Denver’s office market recorded its strongest quarter in four years as tenants occupied 119,700 more square feet than they vacated in Q2 2026. The gain marked the market’s best quarterly performance since Q1 2022, when Denver recorded nearly 282,000 square feet of positive net absorption, according to BisNow.
Leasing Gains Offset Large Move-Outs
The increase came despite Schlumberger giving up more than 50,000 square feet at the Denver Energy Center. New leases helped offset those losses, including Industrious’ 25,200-square-foot move into 2420 17th St.
Other notable Q2 move-ins included Merrick & Co. at Lincoln Crossing Tower I and Intrepid Potash at Republic Plaza.
Downsizing and delayed occupancies continue to weigh on leasing activity, slowing the pace of recovery.
Vacancy Remains Uneven
Denver’s overall office vacancy rate remained largely stable, with reports from major commercial real estate firms placing it between 26.6% and 28.7%.
CBRE recorded a slight decline in vacancy during the quarter, while Cushman & Wakefield reported a small increase. Conditions vary widely by submarket, with downtown Denver and River North facing the highest vacancy rates at 38.6% and 42.3%, respectively.
Cherry Creek remained one of the strongest areas, with 12.8% vacancy, while the Southeast market, including the Denver Tech Center, recorded 26.4%.
Recovery Depends on Sustained Demand
Analysts expect Denver’s office recovery to remain gradual, with demand concentrated in higher-quality buildings and select neighborhoods.
JLL said improving leasing activity, declining sublease inventory, and limited new supply suggest the market has moved past its steepest declines. However, continued improvement will depend on companies adding long-term occupancy rather than simply relocating within the existing office market.
