A ranked analysis of Denver’s retail submarkets to help investors identify the strongest opportunities.
Submarket Selection Matters
While Denver’s overall retail market is performing well, not all submarkets offer equal investment potential. Demographics, competition, traffic patterns, and future development all impact retail performance. This analysis ranks Denver’s retail submarkets based on fundamentals, growth potential, and investment characteristics.
Top Denver Retail Submarkets
| # | Submarket | Demographics | Vacancy | Rating |
| 1 | Cherry Creek | Affluent | Very Low | Excellent |
| 2 | South Denver/DTC | Upper-Middle | Low | Excellent |
| 3 | Boulder | Affluent | Very Low | Excellent |
| 4 | Highlands/LoHi | Young Professional | Very Low | Very Good |
| 5 | Lakewood/West | Middle-Class | Low | Very Good |
| 6 | Aurora | Diverse | Moderate | Good |
Source: CoStar, SVN Denver Commercial, CBRE, Cushman & Wakefield Denver Retail Reports 2025
1. Cherry Creek – Premium Market
Cherry Creek represents Denver’s premier retail destination and offers exceptional investment fundamentals.
Key Strengths: Highest household incomes in the metro area. Walkable, urban-suburban environment. Mix of luxury, lifestyle, and essential retail. Cherry Creek Shopping Center provides regional draw. Extremely limited new supply due to built-out nature. Strong restaurant and entertainment scene complements retail.
Investment Profile: Lowest cap rates in market (5.50-6.50%). Trophy assets rarely trade. Strong rent growth potential. Institutional-quality investment.
2. South Denver/DTC – Employment-Driven
The South Denver corridor benefits from strong employment and residential density.
Key Strengths: Major employment concentration (Denver Tech Center). Upper-middle-income residential demographics. Strong daytime population supports retail and restaurants. Excellent highway access (I-25, C-470). Mix of neighborhood and regional retail formats.
Investment Profile: Cap rates of 6.00-7.50%. Good liquidity with active transaction market. Stable, predictable performance.
3. Boulder – Unique Market
Boulder offers a distinctive retail environment driven by affluent residents and university presence.
Key Strengths: Highly educated, affluent population. University of Colorado provides consistent traffic. Pearl Street Mall creates unique pedestrian retail. Strong tourism component. Extremely limited new development due to growth controls. Health and outdoor-oriented consumer base.
Investment Profile: Premium pricing reflects scarcity. Limited transaction volume. Unique tenant mix differentiates from typical suburban retail.
4. Highlands/LoHi – Urban Infill
Denver’s hottest urban neighborhood offers exceptional retail fundamentals.
Key Strengths: Walkable urban environment. Young, affluent demographic. Restaurant and nightlife destination. Limited supply with high barriers to entry. Strong rent growth trajectory. Mixed-use development creates synergy.
Investment Profile: Primarily small-format, ground-floor retail. Cap rates of 5.75-7.00%. Smaller deal sizes suit private investors.
5. Lakewood/West Denver – Value Market
West Denver offers solid fundamentals with more attractive pricing than premium submarkets.
Key Strengths: Stable middle-class demographics. Good highway access (I-70, US-6). Mix of grocery-anchored and strip retail. Federal Center employment base. Value-oriented tenant demand.
Investment Profile: Higher cap rates (6.50-8.00%) than premium submarkets. Good value relative to fundamentals. Accessible for smaller investors.
6. Aurora – Growth Market
Aurora offers growth potential driven by population expansion and redevelopment.
Key Strengths: Large, growing population base. Diverse demographics support variety of retail concepts. Significant redevelopment activity. Anschutz Medical Campus drives traffic. More affordable rents attract expanding tenants.
Investment Profile: Higher yields (7.00-8.50%) reflect perceived secondary status. Value-add opportunities in repositioning. Growing investor interest as market matures.
Investment Strategy Recommendations
For core investors: Focus on Cherry Creek, South Denver, and Boulder for stability and quality tenants. Accept lower yields for lower risk.
For yield-focused investors: Consider Lakewood and Aurora for higher cap rates while maintaining solid fundamentals.
For growth investors: Highlands/LoHi offers appreciation potential in Denver’s hottest urban neighborhood.
Bottom Line
Denver’s retail submarkets offer distinct risk-return profiles for different investment strategies. Cherry Creek and Boulder provide stability at premium pricing, while Lakewood and Aurora offer higher yields with solid fundamentals. Matching submarket selection to investment objectives is essential for success in Denver retail.
About SVN Denver Commercial
SVN Denver Commercial provides expert guidance on retail submarket selection and investment strategy. Contact us to discuss which submarkets align with your investment objectives.