Denver Office Market Report Q2 2019
In a major turnabout, core Downtown Denver submarkets took over the first, second and third strongest rent growth performances by mid-2019, after initially accelerating last year. Tech demand has been more than robust, and spec development not withstanding, that momentum doesn't appear to be dissipating. The metro area, and in particular the downtown area, have become an increasing nexus for the tech sector, including a host of high profile west coast tech firms. Several larger firms that initially started out in smaller coworking spaces (such as Slack and Facebook) have since announced major permanent leases—a testament to the ability of tech companies to find talent despite a tight labor market.
Speculative development has ramped up, and tenants considering major expansions or relocations have far more options today than they did a few years ago. Still, conditions remain well-controlled relative to historical averages (and exceptionally tight for low-to mid-tier office space). Roughly 60 percent of what was underway in mid 2019 was in core downtown submarkets: The CBD, LoDo, or Platte River, the latter of which includes includes the RiNo neighborhood.