It is no secret that downtown Denver is experiencing a renaissance, spurred by the ongoing development and revitalization of the Central Business District (CBD), Lower Downtown (LoDo) and the Central Platte Valley. LoDo has been at the market forefront throughout 2014, with Denver’s iconic Union Station redevelopment taking the lion’s share of the attention. Asking rates are on the upswing - overall median full service asking rates increased from $27.50/SF in the 2nd Quarter of 2014 to today’s $30.00/SF - a new high.
Denver’s historic architecture and modern vitality have inspired several local real estate owners to redevelop and repurpose valuable assets Downtown. The 815 16th Street redevelopment, owned by a Colorado partnership of four Denver families, is one example of this movement. When the ownership’s long-time tenant, Walgreens, opted to extend and expand its space on the 16th Street Mall, taking over the neighboring space, the owners took the opportunity to repurpose the unused second floor. They have created a new 18,000-square-foot office suite, activating second-floor space, and perhaps most advantageous to the newly introduced office suite is that it’s just a few footsteps from the convenience and expediency of the 16th and Stout Fastracks stop.
“We value Downtown real estate owners who continue to make investments that align with the Downtown Denver Partnership’s mission of creating an economically vital and vibrant center city,” said Tami Door, president and CEO of Downtown Denver Partnership. “Having modern tenant space is a significant factor in attracting innovative companies Downtown. The 16th Street Mall is the spine of Downtown and it is essential to continually invest in spaces on the Mall to meet the standards of today’s workforce.”
A nexus for downtown Denver business, the 16th Street Mall is filled with outdoor cafés, new and renovated historic office buildings, sparkling glass-walled skyscrapers, shops, restaurants, and retail stores. Now in its fourth decade, this premiere pedestrian environment in the Rocky Mountain Region is also becoming the linchpin of RTD’s transportation system, connecting light rail stations, express bus terminals and local bus routes between Union Station and Civic Center. According to the Downtown Denver Partnership, an average of 2.3 million pedestrians visit the Mall every year, with 30,000 pedestrians walking the Mall every summer day and nearly 50,000 people are using the Free MallRide on an average weekday.
This exposure creates high demand, particularly within office space. Current vacancy in the Mall office inventory is 5.3%, well under the posted 4th quarter CBD vacancy rate of 12.6%. Despite its popularity, average asking lease rates can be as much as 50% lower than lease rates in LoDo and the Platte Valley.
At 18,000 square feet, the second-floor office space at 815 16th Street offers an unprecedented opportunity for up and coming tech or creative firms. Additional unique amenities, including 20’ ceiling heights and historical detailing, combined with the space’s large floor print; provide users with the potential for open, high-cube space with a hip and cool vibe. Significant capital improvements are underway at the building, including a private street entrance and elevator, a customizable reception area, and the possibility of an exclusive roof-deck. 815 16th Street is a textbook example of premier office space at value rates, for tenants in the know.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
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