Denver office market report

Q4 2024

The Denver office market in 2024 reflected the ongoing challenges within commercial real estate but also provided glimpses of recovery. While negative net absorption remained a hurdle, consistent sublet absorption each quarter highlighted growing interest in adaptable leasing solutions, a positive indicator amid high vacancy rates. Leasing activity demonstrated resilience with steady tenant demand, while the capital markets saw $850 million in office property sales. Although sales prices remained suppressed, the increasing presence of out-of-state buyers hinted at renewed investor confidence and market stabilization. Looking toward 2025, sustained leasing momentum and strategic capital investments will be crucial in overcoming vacancy challenges and paving the way for a long-term recovery in the Denver office sector.
 
$850m

Office sales activity suggests positive movements in 2025

During 2024, office property sale transactions amounted to $850 million, covering 4.7 million square feet of space. This sustained activity highlights growing investor confidence and signals a positive outlook for the office market’s long-term stability.

9.1 msf

Office leasing activity remains active

Total leasing activity for 2024 amounted to 9.1 million square feet. Leases ranging from 20k-50k led in demand, accounting for 1.5 msf of transacted volume. Among the standout transactions were deals by DISH Network, AT&T, and Ibotta, collectively totaling 419,221 sf.

6.2%

Total vacant sublease space declines

The total vacant sublease space has declined by 6.2% since the start of the year, driven by notable occupancy gains by Madwire Media, Redaptive, and ADP. This suggests growing tenant demand for flexible lease options and further signals Denver’s office market recovery.

Your source for the latest Denver office market reports

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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