CBREs Q4 2024 Office and Industrial Figures for Denver Metro

The new 1,200,000 SF Pepsi facility is estimated to be complete Q2 2025. Rendering courtesy of PepsiCo.

CBRE has released its Q4 2024 Denver office and industrial figures. The Denver metro office market experienced a notable shift toward stabilization in Q4 2024. While Denver industrial total net absorption experienced its second-highest quarter of 2024.

Denver Office Figures Q4 2024

  • The Denver metro office market experienced a notable shift toward stabilization in Q4 2024. Positive total net absorption of 167,000 sq. ft. marked a considerable turnaround from previous quarters’ negative net absorption, while total vacancy was virtually unchanged at 24.9%.
  • Sublease availability continued its downward trend, decreasing 4.2% year-over-year to 5.6 million sq. ft. 
  • Challenging fundamentals and capital markets conditions continued to impact the construction pipeline, with just over 600,000 sq. ft. under construction as of year-end 2024.
  • Leasing activity totaled 1.2 million sq. ft., a 16.8% decrease quarter-over-quarter but a 4.9% increase year-over-year, with the technology sector leading the way.
  • Investment activity in Denver metro improved after a slight decline in Q3 2024, recording 19 transaction and a sales volume of $277.4 million compared to 13 transactions and a sales volume of $152.2 million in Q3 2024. 
  • Overall, the market’s outlook remains cautiously optimistic with signs of positive economic momentum in 2025.

Denver Industrial Figures Q4 2024

  • Total net absorption came in at positive 580,000 sq. ft. for Q4 2024, the second-highest quarter of the year.
  • The good news is that new construction completions tapered at a similar pace, decreasing 52.2% compared to year-end 2023. The amount of sq. ft. under construction had been decreasing since the final quarter of 2023, but saw an increase in Q4 2024 with one 1.7 million sq. ft. breaking ground. Of this total, 800,000 sq. ft is a build-to-suit project.
  • Despite consistent positive net absorption and declining construction, direct vacancy still increased 20 bps compared to the end of 2023. After peaking in Q2 2024, direct vacancy fell 10 bps in both Q3 and Q4 2024, ending the year at 7.6%. Asking rents remained stable in Q4, but rose 5.2% year-over-year.
  • Leasing activity did well to keep up with supply as 12.6 million sq. ft. of activity occurred in the year, with 65.8% of that total being new leases/expansions. This made 2024 the highest total for leasing activity since 2021, with the highlight of the year being BroadRange Logistics signing a new lease for 1.1 million sq. ft. in Q3. Q4 2024 had 2.8 million sq. ft. of total leasing activity.
  • Investment sales also had a strong year in 2024, surpassing 2023’s total volume by the third quarter. Q4 2024 was particularly active, with $644 million in total transactions, well above any previous quarter in the year.

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