D
enver's downtown office buildings continue to experience high vacancy rates, with a 36.8% rate in the second quarter, according to CBRE. The broader Denver metro area fared slightly better at 27%, but still faces significant challenges. As companies gradually return to the office and adopt hybrid work policies, some activity is emerging, but it's not enough to fill vacant spaces.

    New leases have slowed dramatically, with only 1.1 million square feet leased in the second quarter, a 40% decrease from the same period last year. Landlords are increasingly abandoning older buildings that can't attract tenants, leading to a surge in demolitions and conversions of dated properties. This trend is expected to intensify as property owners struggle with debt burdens.

    However, there are some positive developments. Cherry Creek is experiencing a resurgence, with new office construction and the attraction of companies seeking modern, high-end space.