July’s commercial real estate performance in Denver paints a nuanced picture across property types. Multifamily vacancy rates remain elevated, retail rents hold steady, and the office sector continues to face headwinds from shifting workplace trends. Here’s a closer look at how each segment is performing — and what it means for investors, owners, and tenants.
Multifamily: Vacancy Rate at 8.6%
Denver’s multifamily market is seeing an 8.6% vacancy rate as new developments continue to deliver units faster than absorption can keep pace. While demand for apartments remains strong in popular submarkets, elevated supply has kept overall vacancies higher than historical averages.
For owners, this means pricing strategies and lease incentives are key to maintaining occupancy. For tenants, it’s a market of opportunity with more choices and negotiable terms.
Retail: Average Rent at $23.53/SF
The retail sector is holding firm, with average market rents at $23.53/SF. Strong consumer spending and limited new retail construction have helped stabilize the sector. Well-located properties in high-traffic areas continue to attract tenants, with many seeking space for service-oriented businesses that cater to local neighborhoods.
For investors, this stability offers a reliable income stream. For tenants, securing leases in prime locations now may lock in favorable rates before any potential upward pressure.
Office: -3.7M SF Net Absorption
The office market recorded -3.7 million SF in net absorption over the past 12 months, reflecting ongoing adjustments to hybrid and remote work models. Many companies are rightsizing their footprints, prioritizing high-quality, amenity-rich buildings while vacating older, less efficient spaces.
Owners of office properties may need to explore creative repositioning strategies, while tenants are in a strong negotiating position to secure competitive rates and improved lease terms.
Corken + Company’s Perspective
The current landscape shows that each commercial sector is moving at its own pace, shaped by supply dynamics, tenant demand, and broader economic trends.
Whether you’re looking to lease, invest, or reposition your asset, understanding these shifts is essential to making informed decisions.
At Corken + Company, we deliver real estate solutions without limits. Our team helps clients navigate changing market conditions with strategies tailored to maximize value and minimize risk.
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