Denver CRE Snapshot: Office Weakness, Retail Strength, and Multifamily Rebalancing
As of April 2025, Denver's commercial real estate (CRE) market tells three distinct stories: the office sector continues to face structural headwinds, retail maintains its resilient momentum, and the multifamily market recalibrates under the weight of oversupply.
At Corken + Company, we analyze every sector with precision and purpose, equipping our commercial clients with actionable insights and a plan to succeed—no matter the cycle. Our approach isn’t just about watching the data—it’s about interpreting what’s next and helping our clients stay one step ahead.
Office Market: High Vacancy and Strategic Opportunities
Denver’s office sector continues to struggle with structural changes that originated during the pandemic but now appear long-term. The current vacancy rate of 17.6% is among the highest in the country. Denver’s high-tech labor force has fully embraced hybrid and remote work models, shrinking company footprints and increasing sublease availability.
The average lease size has shrunk dramatically. Today’s leases average just 3,300 square feet, a 40% reduction from peak leasing trends in 2015. Tenants are targeting higher-quality spaces that deliver tangible value: energy efficiency, collaborative amenities, flexible meeting areas, and access to retail and dining.
Top Trends Shaping the Market:
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Tenants are pushing for shorter lease terms, increased improvement allowances, and move-in ready space.
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Iconic downtown properties like Republic Plaza and Wells Fargo Center are facing serious cash flow challenges.
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Buildings completed after 2020 are performing significantly better, with 575,000 SF of positive net absorption, compared to older assets that saw over 2.7M SF of negative net absorption in the past year.
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Submarkets like RiNo and Greenwood Village are attracting tenants seeking walkability and newer construction.
What Corken + Company Clients Are Doing: Our team is actively assisting office tenants in rightsizing, renegotiating lease terms, and identifying premium space at opportunistic rates. On the landlord side, we help reposition assets for future tenant demand. Investors are working with us to identify properties with value-add or repositioning potential. In today’s market, strategic adaptability is everything—and we lead the way.
Retail Market: Resilience and Rent Premiums
Retail continues to be the most resilient sector of Denver’s CRE landscape. With availability at a 10-year low of 5.0%and annual rent growth at 2.9%, the sector remains landlord-favorable, particularly in core areas like Cherry Creek, River North (RiNo), and Uptown.
Leasing activity is being driven by:
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National tenants acquiring suburban pad sites (e.g., Raising Cane’s, Dutch Bros)
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Experiential retail expanding in larger spaces (e.g., Epic Pickleball, SNÖBAHN, Lava Island)
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Luxury restaurants and boutique retail opening in high-end mixed-use projects (e.g., STK Steakhouse in Cherry Creek, leasing at $60/SF NNN)
Submarket Spotlight: Cherry Creek With rents averaging $46.50-$60.00/SF NNN, Cherry Creek is commanding nearly double the metro-wide average. Driven by adjacent luxury residential and office projects, Cherry Creek retail is thriving. Boutique fashion, beauty concepts, and curated dining experiences are dominating this corridor, positioning it as Denver’s most premium retail destination.
Corken + Company Advantage: Our retail specialists help tenants find competitive space, advise landlords on tenant mix, and partner with developers for successful ground-floor retail integration. Whether you’re leasing 2,000 SF or looking to redevelop an aging retail asset, our insights are rooted in real-time market knowledge.
Multifamily Market: Oversupply Dampens Rents, but Relief is in Sight
The Denver multifamily market has entered a transitional period. While 17,524 units were delivered in the past 12 months, only 9,143 units were absorbed, pushing overall vacancy to 11.3%—a 20-year high. Simultaneously, asking rents declined 3.2% year-over-year, creating challenges for owners and investors.
What’s Driving the Shift?
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Luxury (4 & 5 Star) units make up 75% of new deliveries and face the highest vacancy (13.8%)
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Middle-tier units are struggling most with affordability, slowing demand
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Developers are pausing new starts, which will ease pressure by late 2025
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Concessions are widespread: up to 8 weeks of free rent is now common
Downtown Denver Focus: Downtown continues to see the highest vacancy and steepest rent declines. With over 25% of the pipeline concentrated in this area, and leasing incentives widespread, property managers are leaning heavily on renewals and creative retention strategies.
Our Role at Corken + Company: We’re helping multifamily investors position assets for the long haul. This includes underwriting future value based on stabilization projections, identifying assets ripe for value-add strategies, and evaluating new acquisition opportunities as pricing adjusts. We also guide build-to-rent and lease-up strategies in under-supplied submarkets.
Final Word: Strategic Navigation Is Key in April 2025
Across the board, Denver’s commercial sectors are diverging—but that divergence creates opportunity.
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Office tenants and owners must rethink space planning and lease structure.
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Retail remains Denver’s most solid performer, with room for premium growth.
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Multifamily is correcting, creating a window for long-term acquisitions and repositioning.
At Corken + Company, we don’t just react—we anticipate. Our full-service commercial division is here to ensure your success in any environment. With decades of experience, local expertise, and a solutions-driven mindset, we’re the partner you want for your next investment, lease negotiation, or acquisition.
Let’s connect: www.corken.co | 303-858-8003
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