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According to CoStar, Denver’s office market faces persistent challenges with a record vacancy rate of 18.2% as of Q1 2026, driven by annual net absorption of -1.5 million square feet and tenants downsizing footprints—average lease sizes have dropped 40% since 2015 to about 3,200 SF. The Central Business District (CBD) reports the highest vacancy at over 31%, though move-outs have slowed recently, with only 200,000 SF of negative absorption in the past year. Early positive signs include steady leasing activity and reduced negative absorption across fewer submarkets, suggesting potential stabilization if economic uncertainty eases.​

Supply pressures are easing as construction slows to 1.5 million SF underway—down from pre-pandemic averages—and demolition outpaced deliveries for the first time on record, shrinking inventory slightly. Government tenants, like the Colorado Department of Labor and Employment’s 128,000 SF lease in the CBD, are driving activity in older commodity spaces, while tech-driven flexible work continues to hinder demand, particularly in newer properties. Submarkets like Cherry Creek remain resilient with low 4.5% vacancy and premium rents up to $75/SF NNN, attracting established firms.​

The tenant-favorable environment sustains modest 0.7% asking rent growth at $30.04/SF., with concessions like free rent and 30% sublease discounts prevalent, especially amid high availability. Investment sales volume hit $1.2 billion in the past year, up from mid-2024 lows, with average prices at $200/SF and cap rates at 9.4%, favoring opportunistic private equity buyers targeting distressed older assets. Forecasts indicate vacancy may stabilize by year-end, supported by adjusted corporate space needs, though risks from federal job cuts via DOGE initiatives loom.

The multifamily sector in Wyoming remains characterized by limited supply and persistent affordability challenges as of early 2026. The state ranks among the lowest in the nation for new multifamily construction, building the 12th fewest multi-family homes nationally in recent periods, which exacerbates an ongoing housing shortage estimated in the millions nationwide but felt acutely in Wyoming due to constrained development. This scarcity contributes to elevated demand pressures, particularly in key areas like Cheyenne, Casper, and Jackson, where population inflows, energy sector stability, and lifestyle appeal drive interest. Statewide rental vacancy rates hover around 5%, slightly above some historical lows, but still indicative of a relatively tight market compared to national averages, with homeownership constraints continuing to push more households toward renting.

Rent trends in Wyoming show variability, with statewide averages around $1,250/month for apartments, though specific cities differ. Cheyenne yields a median of around $1,335 and Casper closer to $1,000. Recent data points to modest or even softening rent pressures in some segments amid national multifamily stabilization, with projections for slight declines or slower growth in certain Western markets influenced by broader supply adjustments. However, Wyoming’s limited new deliveries help sustain rental demand, and affordability concerns persist, as renters often spend close to or above 30% of income on housing. Efforts to address this include local policy changes, such as reduced lot sizes and parking requirements in Cheyenne to encourage smaller units and apartments.

Looking ahead to 2026 and beyond, Wyoming’s multifamily sector benefits from steady economic drivers like energy jobs and migration, supporting gradual rent growth and stable occupancy in high-demand locales. National forecasts suggest improving multifamily fundamentals as construction pipelines shrink and absorption catches up, potentially leading to firmer rent gains and lower vacancies in undersupplied states like Wyoming. While broader U.S. trends indicate balanced supply-demand dynamics and modest price appreciation, Wyoming’s market emphasizes supply constraints and local initiatives to boost inventory, positioning it for resilient performance amid regional Western variations.

For a full analysis of hotel conditions in Wyoming, please contact Ferguson Appraisals for a free market summary.