According to JLL’s latest research Chart of the Week, location, quality, and amenities continue to drive growth in the LoDo submarket.
• Tenants looking to expand operations target downtown: Through relocations, expansions, and new leases, LoDo has grown into a hot spot for office users. Since 2020, LoDo has outperformed the rest of the market in nearly all size ranges above 10,000 square feet. Tenants with the goal of growing their real estate footprint have identified this market as a prime target. Over this period, tech and business service firms accounted for nearly two-thirds of all growing footprints in LoDo.
• The LoDo effect: With some of the strongest office fundamentals in the market, LoDo offers a diverse supply with newly built Class A office space and historic buildings that shaped Denver as a hub for the rocky mountain region. Its central location around Union Station allows employees to access public transit and easily commute to and from work. The submarket not only has great connectivity to Denver but offers restaurants, shopping, and experiences you can’t find anywhere else, all important elements for attracting workers back to the office.
• What can we expect? Optimism remains strong for the direction LoDo is heading. Demand is high and there are no remaining office development sites of scale. Vacancy is suppressed compared to other markets and leasing activity is up. LoDo looks primed to outperform the wider market for years to come.
View the Denver Q2 Office report HERE.