Denver’s Coworking Sector Shows No Signs of Slowing Down
Coworking continues to change the global landscape of commercial real estate. According to Cushman & Wakefield’s newly released Denver Coworking 2.0 Report, this sector has provided substantial growth throughout the Denver Metro area over the past few years, with the Urban Core being at the forefront of coworking locations. From boutique operators to major giants like WeWork, the city continues to see new operations open, as Denver continues to evolve into a tech centric market.
According to the report, there are 36 coworking locations in Denver’s CBD and RiNo submarkets, occupying approximately 1.6 msf of office space and representing roughly 5 percent of CBD and RiNo office inventory.
Leasing By Year
Coworking growth peaked in 2018 with approximately 510,000 sf signed by coworking companies, of which ±93 percent of that activity was accounted for by WeWork. In 2019 CBD and RiNo recorded just south of 423,000 sf of leasing and sale activity, representing a 17 percent decrease from the highwater mark set in 2018. This comes as no surprise, as WeWorks’ leasing velocity has ended after a restructuring during the latter half of 2019. We expect WeWork’s footprint to continue to decrease as the company terminates some leased locations in order to re-align with their new company structure.
Number of Coworking Locations in the Urban Core
Coworking locations around the Urban Core can be found throughout all product types and classes. That said, 83 percent of coworking locations in the CBD and RiNo submarkets reside in Class A and B product.
RiNo: 12 locations
Midtown (CBD): 7 locations
LoDo (CBD): 6 locations
Uptown (CBD): 6 locations
Central Platte Valley: 3 locations
Ballpark: 2 locations
Coworking by Class
Class A: 44% | 16 Locations
Class B: 39% | 14 Locations
Class C: 17% | 6 Locations
To view and download the Denver Coworking 2.0 Report, please click here.