CREJ

N ever in their lives have cor- porate real estate strategists faced such an extravagant global phenomenon. Unfortu- nately, those who don’t learn quickly and fail to look ahead are now forcing their companies to be left behind. The fact that normal life is once again resuming has shaken awake tenants “kicking the can” on major lease decisions. Conversations on corporate real estate strategy have only grown through 2021, particularly following Gov. Jared Polis’ revocation of the mask mandate for most indi- viduals in mid-May. We’ve seen the likes of Goldman Sachs, Google, Amazon andWells Fargo announce nation- wide plans to return to the office as early as this summer. The rising tide of consumerism and in-person spend- ing is ushering in the necessity for all hands on deck. Insofar as office space occupancy goes, the much- anticipated return to normal (and not a “new normal” as many work-from- home zealots have prayed for) is com- ing fast, whether tenants are ready or not. Following the yearlong winter of 2020, when much of the global office market struggled, quarterly metrics have since improved. Absorption in the Denver metro area, which saw a low of negative 1.7 million square feet in the fourth quarter of 2020, is dwindling quarterly to the upside. While large Class B commodity space continues to struggle, the market’s quality Class A space has seen con- sistent interest. Today’s lower cur- rent effective rates have been a boon for tenants seeking to affordably enhance the look and feel of their office space, especially in anticipation of their employees returning to work following many months of working from home. These spaces are being secured with above-market conces- sions, greater tenant improvement allowances and a generous amount of free rent – sometimes as much as 1.2 months per year of the lease term or INSIDE Construction costs PAGE 10 Tenant improvement projects are complex and expensive, and timing is critical Thevin Campton, CCIM Broker, office capital markets, Colliers International Market faces strong resurrection potential following yearlong winter June 2021 PAGE 14 PAGES 23-36 Workplace trends Companies must address these three considerations as they plan their office return Industrial section Highlights on sales and construction activity, market statistics, financing trends and more Please see Page 16 For the time being, COVID-19 has flipped the market on its head and quickly turned a landlord’s market in favor of tenants. This won’t last long. The tides are changing, and the much-anticipated return to normal is coming fast, whether tenants are ready or not.