Denver office market report

Q3 2025

In Q3, Denver’s office market recorded 949,000 square feet of leasing activity, driven by strong demand for smaller, flexible spaces between 5,000 and 20,000 square feet. Tenants continue to favor high-quality buildings in accessible locations, with Cherry Creek posting its lowest vacancy on record. Sublease space remains a practical option as availability declines, while the city moves forward with office-to-residential conversions set to transform over 500,000 square feet of vacant space by 2027.
+948ksf   

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 Q3, with leases ranging from 5,000 to 19,000 square feet leading in demand and accounting for 52% of the transaction activity, totaling 949,865 square feet.
33.8%             

Flight to quality evident: Class A sublease levels significantly down

Class A and B assets have seen significant reductions in sublet availability since their peak in 2023. Specifically, Class A sublet space is down 33.8% while Class B has declined by 24.5%. This trend highlights a strong tenant preference for higher-quality, well-located office space.
5.4%

Cherry Creek reaches its lowest point in vacancy

In Q3 2025, Cherry Creek reached its lowest point of vacancy of 5.4%, underscoring its position as one of Denver’s most in-demand submarkets. Premium assets continue to attract significant tenant interest, and leasing activity remains active, with 254,000 sf of deals signed year-to-date. Construction also began on Milwaukee Place, a 94,000-sf office project that will further expand the submarket’s Class A inventory.

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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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