CBRE has released its Q1 2026 report on Denver’s office and industrial markets. The industrial sector continued to show strong fundamentals, albeit with some modest slowing. Meanwhile, the office market remained on a gradual path toward stabilization, posting another consecutive quarter of positive net absorption, though overall conditions are still challenging.
- At a moderate negative 159,000 sq. ft., net absorption declined from the positive 155,000 sq. ft. seen in Q4 2025, as the market continues to work through its extended supply and demand imbalance.
- Total vacancy edged up 20 basis points (bps) to 28.7% quarter-over-quarter and was 100 bps higher than a year earlier, though the rate of increase has slowed materially compared to prior quarters.
- Sublease availability continued its decline, falling 20.0% year-over-year to 4.1 million sq. ft. as more available spaces go direct upon lease expiration.
- Rolling four-quarter leasing activity was flat quarter-over-quarter at 5.0 million sq. ft., while Q1 activity decreased slightly to 1.3 million sq. ft.
- New construction remained subdued in Q1 2026 with 476,000 sq. ft. underway, flat quarter-over-quarter and well below the 2.6 million sq. ft. peak seen in Q3 2022.
Denver Industrial Figures Q1 2026
- Total net absorption was positive 416,000 sq. ft., a 51.9% decline from Q4 2025’s total and 16.1% below the level from a year earlier.
- Trailing 12‑month absorption totaled 3.3 million sq. ft., contributing to a three‑year cumulative gain of 10.3 million sq. ft.
- Total vacancy remained stable at 8.6%, unchanged quarter‑over‑quarter and only up 10 bps (basis points) year‑over‑year; direct vacancy trended slightly lower, declining 10 bps from the previous quarter and 30 bps from a year ago to 7.8%.
- Availability edged slightly higher to 10.4%, up 30 bps from Q4 2025 and 50 bps year‑over‑year.
- Sublease availability eased to 1.2%, with 3.2 million sq. ft. of sublease space on the market.
- The new construction pipeline ended Q1 2026 at 3.6 million sq. ft., up 10.1% quarter-over-quarter. Two projects broke ground that amount to a total of four buildings for a combined 743,000 sq. ft., while four buildings delivered 413,000 sq. ft. of new product.
