CBD.LODO.Platte

Office Market Report / Q1 2015
CBD.LODO.Platte
Market Overview
Rents are climbing, hitting a new high at $32.25/SF. New buildings are
leasing at $40-$45/SF, as downtown continues to demonstrate remarkable
strength.
In 2014, demand for space exceeded 900,000 sf. So far in 2015, demand
has fallen to a much slower pace, with only 100,000 SF of absorption. A
“wait and see” attitude prevails on the impact of oil prices.
Vacancy is under 11%, and negotiating leverage is difficult for tenants.
Class B vacancy has dropped to 8%.
Absorption 2007- 2014
Class A
Class B
Class A&B
Top 5 Leases
4,000
1,400
3,500
1,200
3,000
1,000
2,500
800
1
Transamerica Corp
99,072 SF
1801 California St
CBD
2
Anadarko
65,846 SF
1001 17th St
CBD
3
Molson Coors Brewing Company
53,872 SF
1801 California St
CBD
4
Ardent Mills
52,030 SF
1875 Lawrence St
CBD
5
Venoco, Inc.
51,235 SF
370 17th St
CBD
2,000
600
400
1,500
200
1,000
0
500
-200
0
-400
-500
-600
2007
2008
2008
2009
2009
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
2015
Asking Rental Rate (Gross) Compared to Vacancy
Vacancy
$33
17%
Rent
$32
16%
$31
15%
$30
14%
$29
13%
$28
12%
$27
11%
$26
10%
$25
9%
2008
2009
2010
2011
2012
2013
2014
2015
Current Rental and Vacancy Rates
Class A
*The below arrows represent the change from previous quarter
Class B
Vacancy
12 .1%
Rent
$33.98
Class A & B
Vacancy
8.2%
Rent
$27.54
Vacancy
10.8%
Rent
$32.25