Denver office market report

Q2 2025

In Q2, Denver’s office market saw over ±928,000 square feet in leasing, driven largely by demand for smaller, adaptable office spaces between ±5,000 and ±20,000 square feet. Tenants are showing a clear preference for high-quality space in accessible locations, with Southeast Suburban Denver emerging as a hotspot thanks to its strong amenity mix and major tenants like Spectrum and AECOM. The submarket has logged 2.6 million square feet in leasing activity since 2024, illustrating its rise as a tech-focused business hub. Meanwhile, with new development tapering off, sublease space is becoming a practical solution—especially as availability continues to decline. Supporting these positive signs are improved public safety downtown and a growing population that positions Metro Denver well for long-term office demand.
+928ksf   

Mid-size leases drive most of the demand

As businesses embrace hybrid work as a long-term strategy, many are choosing to downsize their office footprints to better align with evolving workplace needs. This shift was clear in Q2, with leases ranging from 5,000 to 19,000 square feet leading in demand and accounting for 65% of the transaction activity, totaling 928,381 square feet.
14.3%             

Sublease availability decreases year-over-year

Sublet availability has declined 14.3% year-over-year, driven by major tenants like Chevron and NFT Logistics taking up previously vacant space. This trend has contributed to strengthening the office market as demand for subleases continues to grow.
1.7 msf

Signs of stabilization amidst negative absorption

Although Denver’s office market posted modest negative absorption in Q2, stabilization signs are evident, with a slowdown in tenant vacancies, limited new supply pressure, and steady leasing activity. Looking ahead, mid-sized deal momentum suggests a potential second-half turnaround.

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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.

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