Denver ends 2020 with its lowest amount of yearly office leasing activity in decades
The Denver market witnessed 4.4 million square feet (msf) of office leasing activity in 2020, its lowest tally in over two decades. In comparison to the 8.6 msf of leasing activity reported in 2019, transaction volume is down 48.7% year over year. However, transactions were notably up over the third quarter, increasing 18.2% to 951,000 square feet (sf) leased. Many occupiers spent the greater part of the year re-evaluating space needs, often deciding to delay longterm real estate decisions until uncertainty wanes. Some companies that have been active in the market have elected for short-term renewals, preferring a "wait-and-see" approach. Although the recent news of vaccine distribution is promising, leasing activity is anticipated to remain weakened in the near term until immunization becomes more widely available.