Submarket Snapshot_4Q2023_Office_Interactive

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