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September 2019 — Office Properties Quarterly — Page 23 www.crej.com COLORADOSYMPHONY.ORG O C T O B E R Tchaikovsky Symphony No. 4 conducted by Brett Mitchell OCT 4-6 FRI-SAT 7:30 Q SUN 1:00 Brett Mitchell, conductor Jason Shafer, clarinet The Goonies in Concert OCT 11 FRI 7:30 HalfNotes Christopher Dragon, conductor MPAA Rating: PG © 1985 Warner Bros. Inc. All Rights Reserved . Music of Selena OCT 12 SAT 7:30 Christopher Dragon, conductor Isabel Marie Sánchez, vocalist Dvořák Symphony No. 7 OCT 18-20 FRI-SAT 7:30 Q SUN 1:00 Alexander Shelley, conductor Cicely Parnas, cello Verdi Requiem – 35 th Anniversary Celebration Colorado Symphony Chorus OCT 26-27 SAT 7:30 Q SUN 1:00 Brett Mitchell, conductor Amber Wagner, soprano, Jennifer Johnson Cano, mezzo Issachah Savage, tenor, Aleksey Bogdanov, baritone Colorado Symphony Chorus, Duain Wolfe, director N O V E M B E R Disney in Concert: Tim Burton’s The Nightmare Before Christmas NOV 1-2 FRI-SAT 7:30 HalfNotes Christopher Dragon, conductor Presentation licensed by Disney Concerts. ©Disney. All rights reserved. MPAA Rating: PG Halloween Spooktacular! NOV 3 SUN 2:30 HalfNotes Bertie Baigent, conductor Mozart Symphony No. 40 NOV 8-10 FRI- SAT 7:30 Q SUN 1:00 Douglas Boyd, conductor Jeffrey Kahane, piano Renée Fleming - The Brightness of Light- Colorado Premiere NOV 15 & 17 FRI 7:30 Q SUN 1:00 Brett Mitchell, conductor Renée Fleming, soprano Rod Gilfry, baritone Tchaikovsky Violin Concerto NOV 22-24 FRI-SAT 7:30 Q SUN 1:00 Brett Mitchell, conductor Angelo Xiang Yu, violin Home Alone in Concert NOV 29 FRI 7:30 HalfNotes Brett Mitchell, conductor Colorado Symphony Chorus, Duain Wolfe, director MPAA Rating: PG Aretha: A Tribute NOV 30 SAT 7:30 Christopher Dragon, conductor Capathia Jenkins and Ryan Shaw, vocalists 2019/20 season presenting sponsor also supported by HalfNotes Please join us for family-friendly activities 1 hour before the concert. These performances include FULL SCREENING OFTHE FEATURE FILM! termed a trend 10 years ago, it has now become a paradigm shift and one that bodes well for the Denver office sector long term. According to analysis con- ducted by LendingTree, Denver saw an influx of nearly 1,500 newmillion-dol- lar-plus businesses from 2014 to 2016, an 8.6% jump. Demand for Class A space in down- town and the surrounding neighbor- hoods remains high, continuing to sig- nificantly outpace the national average. According to CoStar, the rents in the central business district, Central Platte Valley and Lower Downtown submar- kets grew an aggregate 6.9% year over year fromAugust 2018 to 2019. While this type of growth cannot con- tinue indefinitely, it speaks to the desire and willingness to pay a premium for a premium location. Tech demand is helping to drive sup- ply in Denver, primingThe River Mile to capitalize on its central location and thrive. Furthermore, developer Revesco Properties is well-positioned to see the project through even if the market should cool off. Revesco bought the land and the amusement park in 2015 and has found a capital partner in Stan Kroenke. Revesco also plans to tackle the project in stages. After environmental remediation and river improvements, Phase I focuses on redeveloping the park’s 17-acre parking lot, which will yield around 4 million square feet of rentable space, two-thirds of which are slated for office use. Along with courting tech tenants, Revesco hopes to attract an anchor tenant in excess of 250,000 sf.There are only a handful of companies of this scale locally, which is why it will be impera- tive that Revesco look beyond Colorado to lure a tenant of this size and magni- tude. It’s an ambitious undertaking, and one that, if successful, would have an enormous impact on the office sector and Denver as a center of commerce. Revesco has already begun to search both domestically and internationally for a candidate and plans to use this preconstruction period to strategize about how best to identify and pursue a Fortune 500 enterprise whose real estate needs align with Revesco’s vision. It appears that The River Mile likely will not deliver in time to benefit from the current growth cycle, already the longest economic expansion period in U.S. history. However, given the changes in Denver in the last 10 years, Revesco feels confident in playing the long game with the project, knowing it has the ability to transform the city if done cor- rectly. More so than in RiNo, where rede- velopment has largely occurred on a building-by-building basis,The River Mile also has the opportunity to create truly a new downtown neighborhood, one in which its residents and office tenants will benefit from a prime riv- erfront location; parks, open space and public amenities; an array of mobility options anchored by two existing light- rail stops; and cutting-edge technology. WithThe River Mile, Revesco has an opportunity to shape the next genera- tion of mixed-used development, and it will be fun to see how the project mate- rializes. ▲ Stamp Continued from Page 1 outpace overall employment growth this year, fostering the continued evo- lution of the office market as compa- nies reshape working trends to align with primary talent pools. STEM sec- tors will be the main engines behind this movement. Construction will match its cyclical high this year as 86 million square feet is delivered. A host of primary markets headline the top construction metros this year, with NewYork City, Dallas/ Fort Worth,Washington, D.C., and Seattle leading the way. Several secondary and tertiary mar- kets will also witness strong devel- opment as the extended cycle has produced increased economic growth, translating to urban renewal efforts in these smaller cities. Charlotte, North Carolina; Nashville, Tennessee; Phoe- nix; and Salt Lake City exemplify this notion, bringing more white-collar jobs into their central business dis- tricts and providing a rejuvenated urban feel. National vacancy is scheduled to remain on a decline this year, dipping 10 basis points to 13.2%. This reading still sits 100 basis points above the prerecessionary market, suggesting room for more growth. Demand for suburban space will drive this trend as the suburban vacancy rate has dropped 180 basis points to 13.4% over the past five years. Sustained modest supply growth will keep rental gains stable this year, driving the average asking rent up 2.3%. This cycle’s rent trends are showing more regularity than the pre- vious expansion as downtown areas in many of the nation’s smaller metros and tech-heavy markets remain key drivers of overall growth. Tight prima- ry markets like Oakland and San Jose, California, will post growth rates above 6%, while high-growth secondary met- ros including Charlotte and Phoenix are also expected to log strong gains. Smith is director, Healthcare Real Estate Group, and director, National Office and Industrial Properties Group, with Marcus & Millichap . ▲ Smith Continued from Page 2 and a cause for declining consumer confidence. The global economy has shown signs of slowing as well, amplified by tariffs between China and the U.S., and global bond yields shrinking by the day. This can become a spiraling cycle as consumers become more frugal in the face of a possible recession, which leads to less spending, which leads to a slower economy, which can lead to rising unemployment, etc. It is our opinion that we have been operating in a responsible economy during this recent run-up. The com- mercial real estate industry has been displaying discipline and careful risk assessment. Lending practices are conservative. What is it that we are so certain of as an economy that could lead to a recession? What actions or thoughts will lead us down that dark path? Our only conclusion is that our memory of the past is too vivid. The market universally believes we are heading for a recession, which may in fact be the self-fulfilling prophecy that leads us there. ▲ Hendrickson Continued from Page 6