DENVER, CO--Office deliveries are expected to pick up in Denver this year, causing a short-term pause in the metro’s recovery cycle, according to the 2008 National Office Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Absorption has outpaced new construction in each of the past four years, resulting in a nearly 600 basis point reduction in vacancy since 2004. Also included in the report is the firm’s annual National Office Index (NOI), a snapshot analysis that ranks 43 office markets based on a series of 12-month forward-looking supply and demand indicators. Denver moves down four places this year to No. 24. 
“A strong long-term economic outlook and healthy tenant demand will continue to lure investors to the Denver office market in 2008,” says Adam P. Christofferson, (photo at right) regional manager of Marcus & Millichap’s Denver office.
Following are some of the most significant aspects of the Denver Office Research Report:
· Local employers are expected to increase payrolls 1.1 percent in 2008 with the addition of 13,200 positions.
· Approximately 1 million square feet of new office space will be delivered in 2008.
· Vacancy is forecast to end the year at 15.5 percent.
· Asking rents are projected to gain 5.2 percent to $22.47 per square foot, while effective rents advance 4.9 percent to $18.60 per square foot.
· Buyers seeking long-term investments may want to target assets south of the metro where employment growth is particularly strong.
· Approximately 1 million square feet of new office space will be delivered in 2008.
· Vacancy is forecast to end the year at 15.5 percent.
· Asking rents are projected to gain 5.2 percent to $22.47 per square foot, while effective rents advance 4.9 percent to $18.60 per square foot.
· Buyers seeking long-term investments may want to target assets south of the metro where employment growth is particularly strong.
In the 2008 NOI, Seattle moved up three places to secure the No. 1 spot, surpassing last year’s leader New York City, which slipped to No. 2. Boston moved up two spots to No. 3, while San Francisco jumped 12 places to the No. 4 position. Los Angeles slipped two spots, coming in at No. 5.
For a copy of Marcus & Millichap’s National Office Report and the complete NOI rankings, visit http://www.marcusmillichap.com/.
Contact:
Stacey Corso
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
Public Relations Manager
Marcus & Millichap
2999 Oak Road
Suite 210
Walnut Creek, CA 94597
Office: 925.953.1716
Mobile: 415.672.6460
Fax: 925.953.1710
http://www.marcusmillichap.com/
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