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March 18-March 31, 2015 —
COLORADO REAL ESTATE JOURNAL
— Page 13C
D
owntown Denver currently
has a total of 35 million
square feet of existing office
space. The direct vacancy rate is
almost at a record low of 9.7% and
net absorption as of fourth quarter
of 2014 was 247,184 square feet.
With vacancy rates dropping, the
market is responding not only with
increasing lease rates of $31.16
sf from $24.35 in 2012, but also
by constructing additional office
space. A total of 2.3 million square
feet of new space is currently under
construction, planned or proposed
throughout Downtown Denver.
The strengthening office market
fundamentals are also resulting
in additional investments in
commercial real estate in the
Central Business District. Over the
past 12 months there have been
a total of 8 office buildings sold
representing a total of over 1.9
million square feet and a sales
volume of over $557 million.
Currently there is a strong
concentration of new development
in the area surrounding the historic
Denver Union Station (DUS). The
newest office projects to be built
in Downtown Denver are the north
and south wing buildings flanking
the historic station building. They are
the 5 story, 102,000 square feet
IMA headquarters and One Union
Station, another 5 story, 110,000
square feet project.
Additional projects currently under
construction or planned in the DUS
area include 1601 Wewatta, a 10
story, 300,000 square feet building,
The Triangle Building, an 11 eleven
story, 200,000 square feet office
tower, Union Tower West, the
100,000 square foot office space
component of a mixed use project,
and 16 Wewatta, a 5 story, 50,000
square foot building.
With almost all of the DUS
parcels under various phases
of construction, developers
are beginning to look for other
opportunities for investment. There
are additional projects planned or
under construction in other parts
of Downtown including 1401
Lawrence, a 22 story, 310,000
square foot tower, Z Block, a 6
story, 260,000 square foot project
and one of the tallest office towers
to be built in Downtown in 20 years,
1144 Fifteenth St, a 40 story,
640,000 square foot tower that will
break ground in spring of this year.
Image courtesy of Hines, HOK and Jordan Perlmutter & Company
1601 Wewatta, a 10 story, 300,000 square foot office building under construction in the Central Platte Valley/Denver Union Station neighborhood scheduled for completion in 2015.
Images courtesy of The Nichols Partnership and Open Studio Architecture
Galvanize Denver Platte, a 4 story, 76,000 square foot office building under construction in the Central Platte Valley neighborhood scheduled for completion in 2015.
1601 Wewatta
Galvanize – Denver Platte
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