Denver’s commercial real estate market is navigating a landscape shaped by elevated interest rates, constrained construction pipelines, evolving tenant demand, and shifting economic drivers. At Corken + Company, we understand that smart investors and occupiers need clear, current insights to plan ahead.
Here’s our detailed mid-year 2025 snapshot across Denver’s Retail, Multifamily, and Office sectors.
Retail Market Overview
Denver’s retail market continues to hold steady with tight fundamentals despite broader economic concerns.
Key Stats:
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Vacancy Rate: 4.4%
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Availability Rate: 4.8%, near a historic low
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Market Asking Rent: $27.00/SF triple net (record high)
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Year-over-Year Rent Growth: 2.4%
Retail construction remains minimal at just 0.3% of total inventory, with under 420,000 SF in the pipeline. Most new builds are small, freestanding, build-to-suit projects often pre-leased to national chains.
Leasing trends highlight strength in smaller formats:
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Strip and neighborhood centers are in high demand.
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Experiential tenants, including pickleball clubs and boutique fitness studios, are expanding.
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Power centers face more vacancy, especially where bankruptcies left large spaces empty.
Investment environment:
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Annual volume at $1.2 billion, just below the 10-year average.
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Deals under $5 million dominate, largely funded by private buyers using all-cash 1031 exchanges.
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Cap rates have edged higher into the mid-5% range, with value-add assets trading even higher.
While high interest rates have cooled some investor appetite, Denver’s retail market remains balanced thanks to disciplined construction, steady demand, and a resilient consumer base .
Multifamily Market Overview
Denver’s multifamily sector is working through a significant supply wave but may be nearing an inflection point.
Key Stats:
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Vacancy Rate: 11.4%, more than double over four years
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Asking Rent: Average $1,850/month
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12-Month Rent Growth: -3.1%
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12-Month Deliveries: 15,000 new units
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Units Under Construction: 13,000
Renters now have abundant choice, and competition has driven widespread concessions. Many properties are offering up to 12 weeks of free rent on a one-year lease. About 41% of all apartments in the market currently advertise some form of incentive.
High-end (4 & 5 Star) properties are seeing the most absorption, with over 11,000 units leased in the past year, but also show the highest vacancy rates at 13%. Middle-tier (3 Star) units recorded negative absorption over the past 12 months as renters took advantage of promotions to move into newer or more luxurious options.
Despite elevated current deliveries, construction starts have plummeted. Only 9,000 units are forecasted to deliver in 2025, about half of 2024’s tally. This slowdown suggests relief from oversupply pressures is likely by late 2025 or early 2026.
Developers also continue to focus on transit-friendly corridors and high-demand nodes like RiNo, although financing challenges, regulatory hurdles, and high construction costs have cooled new project starts .
Office Market Overview
Denver’s office sector continues to adapt to evolving work patterns and a cautious investment environment.
Key Stats (Q2 2025):
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Vacancy Rate: 17.9%, above national average
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Year-over-Year Rent Change: -0.8%
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Availability Rate: 22.4%
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Under Construction: 2.6 million SF, largely pre-leased
Suburban markets continue to outperform downtown in terms of leasing velocity and stability. Large tenants remain cautious about committing to significant new footprints, often choosing to renew or right-size existing space rather than expand.
Leasing trends:
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Tenant demand is strongest for Class A spaces with high-end amenities, especially those with good transit access and suburban locations.
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Flight-to-quality remains a defining theme as employers seek to attract talent back to physical work environments.
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Lower-tier assets in older buildings are seeing longer marketing times and higher vacancy rates.
Investment market:
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High interest rates and tighter lending standards have cooled deal volume significantly compared to the peak of 2021–2022.
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Buyers are more selective, with a strong focus on well-leased, quality assets in desirable submarkets.
While challenges remain, Denver’s diverse economy and steady population growth support long-term demand. The market is expected to gradually stabilize as new supply moderates and tenant decision-making becomes more predictable.
Expert Perspective
Denver’s commercial real estate market reflects both resilience and recalibration in 2025. Investors and occupiers alike face a landscape of high borrowing costs and selective demand. Yet disciplined new construction, solid population fundamentals, and tenant adaptation are helping maintain overall market balance.
At Corken + Company, our commercial real estate expertise spans leasing, investment sales, property management, and strategic consulting. We’re here to help you navigate opportunities and challenges with clarity and confidence.
Contact Corken + Company
Whether you’re exploring acquisition opportunities, seeking strategic leasing advice, or evaluating your portfolio’s next move, Corken + Company offers Real Estate Solutions Without Limits.
Visit www.corken.co or call 303-858-8003 to start the conversation.
