Summer Vibes, Green Shoots Emerge in Denver Metro

Summer is here, and with the scorching sun comes summer-break, concerts, golf tournaments, food festivals and other outdoor events. Whether you are new to the city or a Colorado Native, we have plenty to celebrate this quarter.

Denver Nuggets - 2023 NBA Champs

On Monday, June 12th, sparks flew across the Denver sky when the Nuggets secured their first NBA championship win against Miami Heat. That Tuesday, crowds gathered along Broadway Street and 17th Street to see their champions carry the Larry O'Brien Trophy for the first time in the franchise's 47 years in the league.

On the heels of the Colorado Avalanche's Stanley Cup win in 2022, fans are wondering if the Colorado Rockies can step up to the home plate...

Nuggets parade 2023: Watch full replay here \| Fox31 Denver

16th Street Mall Improvements - Our Past, Present, & Future

Click here for more updates on the project

The 16th Street Mall Project, budgeted at about $150 million, began construction for its new look in late 2021. In addition to addressing deteriorating infrastructure, the project will have pedestrian safety and mobility at top of mind. A welcoming sidewalk experience with improved walkability and connectivity has been an integral part of downtown redevelopment projects across the U.S. In 2012, the Downtown Project in Las Vegas invested $350 million to revitalize their downtown, resulting in nearly $210 million in economic output and helping to create more than 1,500 jobs.

Along with wider sidewalks, the 16th Street Mall project will bring new amenity zones, a center-running free Mallride shuttle, site furnishings, play features, and improved greenery. Estimated to be complete by the end of 2024, this inspired project will revitalize the mall and ensure it's continued success for generations to come.

Mi Casa es Su Casa

Colorado residents let out a sigh of relief in September 2021, when "South Park" creators Trey Parker and Matt Stone purchased Casa Bonita for $3.1 million. Now, after being closed since March 2020, the 52,000 SF restaurant is once again serving up sopapillas and diving off cliffs.

Having opened in 1974 as part of a chain of Mexican entertainment restaurants, Casa Bonita needed considerable work and ultimately racked up over $40 million in renovations. Despite it's challenges, locals are thankful for the restaurant's revival and Casa Bonita will continue to stand tall as a classic, pink Colorado staple.

Redevelop, Revitalize, Regrow

Clayworks, Golden

CoorsTek has announced plans to transform their 112-year-old manufacturing plant into a mixed-use district. Spanning five blocks over 12 acres, the project will incorporate new and restored buildings to bring 1.25 million square feet of office, residential, retail, and hotel space to downtown Golden. Sitting in the heart it all will be the new, state-of-the-art global headquarters of CoorsTek.

Fox Park

Located on 41 acres in the Globeville neighborhood, Fox Park will be a transformative mixed-use development anchored by the World Trade Center. The site will have a cultural center, an International Exhibit Hall, a boutique hotel, a performing arts center, a conference center, restaurants, retail, a fitness center, and art galleries. With the intent to connect the community and bring new opportunities, affordable housing, and greater light-rail access to residents, the project is estimated to cost $600 million and take eight to ten years to complete.

Burnham Yards

The Colorado Department of Transportation bought 58 acres of rail yard in May 2021 for $50 million with plans to expand I-25. Located just south of downtown Denver, the site will no longer expand the highway and full plans have not yet been developed. Burnham Yards is home to many historic buildings and is well located to connect nearby neighborhoods and the South Platte River. It will likely undergo major infrastructure improvements as the city aims to preserve and reuse the historic site.

Denver Elections - New, Old, Diverse

In June, Colorado voters chose former state senator Mike Johnston to be the city's first new mayor in more than a decade. Born and raised in Vail, Mike worked extensively in higher education before starting his political career in 2007 as an educational advisor to Barack Obama's. He served in the Colorado Senate from 2009 - 2017.

Joining the mayor will be six new faces in Denver's City Council - Darrell Watson, Diana Romero Campbell, Flor Alvidrez, Sarah Parady, Serena Gonzales-Gutierrez, and Shontel Lewis.

The new mayor and council members were sworn in on July 17, 2023.

Our Client Success Stories

AEW Capital Management

This client's new Denver office needed to be centrally located with the potential to expand their office footprint. By providing a wide array of options and working strategically, we completed a 5,217 SF lease in the heart of LoDo at 1400 Wewatta.

Undisclosed Healthcare Company

With cost savings top of mind, we helped this client with both a sublease and relocation, ultimately downsizing from approximately 50,000 to 10,000 square feet in Englewood, CO. We were able to efficiently work with the client, going from tour to lease execution in 6 weeks.

Real Matters - Buffalo, NY

This portfolio client with locations across the U.S. and Canada renewed their lease in the Larkin Center of Commerce, Buffalo New York's largest mixed-use facility with 1.2 million square feet of space.

1. Leasing Activity

Metro Denver leasing activity showed improvement with 1.1 million sq. ft. of leases transacted, an increase of 22.4% quarter-over-quarter.

Class A properties reported the most leasing activity with 696,500 aq. ft. or 63.5% of total activity.

2. Employment

Metro Denver's unemployment rate rose 34 basis points in May to 2.8%, up from its cyclical low of 2.4% a month earlier in April.

On a year-over-year basis, unemployment is up only 14 basis points from 2.6%.

3. Development

Metro Denver's office construction pipeline decreased 41,500 sq. ft. following the delivery of Credit Union of Colorado's new 106,500 sq. ft. headquarters in the Northeast submarket and Mortenson breaking ground on their new 65,000 sq. ft. building in RiNo,, making it the fifth building under construction in that submarket.

4. Absorption

Negative net absorption of 140,800 sq. ft. brought the year-to-date total to negative 525,400 sq. ft. and marking the fifth consecutive quarter of negative absorption.

Class A net absorption helped to counterbalance the negative absorption accumulated at lower-class properties by recording positive 231,900 sq. ft. this quarter.

5. Investment

Office investment sales had a modest boost with eight properties trading hands for a total volume of $253.6 million. The average price for these transactions was $304.39 per sq. ft.

Investment volume fell significantly year-over-year, decreasing 743.3% from the $988 million seen in Q2 2022, but increasing 24.5% quarter over quarter.

Click below to view the CBRE Q2 2023 MarketView Office Reports:

Denver Metro

Denver Downtown

Denver Southeast

Denver Northwest