CREJ

September 2018 — Office Properties Quarterly — Page 27 www.crej.com READ THE NEXT EDITION: Thursday, May 17 RESERVE YOUR SPACE BY: Wednesday, April 27 AD SIZES: Quarter Page $XXX Half Page $XXX Full Page $XXX Full Color $200 Additional Frequency Discounts Available. While the Colorado Real Estate Journal continues to run an office news section in each issue of the newspaper, Office Properties Quarterly features the most interesting projects and people, trends and analysis, and covers development, investment, leasing, finance, design, construction and management. The publication is mailed with the Colorado Real Estate Journal newspaper, a 4,000-plus distribution that includes developers, investors, brokers, lenders, contractors, architects and property managers. ardwhen considering cost viderRegus,whichwas founded 25 years ago andhas 20 locations ug-and-play Photo courtesyThriveWorkplace ing to embrace private offices and private desks,aswell as community areas and open desks. October 2015 The evolution of co-working in Denver  Market Reports  Development & Investment Updates  Design & Construction Trends  Capital Markets  Corporate Real Estate  Legal Updates  and more ADVERTISING Lori Golightly | 303-623-1148 x102 | lgolightly@crej.com SUBMIT EXPERT ARTICLES Michelle Askeland | 303-623-1148 x104 | maskeland@crej.com MEDIA KIT & SAMPLES crej.com/OfficeProperties Wednesday, December 19 November 28 395 595 995 • Commercial real estate. The addi- tion of 42,000 net new jobs in metro Denver in 2018 provides the momen- tum for the continued expansion of the commercial real estate markets. Although the three main market types generally have posted rising vacancy rates in the first half of 2018, increasing lease rates and low levels of sublet space have created an environment conducive to brisk construction activity. Current data suggest that momen- tum in the office market may be slowing slightly, although the demand for large blocks of space still is high. The second-quarter direct vacancy rate of 10.1 percent is higher than the same periods in 2016 and 2017, according to CoStar data. The average lease rate rose 2 percent over the year, which was slower than the 2016 and 2017 increases. Based on projects cur- rently under construction with an expected 2018 delivery date, a total of 4.4 million square feet will likely be added to the market in 2018, up from the 3 million sf delivered in 2017. The second-quarter direct vacancy rate for industrial space was 4.5 per- cent, which is higher than the 2016 and 2017 rates. Approximately 6.9 million sf of industrial space will be added to the metro Denver market in 2018, a new record for industrial completions in one year. While about 2.4 million sf of space to be complet- ed is for Amazon, the large amount of space that will be added to the market likely will slow the construc- tion momentum heading into 2019. Some analysts describe metro Denver’s retail market as being in equilibrium, with a relatively stable vacancy rate of 4.5 percent and a consistent level of new construction. About 1.6 million sf likely will be added to the retail market in 2018, the same amount that was added in 2017. While most economic indicators continue to improve at a steady pace, there are signs that momen- tum is slowing in a few facets of the economy. Most notably, home sales activity is slowing due to rap- idly rising home prices and limited new supply. Commercial real estate markets are generally sound, with a few signs of caution in some market types. On the other hand, the momentum continues in con- sumer spending, which has largely supported overall economic activ- ity. Employment still is expanding, although labor supply constraints and international trade concerns are influencing the pace of growth. ▲ Silverstein Continued from Page 4 attracted a diverse business environ- ment from local startups to corporate headquarters. The U.S. 36 corridor and Broomfield are home to more than 20 corporate, national and regional head- quarters, with a high concentration of technology and research development, including Level 3 Communications, Oracle andWebroot. Interlocken Business Park is a 963- acre advanced technology park that includes more than 3.7 million sf of commercial and mixed-use develop- ment. Interlocken’s high concentra- tion of top technology and telecom- munication tenants has helped draw positive comparisons with Northern California’s SiliconValley given its attractiveness to a young and innova- tive workforce, quality of life, as well as its proximity to the city of Boulder and the University of Colorado, the intellectual and venture capital hub of the state. Surrounded by extensively landscaped parks and trails and easy access to Colorado’s Front Range, the area provides employers with an exceptional work-life balance capable of attracting national recognition to its unique location. Our acquisition is prominently located within Inter- locken and has frontage along U.S. 36. Recently, Regional Transportation Dis- trict’s light-rail system began servicing its B line, connecting Union Station in downtown Denver toWestminster, just south of Broomfield. Plans call for the extension of the line to Boulder and Longmont upon further funding. One of the proposed light-rail stations (Flat- iron) is located adjacent to the Inter- locken Business Park. ▲ Glomb Continued from Page 12 specialty lighting in reception and con- ference areas, LED lighting throughout the space, feature walls with wood, stone or plant life, quartz countertops in fan-favorite breakrooms, and even a partially open plenum in certain pockets of any given market. Speak- ing of break rooms, employee recruit- ment and retention can hinge on how well those spaces are upgraded and marketed by the landlord and leasing team. “Break rooms are focal points today,” Bradley said. “There’s no stigma associ- ated with kitchens anymore. There’s no need to hide it. Those spaces are open and inviting with various types of seat- ing to encourage socialization.” As a recruitment tool, tenants can win big by selecting spec suites loaded up with upgrades, while owners can win by ultimately retaining those ten- ants. On the other hand, most spec suites must appeal to the broadest range of potential tenants, so landlords must determine what common features among a spec suite inventory will con- sistently attract the most attention. Only a very small percentage of spec suites – or “tech” suites – in metro Den- ver appeal to tech startups and their ilk, dead set on the open-plan, open plenum experience. The vast major- ity of potential tenants seek relatively modest spec spaces with upgrades appropriate to their particular culture and operating methodology. For smaller tenants, navigating the traditional leasing market is a caution- ary tale, even with competent repre- sentation. Barriers can be difficult to overcome. Municipal building depart- ments are backed up. It just takes too long and costs too much to find the right space, let alone the waiting and watching as it gets designed and built out.While this is an oversimplifica- tion, the core argument favoring the spec suite is sound. And these types of spaces continue to flourish even as building owners stretch their spec pro- grams across full-floor and multifloor vacancies. “Spec suites here have been very effective, very well-received,” Bradley said. “It’s a timing thing and a cost thing.With a good spec inventory, landlords can control costs and have product available when tenants need it. It’s all about demand, and demand is very, very strong.” ▲ Winter Continued from Page 15