**Denver Office Leasing Activity Shows Signs of Recovery in Q1 2025**
CBRE has released its Q1 2025 Denver Downtown Office Figures, offering a mixed but cautiously optimistic view of the downtown office market.
While leasing activity declined during the quarter, it showed substantial improvement over the past 12 months. Rolling four-quarter leasing activity totaled 2.2 million square feet—an impressive 52.6% increase compared to the same period last year.
The overall vacancy rate rose slightly by 30 basis points from the previous quarter and increased by 230 basis points year over year, reaching a total of 35.3%.
A noteworthy development this quarter was the improvement in net absorption, with negative 86,000 square feet—significantly better than previous quarters.
In another positive sign, downtown sublease availability declined for the fourth straight quarter, indicating increased market stability as companies adapt to hybrid and remote work trends. Sublease availability dropped by 214,000 square feet, landing at 1.5 million square feet—a 12.4% decrease year over year.
These trends suggest that while challenges remain in the downtown office market, recovery efforts and adaptation strategies are beginning to yield tangible results.
