Denver Office Market Struggles Through Pandemic

The Denver office market has struggled through the pandemic. The latest stats from Savills’ third quarter report show that leasing activity has fallen by 1 million square feet, the lowest point in a decade, and 1 million square feet of sublease space has come to the market, bringing the total to 4.6 million square feet. In addition, the office vacancy rate in the market has increased to 21.6%, the highest in eight years.

“We see the availability rate as a more useful metric, that includes all sublease space and new buildings that are under construction,” Rick Schuham, director at the Denver office at Savills, tells GlobeSt.com. “That number for downtown Denver is 27.5% and that is what tenants care about. What are my choices? What can I negotiate a lease on? The vacancy number is relevant for both landlords and investors and that is why our competitors are tied to that metric.”