Page 10
— Office Properties Quarterly — January 2015
I
believe downtown’s thriving
economy over the past few years
has impacted top-tier law firms,
who are committed to recruiting
and retaining the best-in-class
professionals in the region.
Home to more than 17,500 resi-
dents, downtown Denver has flour-
ished over the past decade, witness-
ing a 142 percent residential spike
since 2000. This drastic residential
growth naturally resulted in a preva-
lent boom in business.
Between late 2009 and mid-2013,
office vacancy in downtown Denver
fell sharply from a high of 18.3 per-
cent to 13.8 percent. With employ-
ment levels rising 4.5 percent and 1.4
percent in the first quarters of 2013
and 2014, respectively, office vacan-
cies fell by an additional 1.2 percent-
age points between the third quarters
of 2013 and 2014.
With more than 27 million square
feet of office space and an additional
2,526,000 sf of office space cur-
rently planned or under construction,
downtown Denver has the capacity to
handle this spike in business and is
attracting the young talent needed to
sustain such growth.
As working professionals drive
31 percent of downtown Denver’s
economy, I’d like to take a closer look
at the movement and activity in the
commercial real estate sector – par-
ticularly the traction and success I’ve
noticed involving law firms.
Only a couple of years ago, many
law firms would be reluctant to sign
long-term leases or expand in more
locations. Now law-firm transactions
downtown, includ-
ing seven deals
we’ve closed over
the past year and
a half, all suggest
that law firms are
an imperative com-
ponent to the com-
mercial real estate
landscape.
Recently ranked
by Forbes as No. 4
best place for busi-
ness and careers,
the city’s high qual-
ity of life, relatively
affordable living costs and favor-
able environment for job seekers is a
major draw for millennials between
the ages of 20 and 34. This increase
in a younger, talented workforce
drives competition up among law
firms, encouraging them to consider
newer spaces that are convenient to
public transportation and offer better
amenities to attract the talent. Firms
are taking advantage of various con-
cessions and amenities along with
the significant abatement paired with
long-term leases in newer develop-
ments or redevelopment projects.
Two major downtown construction
projects help reinforce the growth of
the market and suggest why top-tier
firms are finding opportunities to
maximize on the thriving economy.
The law-firm leasing activity at
1401 Lawrence St. and 1801 Califor-
nia St. further substantiate the notion
that law firms will continue to serve
as important anchor tenants, even in
new developments.
The development at 1401 Lawrence
St. is a 290,000-sf, 21-story office
tower with ground-floor retail and
347 parking spaces. Polsinelli signed
a long-term lease for 86,664 sf of
space at the property, becoming the
first significant tenant to commit
to the development. Polsinelli will
move from 1515 Wynkoop St. and
will gain parapet Interstate 25-facing
signage at the new location, which is
extremely important to the firm. This
trend of brand recognition impor-
tance is an indication that recruit-
ment and retention are becoming
integral components in firms’ busi-
ness strategies in the upswing of the
city’s economy.
1801 California St., the former
Qwest Tower, is undergoing a state-
of-the-art redevelopment. It has
successfully recruited big name law
firm tenants, such as BakerHostetler,
Butler Snow, Fairfield and Woods PC,
and Merchant & Gould PC. Combined,
these firms have leased 118,065 sf
over the past 18 months.
The Wells Fargo building, how-
ever, was able to retain clients with
enhanced concessions and abate-
ment packages in order to stay rel-
evant in the market. Faegre Baker
Daniels LLP, Spencer Fane & Grim-
shaw LLP, and Fennemore Craig
renewed last year for 96,000 sf on
floors 31-34; 23,678 sf on the 20th
floor; and 18,000 sf on the 24th floor
of the property, respectively.
Additional law-firm activity in
Lower Downtown includes the recent
renewal and restructuring for Ritse-
ma & Lyon PC for 22,181 sf of space
at 999 18th St. The firm was offered
an attractive concessionary package
by the landlord in order to compete
with nearby buildings. A new lease
also was signed for MiletichCohen PC
for 5,415 sf at 1660 Wynkoop St.
These examples signify the
strength and growth of Denver’s
market and confirm the need for
outstanding concessions and rapidly
improving packages for tenants as
regional and local law firms continue
to compete for top talent and dynam-
ic workplace environments.
s
Top-tier law firms commit to downtown DenverCentral Business District
Robert Link
Executive vice
president and
branch manager,
Savills Studley,
Denver
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Offer your clients
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With more than 27
million square feet of
office space and an
additional 2,526,000
sf of office space
currently planned or
under construction,
downtown Denver has
the capacity to handle
this spike in business
and is attracting the
young talent needed to
sustain such growth.