By Brian McCririe, MCR · April 23, 2026 · SVN Denver Commercial
SVN Denver’s Q1 2026 Denver office occupier report finds the market posting its first positive net absorption quarter since early 2022, with +94,000 SF absorbed as tenant move-outs finally decelerate. Vacancy reached a record 18.1% while total availability hit 21.1%, a spread that continues to arm tenants with exceptional negotiating leverage including roughly one month of free rent per year of term and above-market TI packages. With the construction pipeline down to just 1.4 million SF and 89% pre-leased, the supply overhang that has plagued Class A landlords is set to ease materially in the second half of 2026.
Denver Office Tenants Hold Leverage as Record 18.1% Vacancy Meets First Positive Absorption Since 2022
Here are the key data points shaping Denver office occupier decisions in Q1 2026.
Q1 2026 Denver Office Occupier Report — Key Market Indicators
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First Positive Absorption Since Q1 2022: Net absorption turned to +94,000 SF in Q1 2026 — a pivotal shift driven by slowing move-outs and a 128,000 SF new lease by the Colorado Department of Labor & Employment at City Center that reactivated a significant block of CBD space.
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Record Vacancy & Availability Fuel Tenant Concessions: Vacancy hit a market record of 18.1% (up 60 bps year-over-year) while availability reached 21.1% — a 3.0-percentage-point gap above vacancy representing space that is occupied but actively being marketed. Tenants in Class A/B pre-2015 product can negotiate approximately one month of free rent per year of term plus elevated TI allowances.
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Asking Rents Stable at $30.10/SF Full-Service: Market-wide asking rents edged up just 0.8% year-over-year to $30.10/SF, masking a CBD class-weighted decline as distressed repricing filters through. Premium submarkets command substantial premiums — Platte River leads at $44.78/SF, followed by Cherry Creek at $42.79/SF and LoDo at $39.75/SF.
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Sublease Discount ~30% Below Direct Asking Rent: The direct-to-sublease spread has widened to approximately $9/SF — compared to just over $2/SF in 2019 — meaning tenants seeking built-out, plug-and-play space can capture significant savings by targeting the sublease market rather than direct leases.
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Platte River Is the Hottest Submarket for Leasing Activity: Platte River posted +242,000 SF of positive 12-month net absorption — the strongest performer in the metro — while commanding the highest asking rents at $44.78/SF, reflecting strong demand for well-amenitized, transit-accessible product along the South Platte corridor.
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Pipeline Near Historic Lows at 1.4M SF — Supply Relief Ahead: Under-construction inventory has fallen to just 1.4 million SF (0.8% of total inventory), with 89% of that space already pre-leased. Demolitions are expected to outpace new deliveries in the second half of 2026 for the first time on record, which should meaningfully tighten effective availability over the next 12–18 months.
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Q1 2026 Notable Leases — Government and Healthcare Lead Activity: Eight significant new leases closed in Q1, led by the Colorado Department of Labor & Employment (128,000 SF, CBD), Palazzo Verdi & Fiddlers Green II (33,694 SF, Greenwood Village), DLR Group / Riverside (30,948 SF, CBD), Zynex Medical (30,542 SF, DTC), and Validus Energy at Wewatta Office Tower (29,112 SF, LoDo) — signaling broad-based leasing activity across submarkets and tenant types.
Read the Full Q1 2026 Denver Office Occupier Report
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Brian McCririe, MCR | SVN Denver Commercial
Brian specializes in tenant representation and occupier advisory across the Denver metro office market, helping companies leverage market conditions to negotiate favorable lease terms, right-size their footprints, and identify value in both direct and sublease opportunities. If you’re evaluating your office strategy in 2026, reach out to Brian directly for a no-obligation market consultation.