CREJ - Office Properties Quarterly - January 2015
Over the years, many cities have seen shifts to their central business districts, especially in regard to the area known as the “100 percent-- location.” This location is also known as the 50-yard line or Main and Main. Denver’s office CBD has shifted over the last 30 years. The traditional 100 percent location generally was thought of as Denver’s city center location at 17th and California streets. The majority of the office building inventory in this location was constructed during the late 1970s and early 1980s. In the mid-1980s, the 100 percent location shifted west to 17th Street and Lawrence Street after the completion of 17th Street Plaza and the Tabor Center complex. The addition of the baseball stadium brought numerous restaurants and entertainment facilities. Tenants wanting to attract younger employees decided to push further west to this area and many office buildings were constructed in the late 1990s through today. The red outline on the map indicates the shifted 100 percent location, while the blue outline represents the old location. When the Denver Union Station redevelopment was announced in the early 2000s, more development was proposed both adjacent to and behind the station. These buildings typically were LEED-certified, state-of-the-art properties. In the Denver CBD, the revitalization of Union Station had a dramatic impact on the movement of the 100 percent location. In return, many developers and investors constructed new product in and around Union Station. A few pioneering developers were early to the party and invested in this area, because they understood that upon renovation completion, the area would be attractive to tenants. This foresight paid off. Denver Union Station re-opened this year as a multimodal transportation hub offering new restaurants, nightlife, office space and a boutique hotel. Further, with easy access to light rail, train and bus transportation, tenants, visitors and business customers can quickly access Union Station. When the east rail line is completed in 2016, it will provide direct access to Denver International Airport. This area captured record-setting office sales, low vacancy and some of the highest rental rates in the marketplace.