Denver Commercial Real Estate Market Update | April 2025
At Corken + Company, we help clients navigate every facet of real estate—from luxury residential to commercial investments. As Q2 2025 begins, Denver’s commercial landscape continues to evolve across office, multifamily, and retail sectors. Here’s a breakdown of the latest data and what it means for investors, landlords, and tenants alike.
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Office Market: Resilience Amid High Vacancy
Denver’s office market remains in flux, with a vacancy rate reaching 17.8%, a record high. Net absorption over the past 12 months is still negative at -2.1 million square feet, but early signs of stabilization are emerging. Leasing volume has steadied, and companies are showing signs of adapting to right-sized office footprints.
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Concessions remain high, giving tenants leverage.
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New deliveries are minimal: only 1.1M SF added over the past year.
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The Downtown CBD leads vacancy at 31%, though move-outs are slowing.
Despite elevated vacancy, asking rents have held at an average of $30.16/SF, growing 1.1% year-over-year. Cherry Creek remains a standout submarket, with premier spaces leasing as high as $75/SF NNN—a benchmark for the metro.
📌 Insight: This is still a tenant’s market, but opportunities exist in well-located or renovated assets with stabilized cash flow potential.
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Multifamily Market: Vacancy Peaking, Rent Growth Resetting
Denver’s multifamily market is digesting a historic supply wave, with 16,139 units delivered over the past year. Vacancy stands at 11.5%, more than double pre-pandemic levels, but demand is increasing—8,400 units were absorbed, beating the 5-year average by 30%.
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Average rent fell -2.9% YoY to $1,855/month across the metro.
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41% of properties are offering concessions, including up to 12 weeks free rent.
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New construction starts are declining sharply, with 11,829 units currently under construction, signaling relief ahead.
📌 Insight: Investors should focus on 3-star assets or stabilized properties in low-supply submarkets, where concessions are less steep and NOI is more predictable.
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Retail Market: Tight Fundamentals, Strong Demand
Denver’s retail sector continues to outperform. Despite broader economic concerns, the market boasts the lowest vacancy rate of any asset class at 4.2%. Absorption remains slightly negative, but demand is high, and new construction is limited to 381K SF—just 0.2% of inventory.
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Rents have grown 2.5% YoY, reaching a record $27/SF triple net.
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Neighborhood and strip centers are outperforming, with many spaces pre-leased.
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Cherry Creek leads with $46.50/SF rents, and top leases hit $60/SF.
Retail is evolving quickly with increased demand from experiential users (e.g., pickleball clubs, boutique gyms, and high-end dining). Meanwhile, power centers and CBD-adjacent storefronts are still lagging behind due to large-format tenant bankruptcies and office-adjacent vacancies.
📌 Insight: Retail investors should focus on strip and neighborhood centers or mixed-use retail under high-density residential developments.
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Corken + Company Takeaway
Whether you’re navigating a repositioning strategy for your office asset, investing in stabilized multifamily, or pursuing triple-net retail deals, 2025 presents opportunities—but timing and product type are key. Market segmentation is growing, and real-time insight is essential.
Let our team help you find your advantage in a shifting market.
📞 Call 303-858-8003 or visit www.corken.co to explore opportunities with Denver’s trusted commercial real estate experts.
