Denver Southeast Office Figures Q3 2026

The Southeast submarket extended its recovery in Q3 2026, posting 40,000 sq. ft. of positive net absorption for a fourth consecutive quarterly gain, its longest positive run in more than five years. Rolling four-quarter absorption reached positive 270,000 sq. ft., a sharp turnaround from negative 614,000 sq. ft. a year ago. Total vacancy fell 70 bps quarter-over-quarter to 25.9%, its lowest level since Q2 2024, aided by owner-user acquisitions that removed three largely vacant buildings totaling 342,000 sq. ft. from the competitive inventory. Sublease availability fell 12.3% to 1.3 million sq. ft., its lowest level in more than five years, further tightening the supply of discounted space.

Leasing momentum accelerated as rolling four-quarter activity climbed 20.5% to 1.8 million sq. ft., the strongest total since 2022 and neck and neck with Downtown. Tenants are also committing to the submarket’s best locations, with Greenwood Plaza posting its strongest quarter of absorption since 2022 as relocations into Fiddler’s Green Circle took hold. The average direct asking rent held essentially flat at $29.55 per sq. ft. FSG, while Class A rents climbed 3.1% year-over-year to $34.10 per sq. ft. FSG, their highest level in more than five years. Capital markets continued to build, with year-to-date sales volume of $207 million already surpassing 2025’s full-year total. With supply shrinking, sublease space thinning and occupiers committing to quality buildings, the Southeast’s recovery continues to gain depth heading into 2027.