Denver leasing demand plummets again while COVID-19 continues to disrupt market fundamentals
Economic activity faltered in the third quarter, both locally and nationally, due to the ramifications of the COVID-19 pandemic. Third-quarter office leasing volume fell below 1.0 million square feet (msf), the lowest quarterly total in more than a decade. This represents a 31.2% decline from last quarter and a 64.2% decline compared to Q3 2019. Many occupiers are reevaluating space needs and are delaying long-term real estate decisions until uncertainty wanes. Meanwhile, most office-using employees continue working remote. Many deals closed over the past six months have been short term renewals as occupiers prefer a waitand-see approach. Demand for office space after the new year may largely hinge on whether an effective vaccine will become available in the foreseeable future.