Denver office market report

Q3 2023 

Denver’s office market exhibited resilience with a 33% increase in leasing activity year-over-year. Leasing activity has acclimated to the combination of economic uncertainty and the growing prevalence of hybrid work arrangements. Vacancy has climbed to its highest level on record as many companies have been downsizing their footprints as a cost-cutting measure. The elevated vacancy rates can be attributed to large tenants such as law offices, relocating to more efficient spaces and the delivery of new construction product. These mixed indicators reflect the complex dynamics and evolving nature of Denver's office market in response to changing work patterns and economic conditions.


Smaller lease space increasing in demand

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. The positive trajectory confirms a conservative approach to office leasing decisions.


Net absorption remains negative as the market struggles with occupancy

Net absorption declined 0.9% across the Denver market. Large tenants have began relocating to newer spaces as well as downsizing due to the hybrid work model to compensate for the number of employees returning to office.

+110 bps

Vacancy reaches an all-time high

Denver’s office market continues to face challenges as the vacancy rate remains elevated, increasing 110 basis points quarter-over-quarter, as new product becomes available. The office market is estimated to deliver 3.4m sf of product through 2025. As new product continues to deliver in LoDo and RiNo, the heart of the CBD will continue to see elevated vacancy rates as large tenants move to more efficient, new spaces. The vacancy rate is expected to remain elevated for the next few years.

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Get in-depth office market reports and insights from commercial real estate experts in the Greater Denver area. Avison Young advisors look at Denver commercial real estate activities and the latest Denver statistics to provide you expert market research on Denver's office properties.

Explore different topics like the latest office market pricing trends and analysis of Denver's current office real estate market conditions. Gain a better understanding of Denver’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Denver's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Denver.

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