The office market is more diversified by industry than during the last oil price drop in 2014-15, but with U.S. oil prices falling by 57% during March 2020, there is potential for the energy industry to contract – by how much is still to be determined.
Energy companies occupy about 14% of the total downtown Denver office market, or about 4.1 million sq. ft. Of that, 582,000 sq. ft. was available for sublease as of mid-March 2020.
Although some short-term pain is expected, the market is likely to make a full recovery as CBRE monitors sublease space and tenant demand.