CREJ - Office Properties Quarterly - October 2015

Recession gives time to reevaluate office needs

by Michelle Z. Askeland


During the Great Recession, Lincoln Property Co. halted plans for an office development at Colorado Boulevard and Interstate 25. After the markets recovered, those involved say the project benefited from this hiatus. The project’s goal evolved from enhancing the office environment at the upcoming transit site to the current goal of making the site a 24/7 balanced mix of uses that still capitalized on the active transit site.

“The Great Recession had a silver lining as far as this project is concerned,” said Collin Kemberlin, AIA, LEED AP, principal with Tryba Architects. “It allowed us to get back to a conversation of what really is worth investing in, what really holds its value, and what people find important and exciting about the places where they live, work and play.”

Lincoln Property Co. acquired the 12 acres of land at 2000 S. Colorado Blvd. in January 2006. At the time, the site was a quasi-suburban office park with three Class A office buildings, a Dave & Busters and United Artists Colorado Center Stadium 9 and IMAX, as well as several surface parking lots.

Immediately after acquiring the land, Lincoln, along with partners Tryba Architects, ASB Real Estate Investments and JE Dunn Construction, began a rezoning campaign to change the site to a transit mixeduse zone. The southeast corridor of the light rail was set to make Colorado Center a major light-rail station and above-ground bus transfer facility.

The initial plans for the complex called for another large office building at the center of the site, with some retail on the ground floor and along a main street, which would connect the parking lot and the office building, Kemberlin said.

However, in 2008, the market turned and Lincoln Property Co. decided to table the plan, said Scott Caldwell, Lincoln Property Co. senior vice president. Once the market bounced back, the plans were redesigned with a new emphasis on creating an urban environment that remained active well after the workday ends.

In August, the first phase broke ground. The project now includes 210,000 square feet of Class AA office building with covered parking – about 100,000 sf less office space than originally planned; 205,000 sf of residences – originally not planned for the first phase; and 40,000 sf of main street retail – substantially more than planned originally.

“What came to the forefront in the reboot of the project was the importance of adding a residential component to Phase 1,” said Kemberlin. “It became clear that the office and the retail would not be as successful, the main street would not be as successful, if it shuttered its doors at 5 p.m. We needed the 24/7 activity that residential uses would bring to keep the retail and entertainment going. To allow people to live on the site was a game changer.”

Kemberlin refers to the unique nature of the site – not quite suburban, but also not fully urban. Finding a balance that embraced the urbanization of the area while still offering nods to suburban comforts was a balancing act.

The recession also allowed investors to reexamine what was important to the project. Rather than looking for a quick build and sell, investors acted as long-term visionaries who acknowledged that the main street and retail, which might not speak to the bottom line of the office property, would help command higher office rents and attract the eye of tenants looking for Class A property, he said.

All of these changes were prompted by observing the evolution of what people want, including the way people office in space from a density standpoint as well as what they say is important, said Caldwell.

“I think the way people are looking for convenience has evolved – so walkable amenities, multiple opportunities for transit and their commuting patterns have changed over time,” he said. “A lot of what we’re designing is catered to address those demands and needs that we see today that have accentuated over time.”

Design Changes


In addition to changes in cultural demand for transit options and a strong work-live-play environment, the office design changed in several significant ways between 2008 and 2013.

First, the office building’s positioning changed within the site, and it is smaller. But, although the building is now smaller, the volume of each floor should feel larger because the ceiling heights were increased and there’s more glass in the design. The overall feel of the building also evolved, from one that used a lot of heavy materials –granites, marbles, woods – to convey permanence to the new design that reflects a sense of hospitality.

“It’s very important to our clients that the lobby be a place they could invite people in to hang out,” Kemberlin said. The kinds of things that would have caused a generation-ago office manager to shudder– such as bringing in food or meeting for coffee in the lobby – are now sought after, which is a good change, he said.

Rather than a traditional dropped ceiling, the building will feature an open-ceiling concept without acoustic ceiling tiles to give a view of the precast concrete structure, showing off the mechanical, electrical and fire sprinklers. And an effort to increase light and openness within the suites embraces the collaborative designs that are dominating offices today, said Kemberlin. One of the biggest changes within the past five years is the increased importance of outdoor spaces.

“A few years ago you couldn’t say you were Class A if you were not pursuing LEED Gold,” said Kemberlin. “These days, you can’t say it if you don’t include some nod toward getting people outdoors. That’s essentially a requirement now. These features are expensive, but well worth it, especially if they can generate revenue for the landlord.”

The office building will now feature several balconies, a wraparound exterior deck for the lowest office floor, and a 4,000-sf community indoor/outdoor area on the rooftop. The area will be used for office functions, as well as catered events like weddings and parties.

The definition of must-have amenities also is shifting as tenants place more importance on what is available around the office versus only what the building itself houses. This shift increased the importance of the retail space, which now plans to be less reliant on retail chains and more reliant on local and regional flavor.

“We’re investing more on the outside of the building for the benefit of the people on the inside,” Kemberlin said.

While Lincoln Property Co. was attracted to this site from the beginning to achieve a well-balanced mix of properties at a busy transit center, the five-year hiatus let the team recognize how to best capitalize on these goals, which required embracing a 24/7 environment immediately, rather than further down the timeline.

“You cannot overestimate the value of people living on the site, which has never happened in the site’s history and will help rebrand Colorado Center,” said Kemberlin. “RTD has embraced this concept, the equity in Washington, D.C., has embraced the concept and the city has embraced this concept. We’ve been able to envision the project as it was originally intended.”