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June 7, 2018

More than 3.18 million square feet of office space has been built in the past five years or is currently under construction in Denver, according to the Downtown Denver Partnership. This marks a record high for the city, which celebrated the midpoint of its 20-year plan for growth last year.

The Downtown Area Plan is intended to create a “livable, healthy and economically powerful downtown,” and the city has seen tangible results. Significantly improved transit, increased retail offerings, and a downtown residential community that has more than doubled can all be credited to the plan in action, writes Tami Door, president and CEO of the Downtown Denver Partnership, in Colorado Real Estate Journal article.

The increase in office construction has not resulted in high or reduced lease rates, however, as one might expect in the face of significantly increased supply. Instead, Door writes, the downtown market is witnessing stable vacancy at 11.6% and rising lease rates at an average of $33.09 per square foot.

Among the sources of increased demand, Door notes the presence of more than 700 tech startups in downtown Denver, who collectively employ nearly 5,000 workers. The large volume of startups raised $500 million in venture capital during 2017 alone.

Read the full article at www.crej.com.

 

May 31, 2018

According to an NREI report, sales of industrial properties rose 3% between 2016 and 2017, while industrial real estate investments increased a significant 23.2%. BisNow explains that the recent increase in activity can be attributed to three major trends in the market: Distribution and Logistics, Fast and Fresh, and Heightened Attention to Broker-Client Relationships.

To read the article, click here.

Distribution and Logistics:
The birth of e-commerce significantly altered decision-making factors for companies looking to lease industrial space. Prior to the rise in e-commerce business, companies sought out well-located properties for the lowest possible rent. E-commerce shifted the consumer consumption patterns to revolve around quick delivery and convenience, specifically the demand for same-day and next-delivery. This shift has forced companies to refocus their delivery strategies, which may mean choosing location over price.

Fast and Fresh:
Consumer demand is at an all-time high for meal-kit delivery companies like Blue Apron and Hello Fresh. Companies like these heavily rely on fast delivery to satisfy the customer’s expectation they will receive fresh food, and proximity to customers and distribution channels is a key consideration for these company’s real estate decisions. Hello Fresh’s strategic decision to located their operations in New York puts them in easy delivery distance of their customer base, and Amazon has recently acquired cold storage warehouses near Dallas, Chicago, and New York City.

Heightened Attention to Broker-Client Relationships:
Lastly, BisNow notes that brokers must increasingly focus on the specific needs of their clients. Different companies desire varying locations, square footage, and proximity to transit, and it is essential that broker’s focus on attaining a strong relationship with his or her client base.

These three key factors are expected to drive industrial real estate trends as long as e-commerce businesses are on the rise. 

 

Read the full article at www.bisnow.com

February 13, 2018

San Francisco-based Graham Street Realty added to its Denver portfolio with a pair of Englewood office buildings. Affiliate company Paramount Property Company will take over management of the building.

Pyramid Pointe, a 120,279-square-foot building at 9777 Pyramid Court in Meridian International Business Center, and 384 Inverness, a 51,523-square-foot building in Inverness Business Park, sold for $19.4 million. Westcore Properties and American Realty Advisors sold the properties in a deal handled by Newmark Knight Frank Executive Managing Directors Riki Hashimoto and Dan Grooters.

“We are excited about these new acquisitions, which are well-located relative to the new locus of executive and workforce housing in the southeast corridor, and we look forward to the opportunity to lease near-term rollover in a strong market,” said David Messing, Graham Street Realty co-managing principal.

Read the full article at www.crej.com. Read more coverage of this transaction at Bisnow.com.

 

January 24, 2018

Rent checks at two Arapahoe County office complexes are headed to a different coast next month.

Graham Street Realty, an office real estate affiliate of San Francisco-based Hamilton Zanze, bought 350,000 square feet in Littleton and Aurora office space this month for $34 million. The deal included the Corporate 25 office complex and the Aurora Corporate Plaza.

Aurora Corporate Plaza is the larger of the two office complexes, with three buildings totaling 219,000 square feet. It was about 80 percent leased at the time of sale. Janus and ADP are the two largest tenants on the office park’s rent rolls. The property sits at the corner of Peoria Street and Iliff Avenue.

Corporate 25 totals about 135,000 square feet. Oppenheimer is the biggest tenant in the complex, which sits at 7200 S. Alton Way, just north of Interstate 25 and Dry Creek Road.

 

Read the full article at BusinessDen.com