Denver office market report
Q1 2023 - Denver’s office market remains in line with peer cities regarding return-to-work and office economics. However an increase in sublease space, negative net absorption and stalled capital markets inevitably suggest turbulent times ahead. Denver’s diverse and highly educated workforce continue to bolster our economy, and companies are indicating that the quality-of-life Denver offers aligns with their companies’ values.
This quarter saw negative net absorption of 1.3 msf which is attributed to slowing leasing velocity with move-outs vastly outpacing move-ins and hybrid working arrangements reigning supreme.
Direct asking rent
Asking rents have plateaued this quarter which reflect the fact that landlords continue to offer a discretionary allowances in addition to more flexible lease terms to attract tenants. Overall annual rent growth was 4.7% with the majority of that growth incurred in the first half of 2022.
Vacancy continues to climb with 17.9% direct vacancy and 3.3% sublet vacancy across the market. This is a 4.0% increase in the past 12 months.
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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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