Denver’s downtown has experienced a significant shift in recent years. Once a highly sought after destination, many of its office buildings are now sitting vacant or only partially occupied.
“Downtown Denver has seen a dramatic shift downward in demand,” real estate agent Jim Merrion of Coldwell Banker Realty in Denver tells Realtor.com®. “Office space vacancy reached 38% at the end of 2025, meaning over 1 in 3 buildings sit vacant. This has caused a noticeable drop in demand for the downtown residential marketplace.”
According to Merrion, the COVID-19 pandemic had a major impact on office occupancy, with a majority of businesses shifting to near-fully remote work for several years. “Many large employers have left downtown, with TIAA relocating 1,000 jobs to Texas and Xcel Energy downsizing its HQ and moving out of downtown altogether,” he says.
But right on the edge of downtown, neighborhoods like Cherry Creek and Washington Park are seeing strong demand and population growth.
Prices soaring in downtown-adjacent neighborhoods
Home prices continue to climb sharply in residential neighborhoods near downtown.
“Neighborhoods that offer the walkability of an urban core but the feel of a suburban community are highly desirable for buyers, especially young families,” says Hannah Jones, senior economic research analyst at Realtor.com®. “Having all of the convenience of a big city at your fingertips without sacrificing the suburban, small-town feel translates into high home values.”
The median listing price in Cherry Creek was $1.4 million in March—up 37.2% compared with pre-pandemic levels. In Washington Park, the median price was $2.1 million—up 47.4% versus 2019.
“Home values in these neighborhoods have been well above the Denver median throughout the data’s history, but the sustained growth compared to pre-pandemic levels suggests that these neighborhoods continue to attract competition even as the larger Denver market cools,” says Jones.
Denver’s median listing price is currently $537,000, up only slightly from its pre-pandemic median of $531,000.
Downtown’s decline
While the pandemic is largely responsible for downtown Denver’s downturn, Jeffrey J. Peshut, assistant professor of finance and director of the real estate program at MSU Denver, says rising interest rates are also a contributing factor.
"Higher interest rates after 2022 increased the weighted cost of capital and decreased building values for owners that had purchased and financed buildings prior to 2022," he tells Realtor.com. "The Fed's decision to begin increasing interest rates in the first half of 2022 slowed employment and put additional pressure on the occupancy and rental income of office buildings."
Merrion also points to the 16th Street Mall reconstruction, launched in 2022, as a major disruption to downtown’s recovery.
"Denver’s decision to tear up the 16th Street Mall for a massive, multiyear infrastructure upgrade in 2022, just as downtown businesses were recovering, was a fatal error," he says.
According to Merrion, the expansion of the region’s transit network was another factor in Denver's downtown decline. “The growth of the RTD Light Rail has made it easier for residents to live farther from downtown while still maintaining relatively quick access to offices when needed,” he says.
He says Cherry Creek’s office market continues to see relatively low vacancy, but there's been an influx of businesses that previously operated downtown. “This translates into robust demand for residential homes in Cherry Creek, with prices continuing to appreciate despite interest rate increases,” he says.
According to Merrion, Washington Park—directly south of Cherry Creek—has also continued to appreciate in value while offering a more suburban-feeling urban lifestyle.
“The evidence clearly shows that while many people value proximity to Denver’s amenities, they are choosing to live in areas that require driving or transit to reach downtown,” he says.
The appeal of Cherry Creek
Merrion says the areas seeing the strongest demand are those with parks, walkability to neighborhood eateries, and lower-density housing.
“This is why Cherry Creek has seen extraordinary price stability despite the broader market slowdown, and residential homes are expected to appreciate at least another 5% this year, mirroring 2025,” he says. “Multiple housing price tiers make it more accessible to buyers, and it is still fairly common to see multiple offers on well-positioned listings.”
He compares Cherry Creek’s vibe to Chicago’s Lincoln Park.
“It feels like a very walkable yet luxury-oriented hub with restaurants, art galleries, high-end shopping, and residential living all within blocks,” he says.
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Washington Park is booming
Washington Park is seeing rising buyer interest and steady price growth.
“Washington Park continues to see strong demand, with many homes going under contract in under three weeks and 4% year-over-year appreciation,” Merrion says. “It attracts residents interested in walkable and vibrant city living.”
Known locally as “Wash Park,” the neighborhood is anchored by one of Denver’s most popular parks, featuring lakes, a recreation center, and extensive running and biking paths.
“It’s also filled with historic homes featuring architectural details rarely seen in modern construction,” he says, “along with plenty of local dining and shopping within walking distance.”
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Julie Taylor is a reporter for Realtor.com. She was most recently a writer and co-executive producer on “The Talk” where she won two Daytime Emmy Awards. A member of the Writers Guild of America, Julie has written for Cosmopolitan, Glamour, and Redbook magazines and is the author of six books. Julie earned a B.A. in magazine journalism from the University of Central Oklahoma. After two decades in New York City and Los Angeles, she recently relocated to the Midwest.
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