Denver, CO Retail Market Report Q3 2026
Pricing Reaches a Record $290/SF; Vacancy Holds at 4.5%
Demand
Denver absorbed 53K SF in Q3 2026, against -141K SF in the same quarter last year. Vacancy is 4.5%, 5 bps tighter than Q3 2025. Southeast Outlying is the tightest submarket at 1.2% vacancy; Southeast leads rent growth at +1.5%. Trailing-12-month absorption of -13K SF compares with -1.32M SF a year earlier. Asking rent of $27.60/SF is up 1.1% year over year and within 1% of the Q2 2026 peak of $27.66/SF.
Supply
Denver delivered 50K SF in Q3 and 462K SF over the trailing twelve months (+20% versus the prior TTM period). Space under construction equals 1.0% of inventory, concentrated in Southeast at 4.7% of its stock. Annual deliveries peaked at 5.22M SF in 2006. Q3 deliveries were less than half of last year’s 152K SF.
Investment Market
Denver recorded $1.6B in sales over the trailing twelve months, +23% against the prior TTM period; Q3 accounted for $369M. The high-water mark in this series is $2.0B in 2022.
Denver cap rates average 6.75%, up for 20 straight quarters. Pricing sits at $290/SF, higher for 2 consecutive years. The cap rate is 53 bps above the Q3 2021 low of 6.22%. Price per SF is at a record.
Volume
- $1.6B TTM volume (+23% YoY)
- Q3 2026: $369M
- Series peak $2.0B (2022)
Pricing
- Cap rate 6.75%
- Price per SF $290
- Caps expanding 20 quarters running
