Denver’s Downtown Dilemma: Can Office Life Recover From the Work-From-Home Shift?
Five years after the widespread adoption of remote work policies during the COVID-19 pandemic, downtown Denver is grappling with a persistent challenge: bringing workers back to the office. While foot traffic has improved in some areas, particularly along the 16th Street promenade, many corridors remain strikingly vacant, impacting the city’s economic vitality.
The Lingering Impact of the Pandemic and Beyond
The pandemic initially emptied Denver’s streets between 2020 and 2022. Though the number of jobs downtown has rebounded from a low of around 134,000 in 2021 to approximately 156,000 currently – representing 30% of the city’s total workforce – office absorption has been negative. From 2020 through 2023, Denver saw a net loss of 5 million square feet of office space. Recent vacancy rates are a staggering 38.2% as of the end of 2025.
However, the pandemic isn’t solely to blame. Even before 2020, in-person work accounted for only 60% to 75% of total jobs downtown. That figure remains around 66% today.
Residential Boom vs. Commercial Struggles
While office space struggles, residential development is thriving. Approximately 9 million square feet of residential space has been added downtown, with half of that coming after 2015. Major projects like the Upton Residences, set to deliver 461 latest units, are underway. City officials aim to add another 1,000 to 1,500 residential units in the near term, with developers exploring conversions of older office towers.
This shift reflects a broader trend: a move towards prioritizing residential living in the urban core, potentially at the expense of traditional office spaces.
Return-to-Office Rates Plateau
Despite efforts to encourage employees to return to the office, return-to-office (RTO) rates have largely stalled. Data from the Downtown Denver Partnership shows weekday RTO rates hovering around 65% or 66% from 2023 through early 2026. What we have is attributed to the popularity of flexible work schedules.
State agencies are also contributing to the trend, with a governor’s initiative adopted in 2019 aiming to reduce the state government’s physical footprint as a cost-saving measure. The state government has reduced its office space statewide by 660,766 square feet.
Doug Platt, communications manager for the Colorado Division of Human Resources, notes that remote work policies help attract and retain talent who wish to avoid daily commutes and parking challenges.
Industry Variations and Future Outlook
The impact of work-from-home varies by industry. Tech workers, for example, are working on-site around half the week on average, compared to financial service workers who are closer to three days a week.
Analysts consider Denver’s vacancy rates as “stabilizing,” but the city’s upper downtown area continues to struggle. Kourtny Garrett, president and CEO of the Downtown Denver Partnership, emphasizes that downtown remains a key job center for the Rocky Mountain region, pointing to the retention of over one million square feet of tenants whose leases were expiring in 2025.
A new Downtown Area Plan adopted by City Council outlines a 20-year roadmap for the area’s future.
FAQ
Q: What is the current office vacancy rate in downtown Denver?
A: Approximately 38.2% as of the end of 2025.
Q: How has the pandemic affected downtown Denver’s workforce?
A: While the number of jobs has recovered, office absorption is negative, and return-to-office rates have plateaued.
Q: What is being done to address the vacancy issue?
A: Efforts include converting office buildings into residential units and implementing a 20-year Downtown Area Plan.
Q: Is the state government encouraging employees to return to the office?
A: The state supports flexible work arrangements to attract and retain employees and reduce its overall footprint.
Did you realize? The state government has reduced its office footprint by over 660,000 square feet since 2019.
Pro Tip: Consider the impact of transportation and parking when evaluating the feasibility of returning to a downtown office.
What are your thoughts on the future of work in Denver? Share your comments below!
