Colorado Real Estate Journal - September 21, 2016
Words synonymous with change include adjustment, advancement, development, transformation, transition, variation and shift. These are all words that describe the vast turn-around experienced in downtown Denver since the city instituted the 1986 Denver Downtown Area Plan. Denver was very forward thinking. In 1986, downtown Denver’s oil and gas companies accounted for 47 percent of the office tenancy and most exited the marketplace overnight, creating a glut of office space and a virtual ghost town for a number of years. The price of a barrel of oil at the time was $9 and over 65,000 people moved out of Colorado that same year. Today, over 75,000 people live in downtown Denver alone. Millennials and empty nesters continue flocking to live in the core area. Accordingly, companies are following suit to be in downtown Denver, including companies in industries such as health care, technology and financial services. In spite of the recent pull back of oil and natural gas prices, the 750,000 square feet of sublease space pales in comparison to the growth we have seen from other industries. “In the past 24 months alone, 24 companies have relocated their headquarters or expanded into downtown Denver,” according to the Downtown Denver Partnership’s State of Downtown Denver 2016 Report. “Since June, we can add another four companies to that ever-growing, dynamic list realizing that downtown Denver is a critical location to attract and retain labor now and into the future.” Downtown Denver has become a world-class city through arduous planning and luck over the past two decades. In a 20-year span, downtown Denver has added almost 10 million sf of office space, over 65,000 residents and 22,000 hotel rooms. One of the hallmarks of this exponential growth is the multibillion-dollar, voter-approved transit expansion known as FasTracks. Companies and investors alike have taken note of the investment Denver has made in itself, creating ease with which people can and will navigate the entire metro area. The hub of this massive transportation system is downtown Denver. Currently 88 total miles of rail connect into downtown Denver. This year alone has brought transit from Denver International Airport, Westminster, Wheat Ridge and Aurora, all accessing the center of downtown Denver. Future service includes lines to Thornton and extension of the Southeast, Southwest and Central rail lines. Employees, residents and guests can conveniently traverse in and out of downtown Denver. The efficiency and mobility has permitted firms (for the first time in my 30-plus-year career) to move from Boulder to Denver. Additionally, this abundance of labor provides employees the ability to live, work and commute into Denver’s center city. In the past decades, firms resisted relocations into downtown Denver due to lack of world-class hotels, insufficient residential, high cost of parking and congestion. Parking continues to be expensive and congestion could be much worse given the fact we have the highest population and number of employees ever in downtown Denver. Yet almost 60 percent of commuters utilize transit, bicycles, ride share and walk in their weekly travel. Downtown Denver has become recognized as a very commutable and pedestrian friendly place to work, live and visit. Increased development and population growth also has brought its share of challenges to downtown. Those of us who work or live in downtown Denver recognize the issues facing the city with our proliferating homelessness and transient population. A number of blocks within the 16th Street Mall have become an eyesore. It is a challenge in major cities to care for the homeless and Denver is no exception. Yet an even greater challenge has been to control and enforce safety, littering and sanitation. Many homeless appear to be able-bodied and find downtown Denver to be a very comfortable and enjoyable area with a mild climate that can sustain their lifestyle. Fortunately, the city has recognized many of these issues and is taking measures to mitigate the crime and lack of cleanliness that has come along with the advancements in downtown Denver. Downtown Denver’s future looks bright. On the heels of over $5 billion of development projects downtown over the last five years that include over 5,500 residential units, 3 million sf of office space and 26 hotels; we have an additional $2.5 billion in total investments under construction and planned that include 1,200 hotel rooms, 4,600 additional residential units and another 2.6 million sf of office space. Downtown Denver has become one of the hottest center cities in the United States. In the last two years, Denver has been ranked by numerous publications as “best-in-class” for business, careers, livability, economic growth, entrepreneurs, technology and housing. Downtown Denver has become a “model” downtown with many cites wishing to emulate. An idea and plan that started in 1986 by some very forward-thinking individuals in a time of crisis changed downtown Denver forever.