Provided below, by Newmark Grubb Knight Frank Research, are definitions of common terminology used in real estate market data.
The net change in physically occupied space over a specified period. Space that is leased, but not occupied, is considered vacant and therefore is not included in absorption.
Excellent location and accessibility; high-quality structure and management; new or competitive with new buildings; minimum size 100,000 SF (CBD) or 50,000 SF (suburbs); pro-forma rent rates in the upper 20 percent of the market sector's range; covered/structured parking; access to amenities. Note that "Class AA" trophy properties are included in this category.
Good location and access; structure showing very little obsolescence or deterioration; minimum size 50,000 SF (CBD) or 25,000 SF (suburbs); rent rates in the upper 50 percent of the market sector's range.
Buildings generally more than 15 years old; with rent rates in the lower 50 percent of the market sector's range; lacking the features and amenities of Classes A and B.
Rental Rate Index:
High, low and median rates are derived from a proprietary model that incorporates broker intelligence, current asking rates, completed lease transactions, and other key factors, which combine to characterize effective market rates.
- The high and low rates do not represent absolute highs and lows, but rather the midpoints of the upper and lower ranges.
- The median rental rate is the midpoint in the distribution of quoted rental rates, with half the rates falling below and half falling above the median. The median discounts high and low aberrations in rates, reporting more effectively than using rental rate averages.
- Ross does not 'roll up' divergent classification and product rents into homogenized category totals.
- Ross's quoted Office rental rates are full service gross.
Space added to the total market from newly delivered office buildings and from buildings converted from owner-occupied to multi-tenant status.
Total Square Feet:
The total inventory of metropolitan Denver's completed single- and multi-tenant office buildings of 20,000 square feet and larger. Owner-occupied, government, and medical buildings are excluded from the tabulations, as is retail space within the office buildings surveyed. A building is included when it receives a Certificate of Occupancy. All square footages are BOMA (Building Owners and Managers Association) rentable.
Physically unoccupied space in completed buildings, comprised of vacant direct and sublease space being marketed for lease and space under lease but not yet occupied.
The measure of vacant space as a percentage of the total inventory.