Denver Office Market
Downsizes and consolidations offset the growth of other tenants as some move-ins were delayed from their expected occupancy date, but many submarkets also saw the total space on the market decrease. No new buildings completed in the first quarter as Steel House in the Downtown submarket was delayed until next quarter. Tenants continued to value higher quality space with better amenities over cheaper rates, and the Class A median rental rate grew faster from the prior quarter than any other product type, despite a larger increase in vacancy than Class C.
Denver Industrial Market
Closing the year, quarterly absorption recorded a healthy 1.1M SF and annual absorption to 2.9M SF. Vacancy decreased from the prior quarter again to 9.1%, indicative of the slowing speculative pipeline, and only increased year-over-year by 72 basis points. Leasing activity decreased slightly from the previous quarter but was still higher than either of the first two quarters of 2024.