CREJ - page 42

Page 2AA —
COLORADO REAL ESTATE JOURNAL
— August 19-September 1, 2015
Office
by Jill Jamieson-Nichols
United Properties is zero-
ing in on efficiency with a
212,000-square-foot specula-
tive office building set to break
ground in the southeast subur-
ban submarket next month.
The five-story Class A build-
ing will offer 44,314-square-
foot floor plates and 5:1,000
parking with lease rates from
$19 to $21 per sf triple net, a
notable discount to rates for
other new Class A construction
in the submarket.
The office building will kick
off construction at Inova Dry
Creek, a six-building business
park at 7250 S. Havana St. in
Centennial. The 650,000-sf
park, catering to single- and
multitenant occupancy, will
feature at least three additional
multistory office buildings and
an industrial/flex building.
Short for “innovative,” the
park will introduce enhanced,
tilt-up office architecture to
Denver, offering reasonable
cost with low maintenance,
durability, speed of construc-
tion and minimal capital
investment.
“We have been planning this
project since the initial land
closing in October 2014 and feel
this is time to introduce Inova
Dry Creek
to the mar-
ket,” Kevin
Kelley, vice
p r e s i d e n t
and regional
manager of
United Prop-
erties, said in
an announce-
ment. “Our
project team’s successes at
Enterprise Business Center
in Stapleton demonstrate our
ability to uncover market-
changing opportunities,” he
said, referring to the develop-
er’s Class A industrial park on
Denver’s Interstate 70 corridor.
United Properties is kicking off development of Inova Dry Creek with a speculative office building that will
offer lease rates starting under $20 per sf triple net.
Kevin Kelley
by Jill Jamieson-Nichols
Northstar Commercial Partners
has stepped up once again to buy
a buildingwith an unclear future.
With CoBank set to move to
its new headquarters building
in March, Northstar bought its
existing
204,945-square-foot
building at 5500 S. Quebec St.
in Greenwood Village. It paid
$16.15 million, or $78.80 per sf,
and has set about finding a new
user or users for CoBank’s nearly
180,000 sf.
“Our successful closing of 5500
S. Quebec brings us all a good
deal of excitement here at North-
star,” said company founder and
CEO Brian Watson. “In the near
future, we look forward to part-
neringwith local community and
business leaders to bring over
800 jobs to this location, which
will create opportunity for the
employees, local businesses and
the community at large. In sum,
we are in the business of creating
opportunity for others through
quality work environments,”
Watson said in an announcement.
Northstar’s forte is buying
vacant and distressed properties
and filling them up. It says it
already is working with several
prospective tenants and user-
by Jill Jamieson-Nichols
A shared workspace provider
signed a lease for 72,000 square
feet of office space in the Tri-
angle Building in the Denver
Union Station neighborhood.
WeWork, a workspace com-
munity for entrepreneurs,
freelancers, startups and small
businesses, will have a ground-
floor, private entrance into the
building with glass visibility to
the main building lobby on the
first and second floors.
The lease fulfilled develop-
er East West Partners’ goal of
bringing a co-working tenant
to the Union Station neighbor-
hood.
“Co-working and shared
workspaces are a huge trend
internationally, nationally and
right here in Denver and is a
concept we really wanted to
bring to the Union Station
neighborhood,” said East West
managing partner Chris Framp-
ton. “We couldn’t be more
thrilled that WeWork has cho-
sen the Triangle Building for its
entrée in the Denver market.”
WeWork will move into the
building, scheduled for comple-
tion next month, in early 2016.
Cushman &Wakefield of Col-
orado Inc. handled both sides of
the transaction.
With an earlier, 70,000-sf lease
by Liberty Global, the 210,000-
sf Triangle Building, located at
1550 Wewatta St., is two-thirds
leased. East West Partners is in
discussions with several poten-
tial tenants for the remaining
space.
East West is developing the
building with a controlled
affiliate of joint-venture part-
ner Starwood Capital Group.
They are targeting LEED Gold
certification.
s
Northstar Commercial Partners is looking for users or a buyer to fill
CoBank’s existing space at 5500 S. Quebec St. in Greenwood Village.
There’s been a shift in tenant
activity in downtown Denver,
as demonstrated by the accom-
panying charts from CBRE.
According to CBRE:
• With a year-over-year
increase of 29 percent in total
square footage basis, business
services leads all industries,
with 18 percent of active ten-
ants in the market.
• Accounting for 17 percent
of current active square feet,
the energy industry has seen
a decrease of over 500,000 sf
in the market in the past year.
This slowdown translated to
an increase in sublease space.
Energy now accounts for 41
percent of the available sub-
lease space downtown.
• Technology tenants seek-
ing space has soared this year,
increasing demand for space
on a per-sf basis by 44 percent
from a year ago and account-
ing for 9 percent of the active
tenant mix in the submarket.
• The total amount of sf
sought by active tenants rested
at 2.8million sf in July, a 16 per-
cent decrease from a year ago.
• As employment contin-
ues to expand, downtown is
expected to see organic growth
from users already in the mar-
ket and continued interest
from large multimarket users,
bolstering Denver’s diversi-
fied tenant mix and healthy
demand for downtown office
space.
s
Who’s who among downtown active tenants
2014 vs. 2015 downtown active tenant mix by sf
1...,32,33,34,35,36,37,38,39,40,41 43,44,45,46,47,48,49,50,51,52,...100
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