DENVER | Main Development Thread #7

[InfillJunkie]

I've seen some of Amacon's stuff in Burnaby. Really nice product. Fingers crossed!

[TakeFive]

Originally Posted by BG918

Greystar is currently building 3 projects in Denver: Parc on Speer (Speer & Bannock), The Pullman (Ascent Union Station) and one of the new apartment towers at 9th & Colorado. If 18M actually breaks ground then I’ll say that T2 could actually happen.

Thanks for the update/correction. I should have at least remembered 'Ascent' - now The Pulman. In any case it's great to have Greystar now jumping in with both feet to the development scene.

Originally Posted by mhays

Office growth is based on economic conditions, and specific demand from big companies. One city's office market says very little about another city's.

Seattle and Denver are very different from each other. Seattle's current catalyst is vibrant clear with Amazon's accumulation of tons of space along with the obvious ripple growth affect.

With one exception (Davita), all of Denver's Fortune 500 HQ's are (still) in the suburbs and Denver keeps losing HQ's to mergers as fast as they gain them. What downtown Denver benefits from is its own booming economy that's more granular and diverse. When Hines broke ground (June 2015) on their over 650,000 SF, speculative office building (1144 15th Street) nobody (at least me) knew how much demand or how quickly the project would lease up. It's been Not a problem. Bottom Line is that Denver's growth is much more opaque, less predictable than Seatte's. Fortunately it's been like the energizer bunny.

Speaking of Amazon

https://www.bizjournals.com/denver/n...hort-list.html

According to The New York Times, there is “widespread speculation” Amazon could cut down its 20-city short list for its second headquarters as soon as this month. The company would then ask for “best-and-final offers” from the remaining cities, according to the report.

Amazon CEO Jeff Bezos ... is said to be “incentive-obsessed” in his company’s HQ2 hunt... “His whole team is charged with getting the largest pound of flesh possible out of every jurisdiction they are in,” the person said. “It’s about money and about the spreadsheet, but it’s also about being wanted and this gesture he expects from the governments where he’s blessing the community with high-wage jobs.”

[twister244]

Originally Posted by TakeFive

Thanks for the update/correction. I should have at least remembered 'Ascent' - now The Pulman. In any case it's great to have Greystar now jumping in with both feet to the development scene.




Seattle and Denver are very different from each other. Seattle's current catalyst is vibrant clear with Amazon's accumulation of tons of space along with the obvious ripple growth affect.

With one exception (Davita), all of Denver's Fortune 500 HQ's are (still) in the suburbs and Denver keeps losing HQ's to mergers as fast as they gain them. What downtown Denver benefits from is its own booming economy that's more granular and diverse. When Hines broke ground (June 2015) on their over 650,000 SF, speculative office building (1144 15th Street) nobody (at least me) knew how much demand or how quickly the project would lease up. It's been Not a problem. Bottom Line is that Denver's growth is much more opaque, less predictable than Seatte's. Fortunately it's been like the energizer bunny.

Speaking of Amazon

https://www.bizjournals.com/denver/n...hort-list.html

Another list?.........

I really hope that's not true, and they just make their final decision. This is starting to get old and drawn out.....

[TakeFive]

First they lease it; then they decide to sub-lease it; and after 30 years who's going to remember all that?

If that wasn't enough, it turns out that the biggest impediment to starting construction is the “Evolution of the Ball” sculpture.
It's isn't something that you can just throw over you shoulder and carry off.



Source

Meanwhile they are set to go before the City Council August 27th.

[CherryCreek]

Originally Posted by TakeFive

First they lease it; then they decide to sub-lease it; and after 30 years who's going to remember all that?

If that wasn't enough, it turns out that the biggest impediment to starting construction is the “Evolution of the Ball” sculpture.
It's isn't something that you can just throw over you shoulder and carry off.



Source

Meanwhile they are set to go before the City Council August 27th.

I would have thought they could incorporate somewhere within the new development - perhaps in the courtyard.

[DenverInfill]

Originally Posted by CherryCreek

I would have thought they could incorporate somewhere within the new development - perhaps in the courtyard.

I agree. Seems like it wouldn't be too hard to disassemble it and reassemble it after the project is finished in the courtyard.

[wong21fr]

Originally Posted by DenverInfill

I agree. Seems like it wouldn't be too hard to disassemble it and reassemble it after the project is finished in the courtyard.

Not too hard, but that's what was also said about a resurrected Mizpah Arch at Union Station or the bicycle commuter station that never came to realization.

Speaking of that, just what in the hell happened to the Bike Hub at Union Station? Ken? Chris?

Source

[mr1138]

Originally Posted by wong21fr

Not too hard, but that's what was also said about a resurrected Mizpah Arch at Union Station or the bicycle commuter station that never came to realization.

Speaking of that, just what in the hell happened to the Bike Hub at Union Station? Ken? Chris?

Source

I have just been thinking about this too. This was one of the most exciting things being planned near Union Station and since then it's been nothing but crickets. I feel sad every time I pass by that big empty space and see no Bike Hub. Google searches don't turn up anything new since 2015 either.

[rds70]

Originally Posted by SirLucasTheGreat

According to the site development plan, Block 162 is going to be 476 feet tall. The Spire is 478 and the Hyatt Regency is 489 for reference.

I just saw the approved development plan from the City, and Block 162 will top out at 452 feet, which would make it the 11th tallest building in downtown.

[wong21fr]

Well, this would be nice it if happens- especially if the mystery company would setup shop downtown:

Fortune 250 company eyes moving global HQ to Colorado, with 800 jobs

Colorado is one of two states in the running to house the global headquarters of an unidentified Fortune 250 consumer-products and e-commerce company that is looking to create 800 new jobs and invest more than $200 million to bring together in one location its array of decentralized brands.

Members of the Colorado Economic Development Commission voted unanimously Wednesday to offer the company, identified publicly only as “Project Cardinal,” as much as $27 million in job-growth incentive tax credits were it to move to the Denver area and create the jobs — the second-largest tax break ever offered by the governor-appointed body, behind a $34 million incentive afforded last year to Charter Communications. The average annual wages for positions created by this new company would be $185,781 — the highest salary ever offered by a company getting incentives from the Colorado Office of Economic Development and International Trade.

OEDIT leaders were secretive on specifics of the company at the monthly Colorado EDC meeting Wednesday, citing requests from the firm itself. But it’s known that the company currently employs 98 people in non-retail operations in Colorado and that it would plan to begin relocation next year, likely taking another two years to move into permanent space.

“This would be multiple headquartered brands consolidating with a global company,” said Michelle Hadwiger, OEDIT deputy director. “We think this would be a great opportunity for Colorado.”

[CherryCreek]

Originally Posted by wong21fr

Well, this would be nice it if happens- especially if the mystery company would setup shop downtown:

Fortune 250 company eyes moving global HQ to Colorado, with 800 jobs

800 HQ jobs is a big deal! Hope it happens.

[TakeFive]

Originally Posted by wong21fr

Well, this would be nice it if happens- especially if the mystery company would setup shop downtown:

Fortune 250 company eyes moving global HQ to Colorado, with 800 jobs

I'll make a quick stab in suggesting State Farm. They've recently created 3 large regional HQ's with like 8,000 employees each. However their corporate HQ remains in Bloomington IL.

EDIT: Interesting change going on with State Farm; not sure if good or bad relative to a Denver move but a 'Global' office of 800 in Denver is strategic at least to their Tempe and Dallas/Richardson TX HQ's; less so for Atlanta.

[Ich]

Everyone’s favorite developer is back at it again in West Highlands (TCR)

https://businessden.com/2018/08/08/s...th-apartments/

[Robert.hampton]

Originally Posted by Ich

Everyone’s favorite developer is back at it again in West Highlands (TCR)

https://businessden.com/2018/08/08/s...th-apartments/

I saw the picture of the existing building and thought to myself ‘that looks pretty good for TCR!”.


On the bright side they are out of the 18th and Market project.....thank god.

[CherryCreek]

Originally Posted by TakeFive

I'll make a quick stab in suggesting State Farm. They've recently created 3 large regional HQ's with like 8,000 employees each. However their corporate HQ remains in Bloomington IL.

EDIT: Interesting change going on with State Farm; not sure if good or bad relative to a Denver move but a 'Global' office of 800 in Denver is strategic at least to their Tempe and Dallas/Richardson TX HQ's; less so for Atlanta.

Not State Farm. This from the Denver Post:


The Colorado Economic Development Commission approved $27 million in job growth incentive tax credits, its second largest incentive award ever, on Wednesday morning in a bid to attract the global headquarters of a Fortune 250 company.

The unnamed company, which made its request under the code name of Project Cardinal, is a consumer products and e-commerce company with sales around the world.


https://www.denverpost.com/2018/08/0...pany-colorado/

[CherryCreek]

Speaking of corporate headquarters, I don't think Denver was really in the mix for Amazon HQ2. Lots of media reports indicate that Amazon has a heavy focus on massive corporate incentives, and that's just not how we roll around here.

This from Bisnow:

Amazon Could Reportedly Release A Shorter List Of HQ2 Finalists This Month

August 07, 2018
Matthew Rothstein, Bisnow East Coast

Another major twist may be coming to the Amazon HQ2 saga before a winner is selected. Wikimedia/Seattle City Council Amazon CEO Jeff Bezos Rumors are swirling that Amazon could release a second shortlist of finalists in the running for its $5B second headquarters as early as this month, the New York Times reports. Times sources speculate that the move could be an attempt to get cities to further sweeten their incentive packages to land the headquarters and its estimated 50,000 employees. The bids have been the subject of controversy since Amazon announced its public search for HQ2. Of the 20 finalists selected in January from the 238 initial bids, only Newark, New Jersey, and Montgomery County in Maryland have released price tags of their incentive packages, and the numbers are staggering: $7B in incentives from Newark, and $8.5B in incentives and infrastructure payments from Montgomery County. Washington, D.C., also released some details of its proposal.

https://www.bisnow.com/national/news...inalists-91554

We would never (and should never) compete with those numbers. Not necessary.

[twister244]

I'm not making ANY assumptions about HQ2 until we get either a shorter list or a final decision. Everyone loves to think they know exactly what Amazon is looking for, and what they weigh more. However, as of right now, it's all under seal and behind closed doors. It's worth noting Amazon was here in late January..... before they visited any other cities (including DC). Plus, the city/state folks have been very very quiet throughout this whole process. Now, maybe that means the city/state think they don't have a solid shot, or it could mean Amazon really is looking at Denver seriously.

We shall see....

[Denveropolis]

Originally Posted by twister244

I'm not making ANY assumptions about HQ2 until we get either a shorter list or a final decision. Everyone loves to think they know exactly what Amazon is looking for, and what they weigh more. However, as of right now, it's all under seal and behind closed doors. It's worth noting Amazon was here in late January..... before they visited any other cities (including DC). Plus, the city/state folks have been very very quiet throughout this whole process. Now, maybe that means the city/state think they don't have a solid shot, or it could mean Amazon really is looking at Denver seriously.

We shall see....

Logically, Denver probably does not win...however, there are other hints I see that offer a glimmer of hope. I think Amazon has narrowed down multiple site offerings to one preferred location per city. Based upon the Broomfield Conoco/Phillips site being placed on the market recently and the rapid approval/planning process for River Mile, I believe that the Pepsi Center parking lots are Denver's preferred site. Also, Denver dropping out of the DNC 2020 convention as a finalist makes me think the Pepsi Center parking lots might have "other activity" in 2020.

[CherryCreek]

Originally Posted by Denveropolis

Logically, Denver probably does not win...however, there are other hints I see that offer a glimmer of hope. I think Amazon has narrowed down multiple site offerings to one preferred location per city. Based upon the Broomfield Conoco/Phillips site being placed on the market recently and the rapid approval/planning process for River Mile, I believe that the Pepsi Center parking lots are Denver's preferred site. Also, Denver dropping out of the DNC 2020 convention as a finalist makes me think the Pepsi Center parking lots might have "other activity" in 2020.

I too raised an eyebrow at the the seemingly urgent and rapid progress on River Mile which seemed contrary to the statements about what a "long term" play the whole development was and wondered if something else was going on. Of course, the plan indeed may be for a 10 to 20 year roll out with the proviso that, "if some opportunity came along," plans could be accelerated.

[Robert.hampton]

Originally Posted by CherryCreek

Not State Farm. This from the Denver Post:


The Colorado Economic Development Commission approved $27 million in job growth incentive tax credits, its second largest incentive award ever, on Wednesday morning in a bid to attract the global headquarters of a Fortune 250 company.

The unnamed company, which made its request under the code name of Project Cardinal, is a consumer products and e-commerce company with sales around the world.


https://www.denverpost.com/2018/08/0...pany-colorado/

Not a ton of consumer products and e-commerce companies in Fortune 250. L Brands probably fits the bill most closely, but I think all their brands already consolidated at the current HQ which would conflict with the Denver Biz Journal article stating it was bringing decentralized brands back together under one roof.

Another option could be Johnson and Johnson, they are the most 'decentralized' of the consumer goods companies -- but 800 seems a bit small for an HQ for them. But it actually could make sense if it is just a consolidation of the J&J Consumer Products division, because their brands' HQ's are all over the place. That would be my bet -- they are really 'the' consumer goods company that talks about decentralized brands.

Others could be colgate palmolive or kimberly clark.