Denver Office Investment Forecast
Investors Prioritize The Mile High City;
Fundamentals Pass Recovery Inflection Point
Deliveries tumble as absorption trends turn corner. A substantial rise in space available for sublease hit Denver in the year following the onset of COVID-19, especially in core areas. Demand has returned entering 2022, however, with subleasing trends now well below their peaks, especially in the central submarkets. In recent months, Deloitte, Datadog and PNC Bank all signed leases to fill a combined 70,000 square feet downtown. The volume of space available for sublease should decline further this year as less new space is developed. Completions are down from pre-pandemic yearly totals, and much of the pipeline is build-to-suit or already leased. At the same time, firms re-entering offices will aid vacancy and rent downtown, as the space available for sublease drops, and outside the core, where fundamentals were relatively healthier during the downturn. In addition, policies to entice future arrivals could draw more coastal firms into Denver's office space.