Denver office market report

Q4 2022 - Denver's office market recovery continues to be in line with peer cities regarding return to work. The area continues to attract professional and business service jobs, which have increased by 15.9% since the pandemic. Of the 332,500 open positions currently posted onine, only 12% are for remote oppotunities.

With financing becoming increasing difficult, office assets continued to trade at an average $290 psf through 2022. Denver's diverse and highly educted workforce continues to bolster our economy, and companies are indicating that the quality-of-life found in Denver aligns with their companies' values. 

103 msf

Inventory

With limited buildings delivered this year so far, Denver’s inventory rose slightly by 491K sf in 2022. There is currently 1.56 million sf of new office product scheduled for delivery in 2023 and will be something we continue to monitor. 

858k sf

Net absorption

This quarter saw positive net absorption of 188K which is primarily attributed to the Southeast Suburban submarket having a strong quarter. However, for the full year of 2022, Denver saw negative 858K sf in net absorption with overall move-outs vastly outpacing move-ins and hybrid working arrangements reigning supreme. 

$31.74 psf/ FS

Direct asking rent

Despite the high vacancy, asking rents have risen by 4.2% since Q4 2021. Yet landlords continue to offer a discretionary allowance in addition to more flexible lease terms to attract tenants. 

20.9%

Vacancy

Vacancy continues to remain at record highs with 17.6% direct vacancy and 3.3% sublet vacancy across the market. 

$2.1B

Investment sales

2022 transaction volume totals $2.1 billion with average price per sf of $290, indicating Denver office values holding steady for now. However, the bulk of transactions occurred in the first half of the year. By end of October, capital markets screeched to a halt with no significant transactions occurring in November or December. 

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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.

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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