Colorado Real Estate Journal - June 1, 2016
With growth taking off across the Denver metro area, there’s a city flying well above the radar. Companies large and small are discovering that Centennial is the place to land, and they are investing accordingly. The commercial development boom – in conjunction with a rise in housing and employment opportunities – has centered on the city of 107,000, generating significant buzz in the Denver South region. Several major projects are underway and more are on the horizon in the latter half of 2016, building upon a sturdy foundation of nearly 4,600 business that already call Centennial home. The 42-acre Jones District, a mixed-use development that includes plans for 1.8 million square feet of office, retail, and residential, is expected to break ground this year on its first phase. The transit-oriented development will link to the RTD Southeast Light Rail line’s Dry Creek Station through a new pedestrian connection currently under construction. Work began recently on a 227,000-sf, $45 million office building for Arrow Electronics in the Panorama Corporate Center, near I-25 south of Dry Creek Road. Multiple office expansions are also underway in Centennial, including INOVA, which includes a 212,000-sf office building at the northeast corner of Havana and Geddes, and 2016 has already seen an influx of dozens of smaller businesses, including new microbreweries. These companies have found a home in Centennial. The question is: who will be the next to make their mark? All the Right Pieces The flourishing business landscape is due to the fact that Centennial possesses the right ingredients for success. It’s served by Centennial Airport, the second most active municipal airport in the country, making it easy for business executives to stop in for a conference or grand opening. Centennial also extends east and west of Interstate 25, and a stop along the light-rail line provides regional accessibility. Location and convenience are among the selling points that grab the attention of commercial site selectors, as is proximity to a well-educated workforce. More than 50% of Centennial residents over the age of 25 possess a bachelor or graduate degree. Employers are recognizing this – between 2013 and 2014, more than 7,500 jobs were added in Denver South, a region of economic prosperity that encompasses 18 business parks, seven Fortune 500 companies, and more business relocations than anywhere in the region. The City of Centennial alone is projected to add 25,000 jobs by 2025. But everyone knows it takes the right game plan to thrive. That’s where the city’s approval team comes in. A surprisingly fast entitlement process is the norm, not the exception, and Centennial’s economic development division guides business leaders through the city’s offerings while answering the many questions that come with any project. A Life of Quality There are many reasons why Centennial was home to the third-hottest ZIP code in the nation last year, according to Realtor.com, and it goes beyond just economic factors. The city boasts 300 days of sunshine per year, stunning views of the Rocky Mountains and high-performing school districts. USA Today’s 2015 ranking of Centennial as the fourth-best place to live in the U.S. owes much to these positive attributes. As a result, people are coming in droves and multiple housing projects are in various stages of completion. Quality of life components and a healthy business climate are big drivers behind the decisions to locate in Centennial. Access to well paying jobs is key; household income in Centennial jumped 16.4 percent between 2010 and 2014. With a fertile environment in place, Phoenix-based The Wolff Company broke ground last fall on the Elevate at INOVA Apartments, a 285-unit apartment project on the southeast corner of Havana Street and Geddes Avenue. The project is slated for completion in fall 2017. Cityscapes at Southcreek is a planned 70-unit, single-family, detached residential community at the northeast corner of Jordan Road and Broncos Parkway. More residential development applications are currently under review. Into the Future It’s with economic vitality in mind that Centennial launched its fiber initiative. The city is getting ready to construct a $5.7 million fiber optic network to maintain its competitiveness with major cities and continue to attract and retain top employers. The new infrastructure will improve telecommunications, enabling businesses to send large amounts of data in a fraction of the time it takes now. The upgrade is expected to drive down costs for primary employers and fulfill an essential 21st century need, putting Centennial’s businesses in an optimal position as they excel into the future. The physical elements are critical, but it’s equally important to have brilliant minds at work. Centennial is one of 12 U.S. cities – and the only suburban community – to participate in Bloomberg Philanthropies’ Innovation Team program, developing innovative ways to improve the city’s transportation system. Other Facts about Centennial • The city has a median household income of over $90,000. • Centennial uses a modernized land development code to simplify the process. When all was said and done, Centennial issued 10 percent more commercial building permits in 2015 than it did the previous year. • Centennial is a hotbed for the aerospace, finance, and professional services industries.