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Market Report

Denver Office Market Report

4Q 2021

Offices Begin to Welcome Back Some Tenants;
Investment Activity Continues to Steadily Improve

Companies commence reoccupying office space. The widespread release of vaccines in the spring and the related economic reopening paved the way for more employees to return to offices, lifting space demand. After 18 months of negative net absorption, the amount of occupied space increased in the second quarter. Organizations that took up large floor plans this year include Lockheed Martin and BP. Overall, leasing was most prevalent in suburban areas, particularly in the Colorado Boulevard-Glendale area as well as in North and Northeast Denver. The latter submarket was the only part of the metro where availability contracted on an annual basis. Vacancy is also below the market average in Aurora and Midtown, which has encouraged annual rent growth exceeding 5 percent in those areas.
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