The climate for tenants in Denver Office Space is complicated, and while prices for a particular building may go up or down, the level of complexity continues to go up and up and up.
But are the actual rents going up? The answer varies, or course, by the area in each city and suburb, and within those by the neighborhood and even the block.
There's no question that those who set the rents want them to go up. We were reminded of that recently reading this story from a site that covers the market for "business centers." In the story, the writer lists Denver as one of the cities seeing an increase in occupancy in commercial buildings.
The story also lists Denver as one of those leading the nation in suburban market absorption.
Luckily for tenants, the story says that nationwide, the average rents may not climb for business centers all that much this year.
Is now the time for your business center to consider rent increases? Perhaps not. After a small increase in the first quarter, both Central Business District and suburban rents drifted lower in the most recent three-month period. Taking the various economic factors and real estate fundamentals in total, widespread rent increases are unlikely to occur this year and may not materialize until well into 2012.
But as we said at the start, it's more likely the prices will go up in Denver than in other places around the country. Even if they don't, the complexity will go up, which is why we recommend that you get a tenant representative. If you want to talk to someone about how tenant representation works, please contact us.