Q1 2023: Denver Office Market Report

Tenant favorable market conditions will continue through 2023. Denver-metro vacancy continues to rise with vacancy sitting at 17 percent to end the first quarter. Perhaps surprisingly, rates continue to remain stable, even increasing in many submarkets. Downtown continues to be the hardest hit submarket with nearly 24 percent vacancy and approximately one million square feet of negative net absorption in 2022. There are a few well-performing segments in the market with new buildings and select submarkets continuing to see strong leasing activity activity, led by Cherry Creek submarket at 7 percent vacancy.