Tech companies absorbed nearly 849,000 sq. ft. on net over the past four quarters, which was more than double the previous year. The epicenter of this positive movement was Greater Downtown Denver, which saw over 472,000 sq. ft. of positive net absorption by tech companies.
At least 61 tech companies expanded their presence and 22 tech companies opened new offices in the state over the past year, all looking to capitalize on Colorado’s deepening talent pool and inclusive entrepreneurial network.
The growth of flexible office space in the Denver market creates opportunities for tech start-ups and new-to-market tech companies. As of Q2 2018, flexible office space occupied 2.0 million sq. ft. in metro Denver, and an additional 778,000 sq. ft. was either signed for or sought by existing operators.
Venture Capital (VC) funding for Colorado tech companies increased 46% in 2017, and 2018 is on track to be a record year. Companies that expanded their real estate footprint in the past year after receiving funding include Ibotta, Evolve, and Liquid.
Downtown Denver has the region’s fastest-growing tech presence; its share of office space dedicated to the tech sector jumped from 5.9% to 7.8% between Q3 2017 and Q2 2018.
Boulder overtook the Northwest submarket for having the highest tech concentration – 33.4% of Boulder’s office space is now dedicated to tech firms.
The Northwest submarket still has the region’s largest tech footprint and is home to nearly 2.6 million sq. ft. of tech-occupied space.