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Page 2AA — COLORADO REAL ESTATE JOURNAL — March 18-March 31, 2015
by Jill Jamieson-Nichols
Nearly 200,000 square feet of
downtown Denver office space
is off the market with Transam-
erica and Liberty Global mak-
ing the move from the south-
east suburbs.
Transamerica will grow from
about 62,000 square feet in the
Denver Tech Center to 121,000
sf at 1801 California, a rein-
vented office tower in the cen-
tral business district. Liberty
Global, now in about 65,000
sf in Englewood, will occupy
70,000 sf in the Triangle Build-
ing under construction across
from Denver Union Station.
Both companies considered
options in the southeast subur-
ban submarket and elsewhere
before ultimately leasing space
downtown.
“They looked in every single
market,” Tim Harrington of
Newmark Grubb Knight Frank
said of Liberty Global, whose
strategy ultimately took it to the
new building at 1550 Wewatta
St.
“The Triangle Building’s
modern and open architecture
and collaborative office space
are a great fit for us and reflect
what we stand for as a leader in
the broadband communications
and entertainment industry,”
Liberty Global CEO Mike Fries
said in an announcement. “This
move will bring us together
under one roof and provide us
with the best possible working
environment, easy access for
employees and great visibility
in the heart of the city we fond-
ly call the home of cable.”
Harrington, alongwithNGKF
brokers Tom Lee and Jennifer
Chavez, represented Liberty
Global in its lease. Todd Wheel-
er of Cushman & Wakefield of
Colorado represented East West
Partners, which is developing
the Triangle Building.
Liberty Global expects to
move into the space in the third
quarter.
Transamerica will relocate to
1801 California in the fourth
quarter. “We are delighted to
establish a notable footprint
for Transamerica in the heart
of Denver’s financial district,
a reflection of Transamerica’s
long-term commitment to this
community,” said Blake Bost-
wick, chief marketing officer
of Transamerica’s Investments
and Retirement division. “This
landmark property, along with
its premier amenities, will fur-
ther support our growth expec-
tations, enabling us to attract
talented professionals through-
out the metro area and along
the southern and northern cor-
ridors.
Transamerica expects to grow
from approximately 325 to 650
employees in Denver within
the next couple of years. Factors
that led the company down-
town included access to hotels
for large meetings and events
as well as public transportation,
accord to Mike Mathies, senior
vice president of marketing.
There are light-rail stops and
Free MetroRide stops on either
side of the building.
Brookfield completed a $50
million renovation of the build-
ing after buying it for $215 mil-
lion in December 2011.
“Transamerica’s relocation to
downtown from the tech center
reinforces the success of Brook-
field’s effort to transform 1801
California into a market-lead-
ing asset,” said David Stern-
berg, executive vice president
of Brookfield’s Midwest and
Mountain regions. “The opera-
tional improvements and top-
of-the-line tenant amenities
now set the standard for attract-
ing businesses to the area.”
Mike Rooks, JLL senior vice
president and national direc-
tor, and Dan McGowan, JLL
senior vice president, represent-
ed Transamerica in the lease.
Nicholas Pavlakovich of Cush-
man & Wakefield represented
Brookfield.
With other recent leases,
including Molson Coors for
67,000 sf and GHP for 26,000
sf, the building is 73 percent
leased. “We’ve made terrific
progress and we’re thrilled
with the tenancy we have with
the building and the way the
building is being embraced
by the community,” Sternberg
said.
“This deal and 650 employees
coming downtown reinforces
how attractive the CBD is to
significant employers in our
marketplace,” he said. “A lease
like this is really a shot in the
arm for downtown Denver.
“Downtown is doing a lot of
right things. Companies want
to be close to that. They want to
be close to millennials, who are
the future workforce,” he said.
Harrington said he wouldn’t
be surprised if one or two other
large tenants relocate down-
town from the southeast sub-
urban submarket. “The south-
east submarket is still a very
viable market, but if you look
at what’s happened over the
last couple of years, the number
of large contiguous blocks has
decreased dramatically. If a ten-
ant needs a substantial amount
of space, they only have a few
options down there, other than
to do a build-to-suit or go into a
potential spec building.”
The number of large blocks
downtown also is dwindling.
According to NGKF Director of
Research Lauren Douglas, there
are eight Class A office spaces
of 70,000 sf or greater down-
town and 10 in the southeast
suburban office submarket.s
Office
A new entrance and lobby were part of the renovation of 1801 California.
The Triangle Building is being built on the 16th Street Mall, across from Denver Union Station.
Denver office market is likely to
tighten this year with a num-
ber of larger tenants looking,
and in some cases recently sign-
ing leases, for large blocks of
space. Midsize searches (30,000
to 40,000 sf) also will support
demand.
Savills Studley’s report says
office-using employment in
Denver was 4.4 percent above its
prerecession peak as of Novem-
ber 2014, reflecting three years
of sustained economic growth.
“Local companies continue to
expand and a steady flow of
businesses from other markets
has helped boost activity as
well. Expansion largely offset
the reduction in space that a fair
number of companies achieved
by decreasing the amount of
space dedicated to each employ-
ee or by consolidating multiple
operations,” Savills Studley said.
As availability in the central
business district and Lower
Downtown decreased in 2014,
leasing activity spread to subur-
ban markets. s
CoStar Group
UDR is headquartered at 1745 Shea Center Drive in Highlands Ranch.
‘This deal and
650 employees
coming downtown
reinforces how
attractive the CBD
is to significant
employers in our
marketplace.’
– David Sternberg, Brookfield