Denver office market report

Denver's office market recorded 365,748 square feet of positive net absorption in Q2 2026, the first positive quarter since Q3 2025. Tenant demand continued to favor smaller and mid-sized space requirements, as the number of completed deals increased for the second consecutive quarter despite a 200,000 square foot decline in total leasing volume from the prior period, reflecting continued compression in average deal size. Several larger commitments, including new leases by UMB Bank, National Cattlemen’s Beef Association, Colorado Housing and Finance Authority, and Validus Energy, contributed to quarterly leasing momentum. Sublease availability declined further to 4.4 million square feet, extending its ongoing downward trend and supporting improvement in net absorption as shadow space continued to clear from the market.