Demand for smaller office space is increasing in Denver - United States
Demand for smaller office space is increasing in Denver
Due to uncertainty surrounding hybrid work and return to office plans, a trend has emerged as tenants are taking less office space due to hybrid scenarios. Tenants who are reducing their footprint but occupying higher quality spaces are a significant part of this trend.
As of 2023, 1.1 million sf of office space, ranging from 5k-10k sf, has been in demand as seen in recent leasing activity. Leases ranging from 10k-20k sf follow closely in this trend with 873k sf office space leased since the start of the year.
Year-to-date leasing activity taking place between 5k-10k sf office spaces has increased 33% year-over-year. The positive trajectory confirms a conservative approach to office leasing decisions and overall improving conditions for the Denver market.