Winter is coming!
Denver got a bit of a taste of things to come this week. A cold blast of wet and snowy weather hit some foothills locations with over 10 inches of snow on the last day of summer! Areas like Highlands Ranch and Monument Hill got significant accumulations as well. Time to dust off the snowboard and skis!
Prepare for a freeze!
Now is the time to get the garden ready for the first freeze and schedule your irrigation system for a blowout if you haven't done it already. You may be mowing for the last time this weekend before you put the lawnmower and other power tools up for the winter. Remember to use a gas stabilizer if you can't run the fuel completely out of your gas equipment as the consequenses can be frustrating and costly next spring.
Fertilize and weed before the next snow.
Keep an eye on the forecast and get out and fertilize just before it hits and you will help your lawn greatly for the next season. A weed and feed can also work well as the tempratures get lower and the burst of growth weeds have after the sun comes out will help make the absorption increase and reduce the crop of weeds.
Denver Office Space Vacancy Forecast
September 22, 2009
Current Office Vacancy Rate
According to today's statistics compiled by Costar Group the Denver Metro area office market has a direct vacancy rate of 15%. In real terms that means there is over 22 million square feet of office space sitting vacant in the Denver Aurora Broomfield market.
Denver Office Space absorption is negative
Current Net absorption is shown to be negative 1%, so the forecast is for office vacancy to increase to 19% of the space within the next two years. Accordingly it is a great time to negotiate your existing lease renewal as landlords are increasingly reluctant to lose tenants.
Office Lease Rates show declines
A recent article in The Denver Post showed that many major tenants are exploring the option of relocation to the Southeast part of the Denver metro area. This is perceived to be a testing of the rates many central business district buildings are advertising. Landlords are increasingly willing to accept more of the risk of operating expenses in order to entice tenants to lease or renew existing leases and thus are offering more gross or modified gross terms.
My opinion of the Denver Office Space Market
As one drives the highyways and byways of the Denver Metro area you see for lease signs on virtually every office building and commercial project. As time lengthens and this space remains vacant it is more likely that these buildings will become foreclosed or REO Properties. This is a challenging market for landlords and property owners and an opportunity for buyers and tenants.
I took a client to lunch at Bubba Gump at 1437 California in Denver Today. The American Association of Petroleum Geologists are having a convention ath the Convention Center. No surprise the place was packed at 12:00. We got seated right away and ordered. After about 35 minutes the manager, Randy Phelps came to our table apologized for the delay and comped our meals! We got our food within 5 more minutes. The Baja Shrimp Grilled Tacos and a BBQ pork sandwich. I will be back.
Another bad day at the office? This weekend a gust of wind collapsed this office building under construction in Westminster, Colorado.
I have been selling and representing buyers of commercial real estate for over thirty years and in Denver Colorado and the surrounding area for 20 years. I am constantly amazed that agents don't return calls! When I am looking for properties that may cost millions and cannot get any information from the listing broker I just go on to the next property.
In today's cutting edge marketing environment the old times are left behind. As more information gets to be nationally available those brokers who do not respond rapidly are left in the dust. I guess those
old timers who believe they control the information don't have the time to provide real customer service. I bet the retail center space is just moving so fast they can't take time to call any prospect.
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