Denver Southeast Office Figures Q1 2023

April 14, 2023 10 Minute Read

Southeast Office

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- Positive 108,000 sq. ft. of direct net absorption was posted in Q1 2023, the second consecutive quarter of growth for the submarket. The lack of any large move outs was the catalyst to net absorption remaining positive.

- After the completion of Vectra Bank’s headquarters in Q4 2022, the office development pipeline has been tepid. Currently there are no projects under construction.

- Leasing activity decreased 8.4% quarter-over-quarter to 270,000 sq. ft., with Class A properties receiving 81.6% of total activity.

- Sublease availability increased 12.1% quarter-over-quarter to 2.1 million sq. ft., as multiple large blocks of additional space hit the market.

- Total vacancy dropped 50 bps to 18.3% and direct vacancy declined 30 bps to 15.4%.

- The average direct asking lease rate dropped slightly, decreasing 0.2% quarter-over-quarter to $27.92 per sq. ft. FSG.