DENVER | Main Development Thread #6

[Denver]

Originally Posted by SandSailor

With Davita taking 6 stories in the new building, is there any chance they up the height? Or is it set in stone? Did they know about Davita when they initially proposed this building?

Doubtful seeing as Davita's expansion was contingent on OEDIT tax credit which was just announced. Also, Davita will be taking up 11. They currently occupy 6 floors in the gates building which I am guessing they will vacate when they move.

[mhays]

Originally Posted by SandSailor

With Davita taking 6 stories in the new building, is there any chance they up the height? Or is it set in stone? Did they know about Davita when they initially proposed this building?

When a tenant announces a lease, they rarely want to move the project back six months or a year by re-starting design and entitements.

PS, still sad that Davita was taken from Tacoma. Seattle can steal companies from our little brother, but when Denver does it you're taking from our family.

[Scottk]

Originally Posted by mhays

PS, still sad that Davita was taken from Tacoma. Seattle can steal companies from our little brother, but when Denver does it you're taking from our family.

nice

[CherryCreek]

The Nation does the typical crap media job of claiming that the legalization of marijuana is driving up Denver housing prices.

http://www.newrepublic.com/article/123084/green-rush-and-denvers-housing-crisis

Like every article in the last year or so that has made this claim it presents zero evidence of its ludicrous headline suggesting that there is a housing "crisis" linked to the marijuana boom.

Let's follow this logic:

1. Colorado legalized marijuana in 2012.
2. WIthin three years, the economy was booming and real estate prices were soaring.

Therefore

Legalized marijuana caused booming economy and high real estate prices.

Any questions?

I think my theory is just as valid as the Nation's:

1. The Denver Broncos signed Peyton Manning in 2012.
2. Within three years, the economy was booming and real estate prices were soaring.

Therefore,

The Broncos signing Peyton Manning caused booming economy and high real estate prices.

Any questions?

[comoneymaker]

I know of at least 20 people that moved here because pot was legalized. It isn't the main cause but it is a large factor. Cali is moving here cause tech companies are moving here from because houses have gotten so expensive and we are equal "quality of life". But every other state license plate you see is likely for pot.

[DUPio]

They will be bringing in an additional crane and installing the dome for DU's engineering building on the evening of the 20th

[mhays]

Seattle isn't seeing a particularly inflow of people due to pot. Population growth has sped up a little but the economy would justify that. Or maybe our prices are too high for most potheads. And I don't know many 20-somethings outside my own work, where we're tested. But I'm not buying that as a major trend for either of us.

[Denver]

A second crane is being put up at the Confluence Apartments. Additionally, looks like construction has begun on the apartments at 28th and Vallejo.

[Sam Hill]

Originally Posted by mhays

Seattle isn't seeing a particularly inflow of people due to pot.

Neither is Denver. The unemployment rate for metro Denver was 3.6% last time I checked. People are coming here for the jobs, not the pot. Although I suppose it could be the marijuana industry that's largely responsible for adding thousands of jobs per month to the area.

[The Dirt]

Pffft! Statistics? Who needs that when you have anecdotal evidence!

[comoneymaker]

You are also forgetting Seattle sucks. 4 people at my work moved here from out east for pot.

[mhays]

Right!

[Denver Dweller]

http://www.denverpost.com/business/ci_28970680/dia-land-sale-could-help-revive-stalled-aurora

[seventwenty]

DP office space recap over the past quarter

Originally Posted by Denver Post

Nearly 1 million square feet of new office space came online during a strong third quarter for the Denver commercial real estate market, according to data released Thursday by CBRE.

Between July and September, seven office buildings were completed in the metro area, including the 242,807-square-foot Triangle Building and 299,545-square-foot 1601 Wewatta in Lower Downtown, for a total of 925,587 square feet of new space.

Another 2.5 million square feet is still under construction, the commercial real estate firm said.

. . .

Office leasing remained strong in the third quarter, with average lease rates rising to $24.67 full service, up 52 cents from second quarter and up 8.6 percent year-over-year.

Vacancy rose slightly to 12.9 percent from 12.5 percent, although that could level off as tenants begin moving into the newly finished office buildings later this year or early next, Ostermick said.

A total of 350,608 square feet was absorbed during the third quarter. At the same time, downtown Denver had more than 1 million square feet in available sublease space, due in large part to contraction in the energy sector.

. . .

Retail, which has lagged in terms of recovery, saw vacancy stay steady at 5.9 percent, the lowest rate recorded post-Great Recession.

The areas experiencing the tightest conditions, Colorado Boulevard/Midtown and the southeast corridor, were at an almost-unheard 2.2 percent vacancy in the third quarter, said Jon Weisiger, senior vice president at CBRE Retail Brokerage Services in Denver.

"When you see vacancy rates that start dipping down into the 6 percent or less range, that's pretty unprecedented in our market," Weisiger said.

Average rent rates fell slightly, to $17.05 triple net from $17.37. Even with the dip, rates were still up 9.5 percent year-over-year.

"I do not see the trend in rising lease rates turning anytime soon," Ostermick said. "There frankly isn't enough construction."

[seventwenty]

The Post's article on the failed DIA-Aurora enterprise zone bid

The Colorado Economic Development Commission denied Denver's request to include Denver International Airport within its enterprise zone and removed the Gaylord Rockies Hotel from Adams County's proposed zone.

"The enterprise zone is designated for areas of economic distress," said Commissioner J.J. Ament.

Back in August, commissioners told representatives of both counties to make a stronger case for including the DIA and the Anschutz Medical Campus or redraw their proposed enterprise zone boundaries.

. . .

Thursday's decision could shift the dynamic between Adams and Denver counties by making development more attractive just outside of DIA's boundaries.

Voters in both counties will vote on a new agreement next month to share tax revenues from on-airport development.

Although Denver lost the most, Adams County didn't get a free pass.

Adams County stripped out huge parcels to the north and east of the airport in its revised map. After questioning, the county was allowed to retain the Anschutz Medical Campus but lost Gaylord, which is under construction northeast of the 6400 block of Himalaya Road just south of DIA.

Given the project is slated to receive $81.4 million in state Regional Tourism Act incentives, commissioners didn't want to layer on another tax benefit worth millions more.

"This is like Christmas for Gaylord," said Chairman Dick Monfort.

And Image:




DBJ report on the same topic

Denver and Adams County developers will not be able to offer valuable enterprise-zone tax breaks to prospective companies they hope to lure here part of their plans to develop an economic center around Denver International Airport.

Colorado Economic Development Commission members on Thursday rejected the proposed inclusion of airport-area land within both counties as part of the enterprise-zone program, a statewide economic-development tool aimed at increasing jobs in economically distressed areas.

. . .

Among the parcels that they refused to include in the two counties’ enterprise-zone areas is the proposed Gaylord Rockies hotel and conference center in Aurora.
The approval or extension of enterprise-zone boundaries typically isn't controversial. But EDC members balked in August when economic development promoters said they wanted to add land owned by DIA and and areas located around the airport to the enterprise program.

The idea was to jump-start Denver Mayor Michael Hancock’s plans to attract more new businesses dependent on air service to the area in what the mayor has called an "aerotropolis."

[wong21fr]

Originally Posted by seventwenty

DP office space recap over the past quarter

Using the the de facto standard for office development on this forum, 3.42 Republic Plazas have been completed or are U/C since 2010 for the downtown area. That's compared to 1.2 to 1.5 Republic Plazas built in the dreaded SE corridor during the same time period.

[TakeFive]

Originally Posted by rds70

Davita to take 11 of 19 floors in the 16 Chestnut building:

Construction to start in July 2016.

That's very cool.

Kent Thiry is quite the operator as Davita keeps growing and growing. They've gone global with their most recent expansion into Brazil. Whether Kent can keep up as a guy with the "golden touch" will be interesting to see. I wouldn't bet against him.

There was also a recent article by Molly Armbrister in the DBJ about Antero Resources taking 37,000 square feet in the new 51,000 SF adjacent A Block office building. Antero, which is a relatively new (public) company is primarily a NatGAs E&P company which has been their edge in this current market.

Originally Posted by patco

Lots of exciting news today! There is some great info on the for-sale DUS project here - https://www.denvergov.org/content/dam/de...tesy_SD_Package_Final_20150929_Part1.pdf

Great link... Thanks.

Originally Posted by wong21fr

BusinessDen is reporting that B Block will indeed be a for-sale project:

Amstar did buy the parcel from E/W Continuum a few month ago and is a partner in the project. Which is interesting because it seems that Amstar is exclusively focused on multifamily rentals and not for-sale projects. Can anyone find something that says otherwise?

Nope. What I did find is that Amstar often partners with others in their projects and that they've been pretty busy especially in Texas.

It could be that final decisions haven't been made. Also with Amstar being Denver based it may just be "friends" partnering whichever way it goes. East West is still involved in this project; the land sale was likely about paying Continuum Partners for their equity position.

[TakeFive]

Originally Posted by Denver

Doubtful seeing as Davita's expansion was contingent on OEDIT tax credit which was just announced. Also, Davita will be taking up 11. They currently occupy 6 floors in the gates building which I am guessing they will vacate when they move.

With respect to the tax credit "you gotta dance with the one that brung ya" as keeping and pleasing existing Denver companies is much more important than recruiting new companies to the area unless it's a really nice company like Davita was when they moved to Denver.

Originally Posted by CherryCreek

I think my theory is just as valid as the Nation's:

1. The Denver Broncos signed Peyton Manning in 2012.
2. Within three years, the economy was booming and real estate prices were soaring.

Therefore,

The Broncos signing Peyton Manning caused booming economy and high real estate prices.

Any questions?

Nope. You got my vote.

Originally Posted by The Dirt

Pffft! Statistics? Who needs that when you have anecdotal evidence!

Exactly.
Disraeli: "There are three kinds of lies: lies, damned lies, and statistics."
Then there's "anecdotal evidence" which surely takes the cake.

seventwenty... Nice posts, great info.

[Denver Dweller]

http://www.bizjournals.com/denver/print-...BElKTwGoSbqOBYu5F%2FO7W7Amf&t=1445028702

[Stonemans_rowJ]

Originally Posted by Denver Dweller

http://www.bizjournals.com/denver/print-...BElKTwGoSbqOBYu5F%2FO7W7Amf&t=1445028702

$18 to park for 2 hours downtown in Denver? Um, no. Maybe if you valet your car at a hotel.