Denver Southeast Office Figures Q2 2026

Momentum in the Southeast submarket carried into Q2 2026, with net absorption totaling positive 35,000 sq. ft., marking a third straight quarter of occupancy gains and the submarket's longest run of demand growth since 2022. Total vacancy was essentially unchanged quarter-over-quarter at 26.4%, it’s lowest reading since Q4 2024, and sits 60 basis points (bps) below where it ended in Q2 2025. Rolling four-quarter leasing activity reached 1.5 million sq. ft., ahead of the 1.4 million sq. ft. posted last quarter, as tenant demand continued to firm across the submarket. Sublease availability ticked up 76,000 sq. ft. from Q1 2026 to 1.5 million sq. ft., though it holds 14.4% below its year-ago level and remains near early-2021 lows.

Pricing also turned a corner. The average direct asking rent climbed to $29.50 per sq. ft. FSG, up 0.7% quarter-over-quarter and 0.3% year-over-year, the first annual increase in three quarters. Class A rents were effectively unchanged at $33.92 per sq. ft. FSG, still 2.0% ahead of a year ago, while Class B posted its strongest quarterly gain in over a year to $24.20 per sq. ft. FSG. On the supply side, the development pipeline logged a fourteenth consecutive quarter without any construction activity and none on the horizon given thin preleasing. While absorption moderated from the prior two quarters, gains across occupancy, pricing, and capital markets suggest the recovery looks increasingly durable heading into the second half of the year.