Intelligent Investment

Denver 2026 U.S. Real Estate Market Outlook

January 14, 2026 5 Minute Read

Denver

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Executive Summary

Denver’s commercial real estate market enters 2026 with more stabilizing fundamentals and selective growth across sectors.

Office

Vacancy for Class A and prime buildings is expected to decline gradually, widening the gap with Class B/C properties. Tenants continue to prioritize high-quality space, while distressed assets drive sales and multifamily conversions. Construction remains limited and concentrated in Cherry Creek. Rent growth is projected at 1–2% on average metro-wide and up to 5% in top submarkets.

Industrial

Leasing conditions will improve as vacancy trends downward, particularly for big-box facilities, which may reach single-digits for the first time since 2022. Flight to quality will persist, with Class A absorbing the bulk of demand. Speculative development remains constrained, tightening supply and supporting owner-user purchases.

Multifamily

Deliveries will remain elevated through 2026 before dropping sharply in 2027. Renting remains far more affordable than owning, with a current $2,048 monthly cost gap. Legislative changes are enhancing renter protection, while easing interest rates will spur stronger sales activity.

Retail

Leasing fundamentals remain resilient despite softer consumer spending. Availability will stay near record lows due to limited new supply, with suburban grocery-anchored centers leading development. Downtown's recovery is seeing added momentum following 16th Street improvements.

Life Sciences

Vacancy will stabilize and trend lower as conversions slow and demand gradually rebounds among traditional users, which is complemented by rising activity among 'deep tech' companies, notably those in the quantum computing sector. Venture capital funding rebounded in 2025, signaling renewed growth optimism. 

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U.S. Real Estate Market Outlook 2026

January 14, 2026
Despite uncertainty, growth will continue for the U.S. commercial real estate market in 2026.
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