Submarket Snapshot_4Q2023_Office_Interactive

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