Denver Office Market Report

Residential nodes register strong performance. Suburban Denver has recorded four quarters in a row of accelerating net absorption, equating to more than 2.2 million square feet being absorbed over the past year preceding April. This demand shift from employers is an effort to entice staff back into the workplace by establishing offices closer to residences in areas of reduced density. As a result, North, Northeast and Northwest Denver all reported sub-11 percent vacancy in March. Availability in Northwest and Northeast Denver is at least 140 basis points below pre-pandemic levels, while strong leasing in Broomfield has led to a 300-basis-point retreat in vacancy since last September. At the same time, net absorption in the CBD has been positive for four quarters in a row, despite rising vacancy in the metro's most central areas.