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Page 20 — Office Properties Quarterly — June 2017
Leasing Insights
D enver’s affinity for open
space defines much of our
culture, attracting those
who appreciate the meld
of city and outdoor living.
The influx of new talent choosing
Denver continues to drive the resur-
gence of development throughout
the city. And what’s being devel-
oped is swiftly adapting to our
changing workforce and Denver’s
unique landscape.
I see this dynamic evolution first-
hand through my work representing
tenants seeking local space. As our
industries and companies continue
to evolve – chiefly to attract and
retain talent – the pendulum finally
swung from the traditional to the
modern workplace.
Since people are working differ-
ently now, companies of all sizes
are rethinking how to support these
changes, and it’s no longer just the
progressive, early stage technology
companies. Firms increasingly are
redesigning their spaces to contain
fewer private offices and cubicles
with more open and collaborative
areas.
Competition for talent is the pri-
mary motivator triggering this shift.
No matter the industry, technol-
ogy has transformed people and
operations. As companies build out
their IT capabilities, allowing 24/7
connectivity from anywhere with
internet access, requirements in the
type, size and functionality of space
have all been impacted significantly.
Finding the right balance is the
key. With the development and
implementation of a workplace
strategy, a true
understanding of a
company’s culture,
operations and
goals can be the
basis of how its
space is developed.
Ideally, a new or
redesigned work-
space supports
employees’ well-
being, creativity
and engagement.
We had this in
mind when we
recently relocated
our Denver office
from 1515 Arapa-
hoe Street to 1401
Lawrence Street,
overlooking Larimer Square. As we
do for clients, we focused on how
to best accommodate amenities
important to our people with an
open-space concept. Attention was
devoted to ensuring we included
the various space types needed for
our people to thrive, which includes
well-placed breakout and meeting
rooms lining the inner wall of open
office space.
This focus on workplace strategy
has become more commonplace,
and it’s an important consideration
for tenants seeking to revitalize or
secure space.
I recommend that my clients
always start with a budget, because
not everyone is going to invest more
than $100 per square foot on ten-
ant improvements, furniture, audio/
video and technology. There’s a
trend toward creative, collabora-
tive space but, at the end of the
day, it’s not cheap to do, especially
if it involves new equipment and
furniture. Once a client has defined
budget parameters, we look at what
can be done.
Construction costs have continued
to escalate. Since 2010, TI construc-
tion costs are up 50 percent, and
currently there is 3.7 million sf of
office construction underway in
Denver. This affects corporate ten-
ants because the supply of quality
move-in ready office spaces is lim-
ited in a market with 10.8 percent
direct vacancy, making TI build-out
projects increasingly necessary.
Landlord TI allowances don’t always
cover full TI project costs. Conse-
quently, corporate tenants can be
faced with capital expenditure costs
to complete their interior construc-
tion projects. It’s a study in running
all the numbers, weighing those
variables and boiling it down.
Then it’s time to get creative with
the office space and ways to go from
there. We look at the bells and whis-
tles available – the cool things com-
panies can do – while being smart
on how we design the space and
ensuring fluidity in the layout.
We also consider why people love
Denver, its spectacular vistas and
natural amenities. Connectivity
to the outdoors is important here,
which translates into proximity to
parks and trails, bicycle conveniences
Your Tenant Finish Experts
Please visit our Website:
(303)573-6294
Enjoy the Experience. Love the Results.
Steve
Billigimeier
Executive
managing director
and executive
board member
of the National
Tenant Advisory
Group, Cushman &
Wakefield, Denver
Russ Pence, Core Cinepix
Cushman & Wakefield recently moved to a new office, 1401 Lawrence Street, and
designed the workspace to supports employees’ well-being, creativity and engagement.