Colorado Real Estate Journal - March 18, 2015
Downtown Denver is currently experiencing one of the most dynamic and active development cycles in its history. Cranes tower across the city’s skyline and there is an unmistakable feeling of energy and vibrancy on almost every corner. Approximately $1.87 billion is being invested in over 34 private and public projects in the Central Business District and throughout Downtown’s city center neighborhoods. Combined this investment will continue Downtown’s growth and make it an even more attractive place to build, live, work, stay and play. While these projects vary in use, density and scale, each one is different and when completed will contribute in its own way to the city’s overall economic vitality. Two unique features of this development cycle are the diversity of the types of projects and where they are located geographically. This will result in an outcome that provides more sustainable land use and at the same time delivers financially successful developments. Developers have analyzed historical trends and past development cycles and are using the lessons learned as a lens as they evaluate new projects to ensure they are responding appropriately to our markets’ current demand for additional space. One of the macro trends fueling this development is that for the first time in this country’s history, the majority of the population lives in cities. Leading this charge are the nation’s two fastest growing demographic segments: baby boomers (born 1946-1964) and the millennials (born 1981-2000). The millennials, seeking work-life balance, short commutes and compact communities, wish to be near cultural, social and convenient amenities. They are looking for accessible education, recreation and cultural amenities; smaller workplaces with open spaces for creative interaction and meetings; close proximity to transit; and compact communities. Employers are beginning to realize that millennials – their future workforce – want to work in urban centers located close to where they want to live. Strategically-minded companies are looking to return to downtowns as part of a recruitment plan to attract the best and brightest of the future workforce. Denver appears to be well positioned to reap the economic benefits of the millennial generation and its desires. According to a recent report by the Brookings Institution, in 2013, Denver was ranked as the number two city in terms of attracting the future workforce from around the country to live and work.