The Denver industrial market closed the first quarter with the highest average asking rental rates on record across all industrial product types. Tenant demand remains steady as the pipeline continues to churn out new product. Absorption was hampered once again by tenant buildout delays, but planned occupancies assure strong absorption over the next several quarters. Denver remains the premier option for doing business in the Rocky Mountain Region.
Denver’s office market has experienced a sluggish start to 2023, with net absorption taking a sharp decline, and leasing activity remaining below historical averages. The region’s major employers are still grappling with their plans for returning to the office, as they navigate the ongoing effects of the pandemic. However, as time passes, it is increasingly apparent that the hybrid work model has become a permanent fixture in the workplace. To entice and retain employees back into the office, companies are prioritizing the implementation of comprehensive amenity packages and upgraded workspaces.
The Denver retail market is making a remarkable recovery from the pandemic, having experienced eight consecutive quarters of positive absorption. Although asking rates are steadily increasing, investor activity has slowed down at the beginning of the year. However, we anticipate a boost in investor and tenant confidence in the future, which will further strengthen an already thriving and resilient market.