Denver Downtown Office Figures Q2 2026

Downtown Denver's office market posted its most encouraging quarter in nearly two years, as net absorption swung positive and total vacancy recorded its first decline since Q3 2024. Total vacancy fell 20 bps quarter-over-quarter to 38.6%, while direct vacancy edged down 10 bps to 36.6%, driven by Class A move-ins outpacing continued space returns. Net absorption totaled 66,000 sq. ft., the first positive quarterly total since Q3 2024, representing a 122,000 sq. ft. gain from the prior quarter. Sublease availability ticked up 5.1% quarter-over-quarter to 1.1 million sq. ft. as new listings entered the market, though the figure remains down 26.5% year-over-year.

Rolling four-quarter leasing activity totaled 1.8 million sq. ft., essentially flat quarter-over-quarter though down 14.6% year-over-year. Meanwhile, DDA-backed proposed multifamily conversions continue to advance, positioning obsolete space for removal from inventory and shrinking the submarket’s effective supply. The average direct asking rent remained largely stable at $41.19 per sq. ft. FSG, a 2.0% decrease year-over-year. No notable investment sales closed during the quarter as the bid-ask standoff for Downtown product persists. With three of four micromarkets recording positive absorption and Class A vacancy falling to its lowest level in five quarters, the flight-to-quality dynamic continues to concentrate demand and the conversation around a forthcoming undersupply of new and prime Class A space continues to gain traction.