Figures | Adaptive Spaces, Creating Resilience, Evolving Workforces, Future Cities

Denver Southeast Office Figures Q4 2022

January 12, 2023

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  • Positive 158,400 sq. ft. of direct net absorption was recorded in Q4 2022, the first quarter of positive activity for the submarket since Q1 2022. Year-to-date, net absorption totaled positive 216,000 sq. ft.
  • The Vectra Bank Headquarters was completed in Q4 2022, delivering 127,000 sq. ft. of space to the market and leaving the Southeast with no projects currently under construction. 
  • Leasing activity decreased 72.3% quarter-over-quarter to 139,000 sq. ft., while activity for the year totaled 1.5 million sq. ft., a decrease of 24.8%.
  • Sublease availability increased 5.9% quarter-over-quarter to 2.1 million sq. ft., a slower increase than the previous quarters, but still reaching a new peak.
  • Total vacancy dropped to 18.8% in Q4 2022, decreasing 40 bps quarter-over-quarter.
  • The average direct asking lease rate remained relatively stable, increasing 0.4% quarter-over-quarter to $27.91 per sq. ft. FSG.