Denver office market report
Q4 2025
Denver’s office market recorded 4.5 million square feet of leasing activity in 2025, led by strong demand for smaller, flexible spaces between 5,000 and 20,000 square feet. Despite this activity, the market ended the year with negative net absorption of 585,000 square feet, reflecting slower tenant move-ins and softer overall demand. Since peaking in 2023, sublet availability has declined meaningfully, with inventory down 34% year over year, signaling a reduction in excess space and improving leasing conditions. On the investment side, office sales remained a bright spot, with total transaction volume reaching $100 million, which surpasses year-end totals since 2023 and representing a more than 40 percent year-over-year increase. Meanwhile, tenants continue to favor high-quality, well-located buildings, contributing to declining vacancy in submarkets such as Cherry Creek.
Mid-size footprints leases drive most of the demand
Denver’s office market saw over 4.5 million square feet of transactions throughout 2025. While the bulk of leasing was concentrated in mid-sized footprints, reflecting the ongoing shift toward flexible occupancy strategies
Net absorption lands negative to end 2025
Denver’s office market reported a negative absorption to close out 2025, with year-to-date net absorption totaling -585,000 square feet, reflecting a slowdown in tenant move-ins and softer overall demand. This period of adjustment also provides owners with an opportunity to re-lease, reconfigure, and invest in assets to better align with evolving tenant preferences
Full service asking rents remain elevated
Office FS asking rents continue to sit at elevated levels, showing little movement over the past year. The lack of change points to a market that is holding firm on pricing despite softer demand conditions.
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