In Q2 2024, the Denver office market saw a significant improvement with a positive net absorption of 261,000 square feet. This marks the first quarter since Q1 2022 to have a positive total net absorption according to CBRE’s survey of the local office environment.
The overall vacancy rate increased by 50 basis points (bps) from last quarter and by 230 bps compared to last year, reaching 23.9%. Direct vacancy also rose by an additional 50 bps this quarter after already being at an elevated level of20.9%.
Availability also saw an increase for the first time since Q3 in2013, rising slightly by1%to5.8 million square feet.
However,the development pipeline decreased this quarter,to627,000squarefeet,due tothe deliveryof seven buildings across multiple submarkets totaling1 .2million squarefeet.
Leasing activity was strong inQ22024,reachinga totalofl .3millionsquarefeet.This isanincreaseof31%fromlastquarterand16.S%comparedtoayearago.
Additionally,the average direct asking rent showed growth witha quarterly increase of l .9%.
Overall,the Denveroffice market has seenpositivegrowth,andthis trendisexpectedt ocontinueinthe coming quarters as demand for commercial space remains high.
