Driven by occupancy in newly constructed buildings, positive net absorption of 853,716 sq. ft. was recorded in Q2 2018, bringing year-to-date net absorption to over 1.1 million sq. ft.
The average direct asking lease rate increased to a record high of $27.66 per sq. ft. FSG, a 2.2% increase quarter-over-quarter.
Though still elevated, the direct vacancy rate decreased 8 bps quarter-over-quarter to 13.6%.
Investment activity in metro Denver reached $501.9 million in Q2 2018, a 5.3% increase year-over-year.
Notable new lease transactions in the quarter included 88,294 sq. ft. to Conga at ATRIA in the Northwest, 74,068 sq. ft. to Pax 8 at 5500 S Quebec Street in the Southeast, and 65,720 sq. ft. to Faegre Baker Daniels at 1144 Fifteenth in the Downtown submarket.