Good projections are being enjoyed in the region of Denver, as its commercial real estate ended with a strong finish last year.
According to the recent data released by CBRE as posted by the Denver Post, "Denver's industrial real estate market posted its 23rd consecutive quarter of positive leasing activity to close out 2015, as the cost of renting space surpassed highs set before the recession."
Due to the high demand and low supply in the Denver area, the average industrial asking lease rate rose to $7.23 per square foot, and had a triple net during the fourth quarter, which was up 4.2 percent year over year. Also, a noted 2.6 percent from the third quarter was seen in the region.
Meanwhile, Jeremy Ballenger, a Vice President of the CBRE Industrial Investment Properties, said, "It was a pretty incredible year, and really, the headline for 2015 was continued improvement in the market from a base that was near or at record levels already."
However, it wasn't always like this for Denver. It has been reported in the past by Gazette that Denver also struggled with pricey properties, and that the real estate market also experienced its own share of volatile and unstable moments, but that it would rebound in 2016.
The post further added that the commercial real estate is pretty weak from recovering due to the past recession. However, forecasts also indicated that it would gain its momentum by 2016. Moreover, as the Colorado Springs economy attains stability, investors can even expand their horizons, outside of Denver and in other market segments as well.
Furthermore, Quantum's president Dale Stamp, added, "Everyone we talk to, and all our clients, everybody is much, much more confident in the economy as well as in their business. The general health of people's mindsets is much, much brighter than in years past. We're not at the supersonic speed of up north, that's for sure, but there are some ripple effects taking place."
Meanwhile, Alex Hammerstein, Senior Vice President of CBRE's Occupier Services Group further explained that, "The attractiveness of Denver's labor market continues to drive demand for office space, and we're seeing more out-of-state interest, particularly from the tech industry, than we've seen in 20 years."
