Denver has been one of the healthier regions during the recessions. Its metro unemployment rate of 7.9% is two points below the national average, and that's excluding the college-fueled employment in nearby Boulder. Additionally, over 25,000 of its jobs come from non-health, non-retail locally headquartered companies like Level 3, Echostar, Qwest, and Coors.
But its office market is slumping like any other, with office landlords offering major concessions, including nearly a year's worth of free rent. And according to a PriceWaterhouseCoopers report, cap rates (building operating income/price paid to buy the building) rose 6/10ths of percent to 8.4%, meaning prices for office properties are still dropping relative to the income they produce.
With a healthy market like Denver struggling to fill its space, it's likely going to be a buyer's market for office space for years. It's also a good chance for downtowns to entice tenants who might otherwise head to the suburbs for cheap rents.