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Market Report

Denver Office Market Report

2Q 2024

Lower Costs Attract Tech Companies,
Helping Combat Office Market Headwinds

Metro is not immune to hurdles faced nationwide. Hybrid work policies and a need to manage costs have stunted office demand from many firms. Large-scale supply additions in Denver are also placing upward pressure on vacancy, as completions rise above the 1 million-square-foot mark for the first time since 2021. The suburbs have exhibited stronger demand than the CBD of late, with the two areas entering April with 18.1 and 31.8 percent vacancy rates, respectively. Offices outside the urban center have benefited from companies downsizing footprints to save on costs and shorten commute times for employees during a period of labor shortage. This dynamic may continue to assist vacancy in areas like Aurora, where a 210-basis-point annual contraction was recorded in March 2024.

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