Denver area office vacancies remain high in 2026
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Illustration: Sarah Grillo/Axios
Office space is sitting empty across the Denver Tech Center and south metro.
Why it matters: The pandemic triggered a permanent shift in how — and where — Denver-area workers show up.
Zoom in: About 19% of office space along the corridor from the Denver Tech Center to Lone Tree was vacant in the first quarter of 2026, according to CoStar data analyzed by Denver South, the region's economic development partnership.
- That's roughly 9 million empty square feet, says Christine Shapard, Denver South's senior director of economic development.
- The south metro's vacancy rate is down slightly — from about 20% late last year — a hint that the area may be starting to crawl out of its office-space trough.
The latest: Office vacancy rates hit a record high nationwide in the first three months of the year, per Moody's data shared exclusively with Axios.
- About 21% of office space across 79 U.S. markets was vacant in the first quarter — up from 17% in 2020.
Follow the money: Still, a cooling labor market and uncertainty around how AI could reshape jobs are weighing on real estate demand.
Friction point: The vacancy rate is a sign of just how slow the commercial market moves.
- Shapard says our region is still playing catch-up compared to faster-recovering hubs like Atlanta, Austin and Phoenix.
What they're saying: "Everyone got back into the offices in a lot of the other markets, and they haven't in the Denver market as quickly," she says.
- "I do not know why. I don't even want to take a stab at it."
Yes, but: There are signs of life — especially in the DTC.
- Aerospace companies are beginning to absorb space across office, flex and industrial properties.
- York Space Systems is assembling satellites in a formerly vacant building at 6060 S. Willow Drive.
- Smaller professional firms — including attorneys and accountants — are also backfilling space, seeing an opening to move from virtual operations into brick-and-mortar offices.
What to watch: The definition of "the office" is changing.
- "More than ever, the office is no longer viewed solely as a place to work, but as a tool to attract and retain young talent," Moody's analysts write.
The bottom line: The office isn't dead in the Denver metro — but it won't snap back to the way it was.