Report | Denver Energy Outlook - 2015
Denver's CBD has traditionally been driven by the energy sector. That's a fact that isn't likely to change anytime soon—given one-third of CBD occupiers are energy-related or support-role providers.
However, the market has seen a recent shift with nearly 20 percent of energy sector space put up for sublease being re-absorbed (since January 2015) as the cost of oil fell worldwide.
Midstream companies like Meritage Midstream and ARB Midstream have been the best to adapt to changing local conditions, which include the number of operational rigs market-wide falling by more than half since the start of 2015. Only 30 operational rigs are actually present in Colorado today.
Lower leasing activity is expected to continue into 2016, with the price of WTI expected to remain at around $51 per barrel—meaning traditional energy users will likely dial back spacing demands even further.
What does this mean for both tenants and landlords in the local energy sector? Download Denver's 2015 Energy Outlook to learn more.
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