The Denver metro office market took positive steps forward, toward stabilization in Q4 2024. Total net absorption of 167,000 square feet marked a considerable turnaround from previous quarters’ negative net absorption, while total vacancy was virtually unchanged at 24.9%. These findings are found in CBRE’s recently released report on the Q4 2024 Denver office market.

Sublease availability continued its downward trend, decreasing 4.2% year-over-year to 5.6 million square feet. 

Challenging fundamentals and capital markets conditions continued to impact the construction pipeline, with just over 600k sf under construction as of year-end 2024. 

Leasing activity totaled 1.2 million square feet, a 16.8% decrease quarter over quarter but a 4.9% increase year over year, with the technology sector leading the way. 

Investment activity in the Denver metro improved after a slight decline in Q3 2024. There were 19 transactions and a sales volume of $277.4 million, compared to 13 transactions and a sales volume of $152.2 million in Q3 2024. 

Overall, the market’s outlook remains cautiously optimistic with signs of positive economic momentum in 2025.