The commercial real estate landscape in Denver continues to evolve in mid-2025. While office leasing still faces headwinds, the multifamily sector is nearing stabilization, and retail remains the city’s most resilient asset class. At Corken + Company, we’re helping clients navigate each sector with clarity—tailoring our guidance to real-time data and long-view strategy.
Office: Challenges Remain, but Stabilization Is in Sight
The Denver office market is still working through elevated vacancy rates and shifting tenant preferences. Vacancy has reached a record high of 18.1%, with net absorption down 2.5 million square feet over the past year. Larger tenants continue to reevaluate space needs, pushing leasing activity toward smaller, more flexible footprints.
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Lease Sizes Down: Average footprints are 40% smaller than pre-pandemic averages
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Construction Slowdown: Just 1.1 million SF delivered so far this year
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CBD Struggles: Central Business District vacancy now exceeds 31%
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Sublease Surge: Many subleases are being offered at up to 30% below direct space rates
Despite the numbers, signs of a bottoming-out are forming. Move-outs are slowing, construction has pulled back significantly, and short-term renewals are keeping leasing volume afloat. Key submarkets like Cherry Creek continue to draw interest from tenants looking for Class A walkable environments with mixed-use flexibility.
Corken + Company Insight:
This is a tenant’s market. Whether you’re relocating, downsizing, or simply renegotiating terms, there’s meaningful opportunity in today’s leasing environment. Owners with well-located, updated assets can still attract stable tenants—if pricing and concessions are competitive.
Multifamily: Vacancy Peaks as Demand Rises
Denver’s multifamily sector is approaching an inflection point. Vacancy sits at 11.3%, more than double where it was four years ago. But the supply and demand gap is narrowing: new construction has started to decelerate, and spring leasing activity has kicked in to absorb excess inventory.
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12-Month Deliveries: 15,241 units
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12-Month Absorption: 8,401 units
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Rent Growth: Down 3.1% year-over-year
The oversupply is slowly correcting, and rent declines have moderated. As construction slows further and household formation picks back up, the market may begin to re-balance in the second half of 2025.
Corken + Company Insight:
Now is a smart time for tenants to secure favorable lease terms—and for investors to position themselves for long-term upside. If you own multifamily assets, we can help assess where you stand in the cycle and develop a strategy to retain tenants and improve NOI in a high-vacancy market.
Retail: The Most Resilient Sector in the Market
Retail continues to lead the commercial recovery. With just a 4.3% vacancy rate and a 2.1% annual rent growth, Denver’s retail spaces are in demand—especially well-located, small-format, and neighborhood-serving locations.
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12-Month Net Absorption: -302,000 SF
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New Deliveries: 431,000 SF
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Availability Rate: Near historic low of 4.7%
Even with a slight dip in absorption, constrained supply and steady consumer spending are helping retailers maintain occupancy. The limited pipeline of new retail construction is keeping availability tight, which is beginning to restrict options for expanding tenants.
Corken + Company Insight:
Retail landlords have more pricing power, and well-positioned properties continue to perform. If you’re a retail tenant, acting early and aligning with the right leasing partner is key. If you’re a landlord, now may be the time to revisit rent structures and update your tenant mix.
Final Takeaway
Denver’s commercial market is multi-speed. Office continues to reset, multifamily is bottoming out, and retail is holding strong. For property owners, tenants, and investors, the landscape requires sector-specific strategy and up-to-date insight.
At Corken + Company, we represent commercial clients across all asset types. Whether you’re leasing space, repositioning a property, or building your portfolio, our team provides the data-driven guidance and high-touch service to move forward with confidence.
Let’s talk about how these trends affect your goals.
Visit www.corken.co or call 303‑858‑8003
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