Market Trends
- With a slowdown in the construction pipeline and a decrease in availability, tenant demand remains high as rental rates increased 15.9% year over year.
- Vacancy increased 100 basis points from Q2 2022 as several large projects delivered throughout the year adding 10.1 million square feet (msf) to the Denver market in 2022.
- Quarterly net absorption of 0.8 msf, the lowest quarterly figure since Q3 2021, could be the first sign of softening demand after a record year that saw 9.9 msfof net absorption.