Denver Downtown Office Figures Q3 2026

After posting its first vacancy decline in seven quarters in Q2 2026, Downtown Denver’s office market saw vacancy shift upward in Q3 2026, driven largely by a single large move-out rather than a broad retreat in demand. Total vacancy rose 150 bps quarter-over-quarter to 40.1%, while direct vacancy increased 150 bps to 38.1%. Net absorption totaled negative 483,000 sq. ft., with TIAA’s 293,000 sq. ft. move-out at 1670 Broadway accounting for 61% of the loss. Even so, year-to-date net absorption remains 39% stronger than at this point in 2025. Sublease availability edged up 2.3% quarter-over-quarter to 1.1 million sq. ft. but remains down 22.4% year-over-year.

Rolling four-quarter leasing activity held essentially flat at 1.8 million sq. ft., and Class A buildings captured 87.5% of the quarter’s volume, led by Gusto’s 75,000 sq. ft. renewal/expansion at 1200 17th St. and RSM US’s 62,000 sq. ft. new lease at 1901 Lawrence St. The average direct asking rent eased slightly to $41.00 per sq. ft. FSG, a 2.2% decrease year-over-year. Investment activity resumed with the University of Colorado’s acquisition of 1050 17th St. With no new construction underway and the newest buildings continuing to capture the largest requirements, the conversation around a forthcoming undersupply of prime Class A space continues to gain traction.