A positive 261,000 square feet of total net absorption was posted in Denver in Q2 2024, a considerable improvement from the negative 473,000 square feet recorded in Q1 2024. A CBRE survey of the Denver office environment reports this marks the first quarter with positive total net absorption since Q1 2022.

Total vacancy increased 50 basis points (bps) quarter-over-quarter and 230 bps year-over-year to 23.9%. Direct vacancy also saw a 50 bps increase this quarter after rising to 20.9%.

Availability rose for the first time since Q3 2023, increasing by a slight 1.0% quarter-over-quarter to 5.8 million sq. ft.

The development pipeline fell to 627,000 square feet this quarter due to the delivery of seven buildings across multiple submarkets totaling 1.2 million square feet.

Leasing activity totaled 1.3 million square feet in Q2 2024, a 31.0% increase quarter-over-quarter and a 16.8% increase compared to the level of activity from a year ago.

The overall average direct asking rent posted an increase of 1.9% quarter-over-quarter.