Denver Southeast Office Figures Q1 2026

The Southeast submarket extended its recovery in Q1 2026, recording 175,000 sq. ft. of positive net absorption, the second consecutive quarter of positive gains and the first back-to-back positive quarters since 2022. Total vacancy fell 60 basis points (bps) quarter-over-quarter to 26.3% in Q1 2026, followed by a decline of 40 basis points year-over-year. Rolling four-quarter leasing activity climbed to 1.4 million sq. ft., up from the 1.3 million sq. ft. recorded in Q4 2025, underscoring improved occupier demand within the submarket. Sublease availability dropped by 305,000 sq. ft. quarter-over-quarter to 1.4 million sq. ft., a four-year low, as larger availabilities expired and transitioned to a direct basis, removing a negative perception on the market’s leasable supply.

The average direct asking rent edged up to $29.34 per sq. ft. FSG, an increase of 1.1 % quarter-over-quarter, though still down 1.5% compared to a year ago. Class A rents climbed to $34.04 per sq. ft. FSG, increasing 2.8% quarter-over-quarter, and reflecting the intensifying flight-to-quality demand trend among occupiers. The development pipeline remained inactive for the thirteenth consecutive quarter, with no new groundbreakings anticipated given limited preleasing momentum. With supply-side pressures easing and demand broadening across micromarkets, the submarket’s recovery appears increasingly durable heading into the remainder of 2026.