Oil prices have rebounded to $47/bbl (WTI) in June 2017—this is up from just $26/bbl in February of 2016. Following an oversupply of crude in international markets, prices began falling in summer of 2014 after reaching levels in excess of $100/bbl.
Despite the increasing prices of the past 15 months, oil and gas companies were accountable for more than 100K sq. ft. of negative absorption in downtown Denver over the past year. The negative impacts of this shrinking footprint have been largely contained to a rise in available Class B sublease space in the Mid-Central micromarket.
The downtown Denver market has remained healthy despite the slowdown. That said, 55% of the oil and gas footprint is expected to expire between 2019 and 2022—with as much as 30% expected to come back to the market as direct space.