The Denver office market showed signs of stabilization in the fourth quarter of 2024, according to a recent report released by CBRE. Net absorption totaled 167,000 square feet, a significant improvement from previous quarters’ negative net absorption. The total vacancy rate remained relatively unchanged at 24.9%.
Sublease availability also decreased by 4.2% year-over-year to reach just over 5 million square feet.
Construction activity was impacted by challenging market conditions and capital markets, with only around 600k sf under construction as of the end of the year.
Leasing activity saw a decrease quarter-over-quarter but an increase year-over-year with technology companies leading the way in leasing activity.
Investment activity improved after a slight decline in Q3 with $277.4 million worth of sales volume from nineteen transactions compared to $152.2 million from thirteen transactions in Q3.
Overall, there is cautious optimism for continued economic growth and positive momentum heading into 2025 for the Denver office market.
