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Denver office leasing rises, signaling gradual stabilization

Last quarter, Denver logged 1.7M square feet of leasing activity, up 30.0% year over year, while tenants took in about 120,000 square feet more than they vacated.

Reported · Written up by our desk · Commercial

Denver’s office market is showing early signs of stabilization, though brokers say a full turnaround will take time, according to Bisnow citing Cushman & Wakefield and CBRE.

Last quarter, Denver reported its strongest net absorption and leasing activity since the first quarter of 2022. Total leasing activity reached 1.7M square feet, up 30.0% year over year, and office tenants took about 120,000 square feet more than they vacated.

Bisnow reports that tenants are also signing larger deals and pursuing longer terms than they have since the pandemic. CBRE’s Ryan Link said some tenants are “trading paper” for multiple 100K square foot spaces with 10-plus-year terms, including some 15-year deals.

The outlet added that the market impact of these newer larger deals has not yet fully appeared in reporting, and some deals have already been announced, though not all.

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