Denver Office Market Report
Corporate Restructuring Creates Near-Term Hurdles;
Company Relocations Brighten Outlook
Largest submarkets grapple with footprint reductions. Remote work arrangements and energy sector volatility over the past year have influenced some of Denver’s large tenants to lessen their office commitments. These decisions have increased the volume of lease expirations and sublet space on the market, elevating metro vacancy to its highest point since at least 2007. Moveouts have been most pronounced in downtown and Southeast Denver, submarkets that account for half of the metro’s inventory. With additional firms taking action to shrink their office commitments, availability in both locales will hold above 20 percent this year. In the first quarter, a Denver-based law firm signed on for 60,000-square-foot at downtown’s Block 162, with plans to vacate its current, larger space in the CBD. Similarly, DCP Midstream will relocate its downtown workforce to Denver Tech Center after subleasing 72,000 square feet this May.