Denver Retail Market Report

Surging population attracts retailers to key corridors. Denver’s largest population gain since 1999 drove record multifamily net absorption last year, with over 20,000 units leased. This growth should maintain tenant demand in residential submarkets like Cherry Creek and Aurora, where retail vacancy remains near all-time lows. Limited completions this year should keep vacancy tight and support modest rent gains. Downtown vacancy may continue declining after falling for a second straight year in 2024. In these areas, service-oriented tenants such as health care providers, salons and restaurants are expected to drive leasing at high-traffic shopping centers and mixed-use developments. Expanding Northeast and Southeast suburbs should see sustained demand from necessity-driven and experiential retailers, keeping vacancy near record lows. Though Southwestern cities like Littleton and Lakewood have lagged amid slower residential growth, grocery stores and fitness centers backfilling recently vacated spaces — spurred by affluent demographics — are set to strengthen fundamentals.