Denver sets post-pandemic record for office returns — but has a long way to go
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Denver's office attendance hit a post-pandemic high in July, though vacancies are still soaring, new data shows.
Why it matters: In-person attendance is slowly climbing, but a return to pre-pandemic proportions might be a long shot.
By the numbers: Office visits in Denver rose to nearly 64% of their July 2019 levels last month, though they remain below the national average of 72%, according to figures from Placer.ai, which tracks foot traffic from mobile devices.
- To persuade more people to come to the office, some companies have started offering flexible schedules, free parking, food and transportation benefits.
Yes, but: Despite the back-to-office uptick, Denver's office vacancy rates are at an all-time high, per data from Moody's Analytics.
- 23% of office space across the metro area was vacant as of the second quarter of this year — exceeding the national average of 20% — and up six percentage points compared to pre-pandemic levels.
- The same holds true for downtown Denver, where the vacancy rate is about 34%, per commercial real estate agency JLL — the city's highest rate on record.
State of play: Denver is one of the top metros turning empty offices into new apartments, and Mayor Mike Johnston is attempting to double down on the effort with a ballot measure this November that, if approved, could generate more than $500 million to help revive downtown.
- The city and the state also rank highly for their share of remote workers compared to national figures.
The big picture: Remote work is redefining the future of downtown Denver and reshaping office life across the U.S.
- Nationwide office foot traffic hit its highest point since July 2019 last month, the latest Placer.ai data shows.
- However, not all cities are bouncing back equally. Miami and New York are nearing pre-pandemic office attendance, while San Francisco struggles to hit 50%.
The bottom line: Year-over-year foot traffic grew in all 11 cities featured in the Placer.ai report, representing a variety of America's biggest metros — "further evidence that the office recovery remains very much underway," writes author Lila Margalit.