Colorado Real Estate Journal - June 15, 2016
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 $2.5 billion is being invested in over 32 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. In 2016, U.S. News and World Report ranked Denver as the number one best place to live in the entire country and Forbes ranked it the number one best place for business and careers. DENVER UNION STATION There development of Denver Union Station is a unique and transformative development project that continues to change Downtown Denver. As the multimodal transportation hub of the Rocky Mountain region, the publicly funded Denver Union Station Infrastructure Redevelopment project is spurring significant private development around the transit center. This multi-billion dollar project has been in the works for several years and over the past year a number of significant milestones were reached. Denver Union Station is the hub for the entire multi-billion FasTracks program that was approved by voters in 2004. The RTD FasTracks Program is a comprehensive transit expansion plan to build 122 miles of new commuter rail and light rail, 18 miles of bus rapid transit, 21,000 new parking spaces at light rail and bus stations, and enhance bus service for easy, convenient bus/rail connections across the metro area. This Program is one of the most ambitious transit projects in the United States. Denver Union Station serves as the centralized transportation hub, integrating light rail, commuter rail, and intercity rail (Amtrak), as well as regional, express, and local bus service, the 16th Street Mall shuttle, Free MetroRide, and intercity buses, taxis, shuttles, vans, limousines, bicycles and pedestrians. The hub includes a 22 bay underground bus terminal that serves as the spine of the entire site and features an interior pedestrian concourse. The new terminal opened and began operation in May of 2014 and replaced the existing Market St. Station which will soon become a new re-development site. The Chestnut and Wewatta pavilions and plaza areas provide a street level connection between the light rail station and Mall shuttle platforms at one end of the terminal and the commuter rail platforms at the other. The existing Denver Union Station building underwent an extensive historic renovation that was completed in summer of 2014. The station remains a downtown landmark and serves as an anchor of the larger master plan for the overall development. The station serves as the gateway to the new transportation hub, which was developed on land behind it. The station’s upper floors of the north and south wings were converted into the 112 room The Crawford Hotel that welcomed its first guests in July of 2014. The station’s Great Hall serves as the hotel’s lobby and the remaining 22,000 SF of retail space on the ground floor is home to a number of distinct new restaurants and stores including Stoic & Genuine by Chef Jennifer Jasinski, Mercantile Dining & Provision by Chef Alex Seidel, Snooze, The Kitchen Next Door, Five Green Boxes, Acme Delicatessen, Bloom, The Cooper Lounge, Milkbox Ice Creamery, Terminal B, Pigtrain Coffee Co., Terminal Bar, and a new outpost for The Tattered Cover. The first rail line of FasTracks to be completed, the West Line, opened in April of 2013 connecting Downtown Denver with the Jefferson County Government Center in Golden. The 12.1 mile light rail corridor features 11 new stations as well as new Park-n-Rides and Call-n-Rides. There are four new transit lines that will open in 2016 and further connect Denver Union Station to surrounding cities and communities. The Flatiron Flyer began operations in January and is a bus rapid transit service that connects Downtown to Boulder and all of the cities in between. The University of Colorado A Line opened in April and provides easy, affordable and reliable connections to Denver International Airport and the communities along the way. The B Line will open in July providing direct service to Westminster and the G Line service that connects to Wheat Ridge will open later this fall.