Denver Office Figures Q1 2026

The Denver office market continued its gradual path toward stabilization in Q1 2026, but posting a consecutive quarter of positive net absorption remained challenging. At a moderate negative 159,000 sq. ft., net absorption declined from the positive 155,000 sq. ft. seen in Q4 2025, as the market continues to work through its extended supply and demand imbalance. Total vacancy edged up 20 basis points (bps) to 28.7% quarter-over-quarter and was 100 bps higher than a year earlier, though the rate of increase has slowed materially compared to prior quarters. Sublease availability continued its decline, falling 20.0% year-over-year to 4.1 million sq. ft. as more available spaces go direct upon lease expiration. Rolling four-quarter leasing activity was flat quarter-over-quarter at 5.0 million sq. ft., while Q1 activity decreased slightly to 1.3 million sq. ft.

Investment activity moderated slightly in Q1 2026, with $202 million in volume across seven transactions compared to $370 million across 16 transactions in Q4 2025. The market will see further stabilization in 2026, with subsiding vacancy due to the gradual demand recovery and limited supply of new construction along with several buildings slated for conversion. Preleasing of new construction in Cherry Creek remains robust, but the accelerated lease up of new buildings in Downtown as of late is beginning to stir the conversation of undersupply for new and prime Class A space.