2018 Q3 Denver Office Market Report

Denver’s office market once again performed well during the past quarter with a decrease in vacancy, a small bump in asking rental rates, and positive absorption of more than 1.1 million square feet. Corporate relocation and expansion into the Denver market continues to create leasing demand and stabilize vacancy, as is evident by VF Corporation’s decision to relocate its global headquarters to Denver from North Carolina. More than 3 million square feet of office product is in the construction pipeline with several more projects scheduled to break ground during the fourth quarter. With solid fundamentals and robust office investment activity, confidence in Denver’s office market remains strong.

 Highlighted Trends

• As of August 2018, the Bureau of Labor Statistics indicated the estimated unemployment rate for the Metro Denver area at 3.3 percent.
• Metro Denver total employment increased by approximately 45,000 jobs between August 2017 and August 2018.
• Third quarter investment activity totaled more than $486 million throughout Metro Denver. Up 150% from Q3 2017.