Denver Real Estate Market Reports

Denver Office Market

Large single tenants downsizing and consolidating into other existing locations dominated the third quarter of 2024, offsetting growth and weighing absorption back down into negative territory. One new building completed in the third quarter, the 80,000 SF 255 Fillmore Street building in Cherry Creek, and two existing buildings, the 207,000 SF Riverfront Festival Center in the Southwest submarket and the 83,000 SF Lansing Point in the Southeast Suburban, were sold and the new owners converted them to leasable office buildings. The drop in the median asking rental rate from the previous quarter is the result of the continuing trend of top-quality space being the first to lease, removing it from the calculations, rather than landlords decreasing asking rates.

Denver Industrial Market

Quarterly absorption recorded a robust 2.1M SF and brought year-to-date absorption out of the red to 1.7M SF. Vacancy decreased to 9.5%, the first drop in vacancy from the prior quarter since 1Q22 and indicative of the slowing pipeline of vacant speculative space. Leasing activity increased by more than 537,000 SF from the previous quarter.