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State of the Denver Office Space Market: Navigating Shifting Realities

The Denver office space market underwent a significant reshuffle in 2023, reflecting the complex dance between evolving work patterns, economic headwinds, and the city’s ongoing dynamism. Here’s a snapshot:

Key Trends:

  • Rising Vacancy Rates: Overall metro vacancy hit 23.0% in Q4 2023, a notable jump from 18.5% a year prior (Cushman & Wakefield). Downtown Denver saw an even starker rise, crossing 30% for the first time since 2000 (The Colorado Sun).
  • Downsizing & Subleasing: Companies, grappling with cost pressures and adapting to hybrid work models, are shedding square footage. This drove a surge in subleases, though the market recently dipped below 6 million sq. ft. (Avison Young US).
  • Rents Hold Steady: Despite rising vacancy, rents haven’t plummeted. Class A space even reached record highs in Q3 2023, driven by limited supply and premium features (JLL Research). However, expect increased negotiation for concessions like free rent (CBRE).
  • Shifting Dynamics: Smaller leasing deals (under 10,000 sq. ft.) are on the rise, indicating continued demand for flexible spaces, while subleases show slower growth (Newmark). This points to a cautious market adapting to new ways of working.

Opportunities & Challenges:

  • Landlords Adapting: Landlords are offering creative packages, including co-working spaces and amenities-rich environments, to attract tenants (Denver MarketBeats).
  • Flight to Quality: Premium, amenity-rich spaces in prime locations are faring better, while older, traditional offices face vacancy challenges (Avison Young US).
  • Suburban Shift: Suburban markets within the Denver metro area are seeing increased interest, driven by lower rents and easier access to parking (Denver Real Estate Market Reports).
  • Uncertainty Ahead: The economic outlook and long-term impact of hybrid work remain uncertain, casting shadows on future market predictions.

Overall, the Denver office space market is in a period of transition. While challenges exist, there are also signs of adaptation and resilience. As companies define their post-pandemic workplace strategies and the economy stabilizes, the market is likely to evolve further, presenting both challenges and opportunities for landlords and tenants alike.


I hope this report provides a helpful overview of the Denver office space market.

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Top Image by Chris from Pixabay