Urban Core at Forefront of Healthy Office Market; Vacancy Scheduled for Steep Drop

The HUB RiNo
The HUB in RiNo added 280,000 square feet of office space. (Rendering: Gensler)

According to Marcus & Millichap’s Q2 Denver Office Report, downtown Denver is becoming more attractive to Fortune 500 companies. As more high-profile businesses establish themselves in the Mile High City, the Denver office market continues to gain prominence. Luxury office space is being developed at a record pace, illustrating the persistent rise in demand.

Availability of Class A office space remains on a downward trend as more corporations relocating from other parts of the country as well as local businesses transitioning from the suburbs vie for urban floor plates. In addition, coworking is beginning to play a significant role in space demand, headlined by WeWork, which is on track to grow its Denver footprint by more than 200 percent this year. Suburban submarkets are also performing well; however, space absorption is occurring at a more moderate pace.

The bulk of office construction will again be concentrated in and around the core this year. Mixed-use projects headline development with The HUB containing roughly 280,000 square feet of office space and Platte 15 adding approximately 160,000 square feet. Prism Workspaces’ new facility in downtown Denver comprises another notable development. Broomfield will also witness strong construction in 2019 as more employers fill the Northwest Corridor, further boosting the area’s economic output and appeal to large-scale companies. Broomfield will add more than 200,000 square feet of office space by the end of the year, consisting of several small business parks.

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