CREJ

/ BUILDING DIALOGUE / DECEMBER 2017

f “money talks,”

then real estate

makes the world

go ’round. Much more

than a simple business

deal, real estate transac-

tions transform commu-

nities and create our col-

lective vision of “place.”

This vision changes over

time in response to ad-

vancing technologies, eco-

nomic factors and market

dynamics.

There is no better ex-

ample of this phenome-

non than at Interlocken,

the award-winning, 963-

acre advanced technolo-

gy business park located

in the heart of the high-

tech U.S. 36 creative corridor. Starting with little

more than open fields and a dream, Interlocken

Advanced Technology Environment has matured

into a vibrant business community that has trans-

formed the northwest submarket and the Denver/

Boulder corridor, as well as spurred additional ma-

jor developments within the market.

The NW submarket has a history of volatility.

Recording a 50 percent vacancy rate in 2001, leas-

ing activity in the NW submarket has dramat-

ically increased in subsequent years. Since 2015,

vacancy in the NW submarket has declined sig-

nificantly, dropping to just 12.7 percent as of third

quarter 2017. This rate is well below the overall of-

fice market rate of 15.1 percent as well as that of

other core submarkets. In comparison, vacancy in

Denver’s downtown submarket was 15.3 percent for

the same time-period, and the dynamic southeast

suburban submarket vacancy was 16.1 percent.

Value opportunities within the NW market –

which tend to be more dramatic than in many

other core submarkets due to lower asking rents

and land values – are consistently snatched up by

companies looking to enter the Denver market, as

well as area corporations wanting access to an ed-

ucated, young and motivated working pool, eco-

nomic incentives, and options for expansion. This

continuing drop in vacancy encourages additional

new development opportunities within the NW

submarket, and particularly in the Denver/Boul-

der corridor, where Interlocken is situated.

After the development of 281 acres of land sales

and 4.337 million square feet of office space during

the last two decades, there was an obvious swing

toward national and international tenant attrac-

tion at Interlocken. Two recent announcements

highlight Interlocken’s appeal to international

companies looking to solidify their presence in

the U.S.: German plumbing supply company Vie-

ga’s campus at 575 Interlocken on approximately 12

acres, and Partners Group’s new headquarters on

25 acres at 1200 Eldorado Blvd. It is significant that

now, Denver’s NW market is viewed as a viable al-

ternative to coastal cities and other hub markets.

Partners Group, for example, is downsizing or clos-

ing other U.S. locations as it moves to the Denver

area.

Both companies cited Interlocken’s proximity to

area airports (Denver International Airport as well

as Rocky Mountain Metropolitan Airport), and

nearby amenities like the Omni Interlocken Resort

and conference center as major draws. Addition-

ally, numerous fine dining options, the FlatIron

Crossing super regional mall, access to an educated

and healthy labor pool and outstanding lifestyle

draw were prime incentives to choose Interlock-

en for the next phase for their respective compa-

nies. These positive attributes have also attracted

leading-edge companies and major employers to

the advanced technology park – drawing from both

Colorado as well as across the nation.

Interlocken’s maturation reflects the growth of

the NW market and the city of Broomfield, with

its early days closely mirrored in the nascent de-

velopment of McWhinney’s North Park. Located

at Interstate 25 and Northwest Parkway in Broom-

field, the 1,100-acre North Park development will

include office and medical office product, along

with residential, retail and hospitality uses to cre-

ate “an urban heart of North Denver that will set

the standard for environmental stewardship, in-

novation and healthy living.” North Park’s inno-

vative design, focused on incorporating a balance

of urban connectivity, natural open space, and

David Hart

Executive

Managing

Director,

Newmark

Knight

Frank

ELEMENTS

Market Update

Interlocken’s Maturation and North Park’s Infancy: Communities Transform to Create Vision of ‘Place’

The northwest submarket has been transformed.