CREJ

March 2017 — Office Properties Quarterly —

Page 27

for personal cycling, upgraded

bus systems and more, TODs

complement mixed-use

development by planning

around people rather than

cars.access to a variety of

transportation methods.

Whether that’s fast access to

rail transit, multiple locations

for bike sharing, better stor-

age and upkeep for personal

cycling, upgraded bus sys-

tems and more, TODs com-

plement mixed-use develop-

ment by planning around

people rather than cars.

•

WELL Building Standard.

A new design standard is

rising to accompany LEED

certification. Focused on

occupant sustainability as

opposed to building sustain-

ability (although the two

share similarities), the WELL

Building Standard is a system

of certifications designed to

add structure to the concept

of wellness-oriented facility

planning. WELL buildings are

graded based on their atten-

tion to occupant health and

wellness.

Conceived by Paul Scialla,

founder of the International

WELL Building Institute

and the wellness real estate

company Delos, the building

standard is the first of its kind

that is solely devoted to the

health and wellness of the

occupants. The standard is

administered by the Interna-

tional WELL Building Institute

and is third-party certified

through Green Business Cer-

tification Inc., the same orga-

nization that administers the

LEED certification program.

Where LEED measures

how a building is designed,

constructed, maintained

and operated to certify its

environmental sustainabil-

ity, WELL measures how a

building affects our health

– both the negative and posi-

tive impact on our respira-

tory health, cardiovascular

health, metabolism, comfort

and state of mind. The WELL

Building Standard represents

a new building standard

needed in the marketplace

to address our own work-

place sanity. With the aver-

age American spending 90

percent of his time indoors

and chronic disease on the

rise, perhaps the time has

come that we judge our build-

ings on how they protect and

support our health and well-

being.

CONNECTIONS

THAT MATTER

We are committed to continuous personal and

professional growth, increasing our knowledge

and deepening our relationships with one another,

our clients and our community.

Mira J. Finé

Partner, National Director of Tax Services

mfine@heincpa.com

303.298.9600

www.heincpa.com

DALLAS

DENVER

HOUSTON

ORANGE COUNTY

Slattery

Michael Robinson Photography

The LEED Silver Polsinelli facility offers an on-site nurse’s office and

wellness suite.

Continued from Page 20

This year, rising deliveries

and strong space demand

trends will lure a number

of institutional-grade buy-

ers and large funds into the

office market. Newly stabi-

lized properties and those

priced above $20 million will

pique investors’ attention.

Additionally, as newly built

properties are delivered,

trades in this price tranche

could potentially rise. These

assets typically will sell at

cap rates starting near 6

percent. Private local and

regional buyers will remain

the primary players this

year, chasing higher yields

in the western and southern

submarkets, where first-year

returns are 25 to 50 basis

points above the metro aver-

age.

Finally, given the dimin-

ishing number of value-add

properties available for sale,

investors in search of upside

will seek opportunities in

underutilized buildings near

commuter rail lines.

Continued from Page 4

Smith

see overs, but a pro-growth

agenda could also create too

many overs that could drive

another recession.”

A “Trump bump” in the

first two years of the new

administration’s implemen-

tation of pro-growth policies

allowed Phyllis Resnick with

the Colorado Futures Center

to predict gross domestic

product growth to 3 percent

this year. However, this new

growth and continued low

unemployment brings pres-

sure of increases in prices,

demand for higher wages,

inflation and interest rate

hikes.

“We can’t grow at those

outside rates forever,” said

Resnick. “Over time, the

stimulative policies [Presi-

dent Trump] is proposing,

such as tax cuts and infra-

structure spending, will

put a natural break on this

growth.”

While there is no recession

in the forecast, the prob-

ability of one in the next two

to three years is higher, said

Resnick. Another pressure

point for Colorado is hous-

ing, with 59 people needing

new housing every day.

The state’s 1992 TABOR

amendment will play critical

role in Colorado’s ability to

pay for services as the state

ages. As the economy grows,

it’s expected to exceed popu-

lation plus inflation, which

will increase TABOR-related

tax refunds to grow up to 18

percent, or $600 per capita

by 2035. While attractive to

tax payers, the general fund

and its largest budget items

such as K-12 school funding

will suffer. Combined with

the expectation that, under

our constitutional measure

that limits property tax, the

state will see significant

decrease in property taxes,

from 7.96 to 6.5 percent

in coming years – adding

another drain on the general

fund budget. This affects the

state’s ability to pay for pro-

grams at county, district and

state levels.

The metro north also is

experiencing unprecedent-

ed development, mainly

spurred from the expansion

of public transportation.

“FasTracks is the biggest

driver in a change of lifestyle

and change in who wants

to live here,” said Barry Gore

from Adams County Eco-

nomic Development. “It’s a

very dynamic and exciting

time in the metro North

region with many opportuni-

ties and challenges on the

horizon.”

Monroe

Continued from Page 14