Denver Office Figures Q4 2025

The Denver office market saw clearer signs of stabilization to end 2025, as net absorption turned positive for the first time since early 2022 and vacancy realized its first post-pandemic decline. The quarter’s net absorption totaled positive 203,000 sq. ft., helping to partially offset 2025’s total of negative 1.8 million sq. ft., which aligned with the recent five-year historical average. Total vacancy declined by a slight 20 basis points (bps) in Q4 to 28.3% but was still up 150 bps year-over-year.

More sublease space is reaching lease expiration and increasingly being offered on a direct basis from landlords, resulting in an 18.7% annual decline in sublease availability. Rolling four-quarter leasing activity declined 12.0% quarter-over-quarter to 4.4 million sq. ft., while Q4 activity alone was largely stable at 888,000 sq. ft.

Investment activity improved in Q4 2025, with 16 transactions at a total volume of $370 million compared to $220 million across six transactions in Q3. Office demand and vacancy is expected to further stabilize in 2026 as more tenants are solidifying their footprints through signing longer-term leases in tandem with fewer instances of downsizing or tenants vacating space. Owners with adequate capital are better positioned to retain and attract tenants as the market’s bifurcation increases due to persistent elevated vacancy and debt distress among more properties. Looking ahead, the spread in both rents and vacancy between Prime and Class A and Class B and C buildings will further widen as more tenants favor quality and experience as well as location when identifying new space.