Denver Commercial Office Space for Rent

Q3 2026

Q3 2026 Denver Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Denver's commercial real estate market is stabilizing. Office posted its strongest quarterly absorption in four years, industrial vacancy held flat at 7.8%, retail vacancy matched its five-year average at 5.0%, and apartment vacancy fell to its lowest level in more than a year. Tenant demand on TenantBase shifted sharply toward office: office space accounted for 45.9% of all Denver tenant searches in Q3, more than four times its 11.0% share in Q2.

Sector Snapshot

  • Office: Stabilizing. Vacancy held at 26.6% in Q2 with about 120,000 SF of positive absorption, the strongest quarter since early 2022.
  • Industrial: Steady. Overall vacancy was flat at 7.8% with rents edging higher.
  • Retail: Balanced. Availability held at 5.0% with positive Q2 absorption.
  • Multifamily: Improving. Vacancy fell to 5.74% as absorption outpaced new deliveries.

Denver Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Denver metro are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Retail/Storefront: 49.4%
  • Office: 45.9%
  • Warehouse/Industrial: 4.7%

Three-Quarter Trend

  • Retail/Storefront: 56.4% in Q1, 57.8% in Q2, 49.4% in Q3
  • Office: 11.1% in Q1, 11.0% in Q2, 45.9% in Q3
  • Warehouse/Industrial: 32.8% in Q1, 32.3% in Q2, 4.7% in Q3

Key Takeaways

  • Office demand more than quadrupled, from 11.0% to 45.9% of Denver searches, after holding flat in Q1 and Q2.
  • Office space needs grew. Tenants seeking 5+ year office terms averaged 6,250 to 12,500 SF in Q3, two and a half times the 2,500 to 5,000 SF in Q2. Short-term searches averaged 2,071 to 4,357 SF, up from 700 to 1,600 SF.
  • Retail tenants added flexibility. Retail searches for terms under one year rose from 7.9% in Q2 to 26.3% in Q3.
  • Aurora led location interest, followed by the Northwest Corridor, West Denver, the Denver Tech Center, and Lone Tree/Highlands Ranch.

Office Market

Denver office vacancy held essentially flat in Q2 2026, the most recent quarter with published metro data, while absorption turned in its best result in four years.

Key Metrics (Q2 2026)

  • Vacancy: 26.6%, down 10 basis points year over year (Cushman & Wakefield)
  • Net absorption: about 120,000 SF, the strongest quarter since Q1 2022 (Cushman & Wakefield, via Bisnow)
  • Submarkets: Downtown at 38.6% vacancy, River North at 42.3%, Cherry Creek at 12.8%, and the Southeast suburbs including the Denver Tech Center at 26.4% (CBRE, via Bisnow)

TenantBase Office Activity

Demand share: 45.9% of Denver tenant searches, up from 11.0% in Q2 and 11.1% in Q1.

Lease term preferences:

  • Less than one year: 41.0%
  • 2 to 3 years: 25.6%
  • 3 to 5 years: 25.6%
  • 5+ years: 7.7%

Space requirements by term:

  • Less than one year: 2,071 to 4,357 SF
  • 2 to 3 years: 1,375 to 3,125 SF
  • 3 to 5 years: 1,188 to 2,250 SF
  • 5+ years: 6,250 to 12,500 SF

Top locations: Aurora was the most requested area across all space types in Q3, followed by the Northwest Corridor, West Denver, the Denver Tech Center, and Lone Tree/Highlands Ranch.

TenantBase data vs. the market: Denver office demand on TenantBase is concentrated in the suburbs rather than downtown. That matters because downtown vacancy sits near 39% while Cherry Creek is just 12.8%. Tenants open to downtown or River North hold the most negotiating leverage in the metro, while those focused on Cherry Creek should expect tighter conditions. Suburban markets like the Tech Center, at 26.4% vacancy, offer a middle ground.

Industrial & Warehouse Market

Key Metrics (Q2 2026)

  • Overall vacancy: 7.8%, down 30 basis points year over year (Cushman & Wakefield)
  • Year-to-date net absorption: about 949,000 SF (Cushman & Wakefield)
  • Average asking rent: $10.09/SF NNN, up $0.17 year over year (Cushman & Wakefield)
  • Under construction: about 4.2 million SF, mostly speculative (Cushman & Wakefield)
  • Notable lease: Kuehne & Nagel, 255,000 SF at Mile High Logistics Center (Cushman & Wakefield)

TenantBase Industrial Activity

Demand share: 4.7% of Denver tenant searches, down from 32.3% in Q2 and 32.8% in Q1. Industrial searches in Q3 averaged 1,750 to 6,250 SF.

TenantBase data vs. the market: With 4.2 million SF under construction and about 1.6 million SF of speculative space due by year-end, small industrial users should find more options in the months ahead.

Retail Market

Key Metrics (Q2 2026)

  • Availability: 5.0%, matching the five-year average (CBRE)
  • Net absorption: positive 253,000 SF (CBRE)
  • Average asking rent: $20.63/SF NNN (CBRE)

TenantBase Retail Activity

Demand share: 49.4% of Denver tenant searches, the largest category for the third straight quarter.

Lease term preferences:

  • Less than one year: 26.3%
  • 2 to 3 years: 26.3%
  • 5+ years: 23.7%
  • 3 to 5 years: 18.4%
  • 1 to 2 years: 5.3%

Space requirements by term:

  • Terms of 5 years or less: 500 to 1,000 SF
  • 5+ years: 6,017 to 6,700 SF

TenantBase data vs. the market: Denver retail demand on TenantBase splits between small storefront users under 1,000 SF on terms of five years or less and larger operators seeking about 6,000 SF on 5+ year commitments. With availability steady at 5.0%, small-format tenants will find options across the metro, while larger users should plan further ahead.

Multifamily Market

  • Vacancy: 5.74% in Q2 2026, down from 6.84% in Q1 (Matthews)
  • Q2 absorption: 5,902 units, up 58.0% year over year (Matthews)
  • Under construction: 15,493 units, the lowest in at least five years (Matthews)

Rents remain down 4.7% year over year but have improved for three straight quarters as new supply slows.

Q4 2026 Outlook

  • Office: Expect gradual stabilization, with suburban small-suite demand from TenantBase searches supporting leasing outside downtown.
  • Industrial: Expect more options for tenants as speculative supply delivers.
  • Retail: Expect availability near 5.0% and stable rents.
  • Multifamily: Expect vacancy to keep improving as the pipeline shrinks.

Frequently Asked Questions

What type of commercial space are Denver tenants searching for in 2026?

In Q3 2026, retail/storefront space made up 49.4% of Denver tenant searches on TenantBase, followed by office at 45.9% and warehouse/industrial at 4.7%. Office share rose from 11.0% in Q2.

Which Denver areas are tenants searching most?

Aurora was the most requested area on TenantBase in Q3 2026, followed by the Northwest Corridor, West Denver, the Denver Tech Center, and Lone Tree/Highlands Ranch.

What lease terms do Denver office tenants want?

41.0% of Denver office tenants on TenantBase sought terms under one year in Q3 2026, while 25.6% sought 2 to 3 years and 25.6% sought 3 to 5 years.

What is the office vacancy rate in Denver?

Denver office vacancy was 26.6% in Q2 2026, according to Cushman & Wakefield, with downtown near 38.6% and Cherry Creek at 12.8%, according to CBRE.

What is the industrial vacancy rate in Denver?

Denver industrial overall vacancy was 7.8% in Q2 2026, with asking rents of $10.09/SF NNN, according to Cushman & Wakefield.

How can I find commercial space in Denver at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Denver metro at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Denver, July 1 to September 30, 2026
  2. TenantBase, Denver Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Denver Commercial Real Estate Market Report, Q1 2026
  4. Cushman & Wakefield, Denver MarketBeats, Q2 2026
  5. Bisnow, Denver Office Market Posts Best Absorption in 4 Years (July 13, 2026)
  6. Cushman & Wakefield, Denver Industrial MarketBeat, Q2 2026
  7. CBRE, Denver Retail Figures, Q2 2026
  8. Matthews, Denver Multifamily Market Report, Q2 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.