Denver Office Vacancy Hits 36 Percent, Market Struggles
Vacancy Rates and Sublease Dynamics The downtown Denver office market is experiencing significant disruption, with vacancy rates climbing to 36.8% in Q2 2025. This surge is partly due to sublease trends, which represent a substantial portion of the total vacancies. Despite the continuous decrease in sublease availability, now around 1.4 million square feet, its impact on overall vacancy remains limited. Subleasing trends emphasize a demand for flexible workspace options, especially among companies adopting remote or hybrid work models. High-quality, newer subleased spaces are preferred by tenants looking for such flexibility. Amid these dynamics, the office vacancy in downtown Denver reached 35.3% at the end of Q1 2025, continuing to highlight the market's struggle to absorb vacant spaces. While sublease dynamics help stabilize vacancy rates by redistributing unused space, the downtown Denver office market still struggles with high vacancy levels. These trends highlight the challe...