A strong continuation of sublease availability dictates the Denver office market for the second quarter in a row
For the second quarter in a row, the Denver office market has shown a dramatic increase in sublease space availability. With a rise of almost 25% more space from 4.5 million square feet (msf) reported last quarter to 5.6 msf reported this quarter, the sublease realm has composed a large portion of overall availability rates. As economists try and predict the possibility of a “mild recession” in the remaining months of 2022 or in 2023, several larger firms have hit pause on office space growth. Leasing activity slightly declined year over year as several tenants have pushed pause on their expansion plans. These factors, coupled with the large volume of sublease space, have directly contributed to a total availability rate that is now 25.6%.