Denver Retail Market Report

Demographic tailwinds moderate, as does construction. Population growth in Denver has cooled from its rapid pace during the 2010s. The metro is projected to expand by 0.5 percent this year after averaging 1.6 percent annually, well above the national rate. Hiring has similarly cooled, while a slowdown in local retail sales growth last year detracted from tenant expansion goals. These dynamics contributed to notable net space relinquishment in 2025, driven by suburban big-box move-outs such as Macy’s and Party City, alongside ongoing weakness downtown. That said, Denver’s retail inventory has increased by just 4.3 percent over the past decade, the lowest among major Rocky Mountain metros. The limited presence of newer product and a constrained development pipeline should help buffer a metrowide vacancy increase and keep it on par with the national rate, even as softer leasing activity emerged in the second half of 2025. Broader economic uncertainty may carry that pressure into this year.