

Direct Vacancy (all Classes)

34.7%

33.6%

25.5%

Direct Vacancy – Class A

42.7%

42.5%

28.2%

Direct Vacancy – Class B

14.4%

13.4%

22.4%

Sublease Availability

222,965

203,664

337,007

Avg. Direct FSG Asking Rate (all Classes)

$47.15

$49.50

$49.68

Avg. Direct FSG Asking Rate – Class A

$48.06

$50.57

$50.66

Avg. Direct FSG Asking Rate – Class B

$41.69

$41.13

$40.60

Net Absorption – Current Qtr. (SF)

-15,922

33,235

26,397

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com. ©2023 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. cushmanwakefield.com

Net Absorption – YTD (SF)

-37,947

-22,025

-32,414

Leasing Activity – Current Qtr. (SF)

239,005

35,170

108,982

Leasing Activity – YTD (SF)

371,950

132,945

374,657

RENTAL RATE VS. VACANCY RATE

HISTORICAL SUBLEASE AVAILABILITY

40.0%

$51.00

$49.00

35.0%

300,000

$47.00

30.0%

$45.00

200,000

25.0%

$43.00

$41.00

20.0%

$39.00

100,000

15.0%

$37.00

10.0%

$35.00

Direct Avg. Asking Rate (FSG)

Direct Vacancy Rate

OFFICE 4Q23 SUBMARKET SNAPSHOT NORTHWEST CORRIDOR

KEY TAKEAWAYS

4Q23 LEASING & ABSORPTION

While the trend of move-outs and downsizing remains notable, there was an improvement in net absorption within the Northwest Corridor, which increased to positive 6,400 sf in 4Q 2023, representing an improvement from negative 9,500 sf the previous quarter. Leasing activity increased by 56.5% QOQ, with just under 98,600 sf in new leases signed, a YOY decrease of 121.3%. Sublease availability decreased by 30 bps QOQ. Despite this, sublease availabilities still remained relatively high. A portion of the subleases are expected to convert into direct vacancy in the upcoming quarters, as tenants continue to explore their options. Direct vacancy fell to 19.7%, a 10-bps decrease in 4Q 2023. Class A vacancies contracted by 40 bps, while Class B vacancies increased by 60 bps QOQ. The development pipeline of Northwest Corridor remained dormant, as the focus of new office construction shifted to the urban core submarkets such as RiNo, the CBD, and Cherry Creek.

20,300 4Q23 LARGEST LEASE 11,400 4Q23 LARGEST MOVE-OUT

6,400 4Q23 ABSORPTION 98,600 4Q23 LEASING ACTIVITY

2023 INVESTMENT ACTIVITY

ASKING RENTS

LARGEST SALES TRANSACTION

TOTAL SALES TRANSACTION

AVERAGE CAP RATE

LEASING & ABSORPTION ACTIVITY

AVG. DIRECT RENTS—FSG $30.75 (ALL CLASSES) AVG. DIRECT RENTS—FSG $32.38 ( CLASS A )

150,000

Q4 2023 QOQ CHANGE

100,000

50,000

DIRECT VACANCY (ALL CLASSES)

19.7%

10 bps

CLASS A VACANCY CLASS B VACANCY

20.9%

40 bps

(50,000)

(100,000)

18.0%

60 bps

AVG. DIRECT RENTS—FSG

(150,000)

$26.92 (CLASS B)

SUBLEASE AVAILABILITY

6.2%

30 bps

Leasing Activity Net Absorption

OFFICE 4Q23 SUBMARKET SNAPSHOT NORTHWEST CORRIDOR

MARKET

4Q 2023

3Q 2023

4Q 2022

CARA STAMP Research Manager Tel: +1 303 218 3258 cara.stamp@cushwake.com MINH NGO Research Analyst Tel: +1 303 312 4293 Minh.ngo@cushwake.com

Inventory (SF)

8,859,216

Under Construction (SF)

101,200

Direct Vacancy (all Classes)

19.7%

19.8%

18.9%

Direct Vacancy – Class A

20.9%

21.3%

21.7%

Direct Vacancy – Class B

18.0%

17.4%

14.6%

Sublease Availability

548,921

571,626

339,408

Avg. Direct FSG Asking Rate (all Classes)

$30.75

$30.66

$30.92

Avg. Direct FSG Asking Rate – Class A

$32.38

$32.31

$33.00

Avg. FSG Asking Rate – Class B

$26.92

$26.91

$26.39

Net Absorption – Current Qtr. (SF)

6,412

-9,537

-218,863

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com. ©2023 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. cushmanwakefield.com

Net Absorption – YTD (SF)

-255,567

-261,979

-265,765

Leasing Activity – Current Qtr. (SF)

98,589

62,987

44,556

Leasing Activity – YTD (SF)

293,163

194,574

383,702

RENTAL RATE VS. VACANCY RATE

HISTORICAL SUBLEASE AVAILABILITY

700,000

22.0%

$28.00 $28.50 $29.00 $29.50 $30.00 $30.50 $31.00 $31.50 $32.00

600,000

20.0%

500,000

18.0%

400,000

16.0%

300,000

200,000

14.0%

100,000

12.0%

Direct Avg. Asking Rate (FSG)

Direct Vacancy Rate

OFFICE 4Q23 SUBMARKET SNAPSHOT BOULDER

KEY TAKEAWAYS

4Q23 LEASING & ABSORPTION

Leasing activity increased by 44.8% QOQ to 96,300 sf, with East Boulder being responsible for a majority of the activity in the submarket. Dicerna Pharmaceutical secured the largest lease of the fourth quarter 2023 with a deal at 4780 Pearl East Circle for 41,500 sf. Net absorption in Boulder recorded 20,700 in positive absorption, marking a huge improvement QOQ, which previously marked a 12-quarter record low of 203,000 in negative net absorption. Direct asking rates saw slight growth, as rates for all building classes increased by $0.11 psf QOQ to $38.89 psf. However, Class A direct asking rates decreased by a notable $2.08 psf QOQ to $45.59 psf. Three buildings totaling 369,500 sf remain under construction as of 4Q 2023, one of which is expected to deliver by early next year. There are currently two projects in the proposed development pipeline, but with the rising cost of capital, it is unclear when this project will break ground.

41,500 4Q23 LARGEST LEASE 22,400 4Q23 LARGEST MOVE-OUT

20,700 4Q23 ABSORPTION 96,300 4Q23 LEASING ACTIVITY

2023 INVESTMENT ACTIVITY

ASKING RENTS

TOTAL SALES TRANSACTION

LARGEST SALES TRANSACTION

AVERAGE CAP RATE

LEASING & ABSORPTION ACTIVITY

AVG. DIRECT RENTS—FSG $38.89 (ALL CLASSES) AVG. DIRECT RENTS—FSG $45.59 ( CLASS A )

Q4 2023 QOQ CHANGE

250,000

150,000

DIRECT VACANCY (ALL CLASSES)

16.7%

20 bps

50,000

CLASS A VACANCY CLASS B VACANCY

-50,000

18.5%

130 bps

-150,000

16.3%

120 bps

AVG. DIRECT RENTS—FSG

-250,000

$35.55 (CLASS B)

SUBLEASE AVAILABILITY

5.0%

20 bps

Leasing Activity Net Absorption

OFFICE 4Q23 SUBMARKET SNAPSHOT BOULDER

MARKET

4Q 2023

3Q 2023

4Q 2022

CARA STAMP Research Manager Tel: +1 303 218 3258 cara.stamp@cushwake.com MINH NGO Research Analyst Tel: +1 303 312 4293 Minh.ngo@cushwake.com

Inventory (SF)

5,711,483

5,750,227

Under Construction (SF)

369,478

313,478

Direct Vacancy (all Classes)

16.7%

16.9%

13.6%

Direct Vacancy – Class A

18.5%

17.2%

12.9%

Direct Vacancy – Class B

16.3%

17.5%

15.3%

Sublease Availability

191,438

203,827

194,200

Avg. Direct FSG Asking Rate (all Classes)

$38.89

$38.78

$39.88

Avg. Direct FSG Asking Rate – Class A

$45.59

$47.67

$49.81

Avg. FSG Asking Rate – Class B

$35.55

$33.94

$34.88

Net Absorption – Current Qtr. (SF)

20,666

-202,969

-50,749

Net Absorption – YTD (SF)

-144,741

-165,407

-65,531

Leasing Activity – Current Qtr. (SF)

96,252

66,490

92330

Leasing Activity – YTD (SF)

367,116

270,864

299,880

RENTAL RATE VS. VACANCY RATE

HISTORICAL SUBLEASE AVAILABILITY

250,000

$42.00

19.0%

$40.00

200,000

17.0%

$38.00

15.0%

150,000

13.0%

$36.00

11.0%

100,000

$34.00

9.0%

$32.00

50,000

7.0%

5.0%

$30.00

Direct Avg. Asking Rate (FSG)

Direct Vacancy Rate

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