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Denver Office Figures Q4 2022

January 9, 2023

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  • Leasing activity dipped in Q4 2022 with a little over 1.0 million sq. ft. of leases transacted, bringing the year-to-date total to 4.5 million sq. ft.
  • The office development pipeline stalled in Q4 2022 with no properties breaking ground, and only Vectra Bank’s 127,000-sq-ft. headquarters delivering in the Southeast submarket.
  • Positive net absorption of 23,300 sq. ft. in Q4 2022 brought the annual total to just negative 2,600 sq. ft., a considerable improvement from 2021’s total of negative 2.1 million sq. ft.
  • Annual sales volume totaled $2.5 billion, dipping only 2.7% year-over-year.
  • Total vacancy increased slightly, rising 60 basis points (bps) year-over-year to 20.0%.
  • Sublease availability increased 12.0% quarter-over-quarter and 39.9% year-over-year to 6.1 million sq. ft., breaking the record high of 5.4 million sq. ft. set last quarter.
  • The overall average direct asking lease rate experienced minimal change, decreasing 0.4% quarter-over-quarter and increasing 0.5% year-over-year to $31.95 per sq. ft. FSG.