Denver Asset Management: Current Market Conditions

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For 5 years, we have tracked 91 buildings totaling 22.3M SF across five sub-markets in the commercial real estate sector. Currently, there are 8.6M SF vacant, resulting in approximately 61% occupancy. Factors such as hybrid work, AI advancements, and workplace efficiencies have reduced tenant demand, leaving no clear path back to prior occupancy levels. Occupancy is expected to stabilize in the 70–75% range. 

In terms of existing structure, ownership groups typically rely on leasing brokers for transaction execution and property management for operations. To succeed in this evolving landscape, especially within investment management, a detailed strategic leasing plan specific to each asset is required, with clear direction and oversight. Additionally, increasing activity through a direct-to-tenant engagement campaign, coupled with continuous repositioning based on real-time feedback, is essential for optimizing performance in the commercial real estate market.