Denver Retail Market Report
Momentum Building After a Challenging Stretch;
Lower-Cost Areas Enticing Retailers
Improved leasing in the second quarter a sign of progress. Retail fundamentals in Denver were dampened by the health crisis like in much of the nation, but the metro seems to be finding its footing as 2021 advances. Net absorption came in at 226,000 square feet in the April through June period, ending a streak of six consecutive quarters when more space was vacated than leased. Economic clarity, job gains and the vaccine rollout generated greater demand for retail space in Denver, which should continue in the second half of this year. Tenants are most frequently leasing space in the Northwest and Central submarkets, with each area registering first half absorption totals exceeding 130,000 square feet. The Northwest corridor is attractive to retailers seeking comparatively lower rates, as the average asking rent here is about 20 percent below the market average.