Commercial Office Space is Soaring

According to the CBRE office leasing dropped by 45% last year in Metro Denver and sublease space reached levels not seen in at least 20 years and there is another 2.4 million square feet of speculative office space coming to the market soon. In fact, there is now 4.7 million square feet of sub-leased space available for rent, an 86% increase from the beginning of 2020.

Rick Schuham, vice chairman for real estate firm Savills said, "The office is definitely not dead, but the way office is used is, in our opinion, has changed structurally for the long-term."

Why do I tell you this? If the commercial office markets see large vacancies then nearby restaurants and stores will close. And there will be fewer reasons to live or own real estate in these commercial market areas like downtown Denver and possibly DTC.