Denver Retail Market Report

Small-shop leasing rises despite anchor tenant departures. Denver’s vacancy edged up to a four-year high of 4.9 percent in June as bankrupt retailers contributed to over 600,000 square feet of net relinquishment in the first half of 2025. That said, move-outs were concentrated in large-format space. Vacancy at sub-10,000-square-foot properties held near 3 percent, and small-box leasing reached a one-year high in the second quarter, led by service and food users seeking cost-efficient spaces. Prime corridors such as Cherry Creek and Aurora remained particularly tight, recording vacancy at just 2.0 percent and 3.2 percent, respectively. With completions on track for the lowest annual total since at least 2007, competition for smaller floorplans should stay elevated despite broader economic pressures.