CREJ

Page 2 — Office & Industrial Quarterly — March 2022 www.crej.com Letter from the Editor W hile the office market still is in a redefining period, there seems to be a renewed sense of optimism about the future of work. The Febru- ary jobs numbers from the U.S. Bureau of Labor Statistics were stronger than expected and built on a solid Janu- ary report. The U.S. added 678,000 non- farm jobs in Febru- ary, and the unem- ployment rate was 3.8%. Despite the omicron spread, the job market appears to be healthy, and joblessness numbers are heading in the right direction to get back to pre-pan- demic levels.While many of these new jobs were in the hospitality and lei- sure sectors, gains also were reported across office-using occupations such as professional and business services, health care and financial companies. However, it’s undeniable that where office-using professionals choose to work has changed, and what once was the normmost likely will never return. According to a LinkedIn poll conducted by CoreNet Global, a mere 16% of respondents said they were expected to be on site five days a week. The majority, 41%, reported expectations of being in the office two to four days a week, while 31% said they were fully remote. The remaining 12% are expect- ed in the office one day a week. These results were mimicked in the Downtown Denver Partnership’s 2021 travel survey, which tracks employee travel behavior. Denver-based employ- ees who responded to the survey are choosing to telework for over 56% of their typical workweek, Monday through Friday, as compared to 5% of their week back in 2019. Within this issue, these shifts are being further explored. Martin Gold- stein, who wrote for the publication in the early stages of the pandemic, revisited his past statements regard- ing remote work and confessed the company has thrived with a structured hybrid format. When people discuss a hybrid work environment, there’s typically a rec- ognition of individual work done at home with collaborative work done in the office. The issue’s cover story iden- tifies ways in which buildings can cre- ate amenity spaces that can help ten- ants entice workers back to the office for these purposes. There also are two articles that explore the push and pull of central business districts. One, written by the Downtown Denver Partnership, explores how the area is building back and the important steps being taken to bring those employees back; while an article fromTranswestern examines what types of companies are moving out of the CBD and where they’re land- ing. We are in an interesting period of wait-and-see in some regards, but I still wouldn’t count Denver out. It feels as if Denver may be at a slow simmer, but the city’s undeniable energy and allure, coupled with the relaxing of pandemic precautions, has me predict- ing that as the weather heats up, the city will reach a rolling boil again. Michelle Z. Askeland maskeland@crej.com 303-623-1148, Ext.104 Redefining the workweek How Denver’s market measures up nationally Eliza Theiss Denver office market trends to watch this year Andy Cullen Tenant activity emphasizes migration from CBD Jack Ellis and Cheryl Casserly Flexibility is king: Confessions of a hybrid convert Martin Goldstein If you think downtown Denver is dead, think again Bob Pertierra Precast efficiency with a single-source supplier Shelley Hartnett Contents 4 6 8 10 12 14 OFFICE INDUSTRIAL 17 18 20 22 24 26 learn more + contact leasing Industrial real estate: The ideal inflation hedge? Nick Rice Frenzied pace continues for industrial investors Alyssa Tomback and Thimy Moraitis Industrial growth explodes in Northern Colorado Joe Palieri Boom or bust: Tracking Boulder County’s activity Jason Kruse Why a healthy economy relies on healthy spaces Sonja Trierweiler Smart industrial: The 4th industrial revolution is here Christine Maynard