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Market Report

Denver Office Market Report

2023 Investment Forecast

Leasing in Northern Suburbs Backstops Fundamentals;
Investor Diversity Highlights Metro’s Largest

Class A performance progresses in Northwestern Denver. Positive net absorption and notable vacancy compression last year have transformed Broomfield into one of the metro’s more desirable Class A office locales. Meanwhile, neighboring Northwest Denver also recorded positive upper-tier absorption in 2022, contributing to a vacancy rate below its pre-pandemic level. The minimal share of square footage slated for delivery in the Northwest corridor this year should further aid upper-tier fundamentals, with prospective tenants directed to the submarket’s existing Class A stock. Proximity to Boulder and Denver’s CBD will allow office users in these locales to pull talent from a larger workforce pool, while still offering employees higher-end amenities. Fundamentals on a marketwide scale, however, are not as positive. After the metro’s vacant stock expanded by more than two million square feet last year, economic headwinds contribute to availability reaching its highest point since at least 2007. Performance this year is especially challenged in the CBD, with companies continuing to show a preference for close-in suburbs.
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