Office Market Report / Q1 2015 Boulder Broomfield Market Overview Rates in this market continue their three year climb, now averaging $23.81/SF. Rates in Class A buildings now average $27.45/SF. Demand for space is continuing at a strong pace. The momemtum of 2014, when nearly 500,000 sf was absorbed, is continuing in the first quarter of 2015. Clearly this market has become a “Landlord’s market”, with vacancy dropping to 8.8%. Absorption 2007- 2014 Class A 4,000 Class B 3,500 Class A&B Top 5 Leases 1 Reed Group, Ltd. 73,262 SF 10355 Westmoor Dr Northwest Denver 2 Sun Microsystems 40,665 SF 500 Eldorado Blvd Broomfield County 3 I CAP 37,068 SF 385 Interlocken Crescent Broomfield County 4 Infocrossing, Inc. 35,477 SF 11800 Ridge Pky Broomfield County 5 Ball Corporation 31,248 SF 11080 Circle Point Dr. Northwest Denver 3,000 2,500 2,000 1,500 1,000 500 0 -500 2007 2008 2009 2010 2011 2012 2013 2014 Asking Rental Rate (Gross) Compared to Vacancy Vacancy Rent $24 16% $23 15% 14% $22 13% $21 12% $20 11% $19 10% $18 9% 2007 2008 2009 2010 2011 2012 2013 2014 Current Rental and Vacancy Rates Class A *The below arrows represent the change from previous quarter Class B Vacancy 8.8 % Rent $27.45 Class A & B Vacancy 7.9 % Rent $21.93 Vacancy 8.8 % Rent $23.81