Colorado-Real-Estate-Journal_375567

Page 10 - December 6-19, 2023 www.crej.com Office by Avalon Jacka DENVER – Boa Technology renewed its lease for its global headquarters in the Flight build- ing at Zeppelin Development’s Taxi mixed-use campus. Boa Technology will continue to occupy its 87,787-square-foot office at 3575 Ringsby Court. The lease is one of the largest commer- cial lease transactions in Denver this year, according to a Zeppelin Development representative. The 10-year lease renewal will com- mence July 1, 2025. Boa Technol- ogy has been a tenant at Taxi since 2012. Boa Technology was represent- ed by Andy Cullen and Natalie Froland of Tributary Real Estate, while Adam Larkey of Zeppe- lin Development represented the developer in the transaction. Boa Technology and Zeppelin Devel- opment have regularly partnered on community enrichment pro- grams through Boa’s tenancy, including a South Platte River cleanup and Colorado Village Collaborative, “This transaction illustrates the essential partnership between tenants and landlords, especially in times of economic challenge,” said Cullen. “As important stakeholders in our downtowns, landlords and tenants can come together to make an impact beyond the lease transition into the communities where they operate. BOA and Zeppelin are a prime example of this impact.” The Taxi campus recently added a new fitness center, res- taurant and coffee shop, and the campus also features green roofs and LEED certified buildings, according to Kyle Zeppelin, pres- ident of Zeppelin Development. The Taxi community includes 10 buildings, 150 businesses, 350,000 sf of commercial office space and 300 full-time residents. Other News n ENGLEWOOD – Kodiak Building Partners moved its headquarters to the Denver Tech Center, nearly quadrupling its office footprint. The company moved from its 9,000-square-foot space at 1745 Shea Center Drive in Highlands Ranch to a 32,000-sf office in the Meridian Corporate Center at 9780Mount Pyramid Court, Suite 300. The property features a con- ferencing facility, a fitness center and a property manager on-site, according to a LoopNet listing. Kodiak opted to move to the bigger space to better accommo- date its current workforce while allowing for continued growth, a representative from Kodiak said. The representative noted that developing space for collabora- tion and creativity was important for the company, and the fitness center and surrounding walking paths on the campus also attract- ed the company to the new space. CBRE represented Kodiak in the lease transaction, which took place in the first quarter, and the landlord was represented by Cushman & Wakefield. Kodiak acquires and operates building materials companies that build residential and com- mercial properties across the U.S. The company employs 6,000 people nationwide, including 900 employees in Colorado and roughly 75 at Kodiak’s headquar- ters. n FRONT RANGE – A flexible workspace provider added 14 new hybrid workspace locations in the Denver suburbs. This year, IWG has opened more than 600 locations globally, with 300 locations in the U.S. The majority of IWG’s new locations are planned in the center of local communities to provide a bet- ter work-life balance for workers and to meet the rising demand of shorter commutes. IWG opened the largest por- tion of new locations in the U.S. in the West region, with 85 new locations. Themajority of the new Colorado locations are centrally located in the Denver metro area, including in Denver at 789 Sher- man St., Centennial at 8085 S. Chester St., Arvada at 6275 Joyce Drive, Golden at 350 Indiana St., Aurora at 14001 E. Iliff Ave., Wheat Ridge at 4251 Kipling St., and Littleton at 10901 W. Troll- er Drive. The company opened several locations in the North- ern Colorado corridor, including in Fort Collins at 1212 Riverside Ave., Greeley at 1200 11th Ave., Louisville at 285 Century Plaza and Boulder at 3065 Center Green Drive. IWG also opened locations in Colorado Springs at 5925 Del- monico Drive, Evergreen at 32045 Castle Court and Sterling at 214 S. Third St. IWG offers hybrid workspace solutions for any business at more than 4,000 locations through mul- tiple workspace brands, includ- ing Spaces, Regus, HQ and Signa- ture. The company is on track to add roughly 1,000 locations glob- ally over the next year. According to IWG research, 60% of workers express a desire for a workspace within 15 minutes of their homes. Migration out of major U.S. cit- ies is up 59% compared to pre- pandemic levels, a study by IWG andArup found. n DENVER TECH CENTER – Savills facilitated two office subleases in one of the largest employment hubs in the state. Allium subleased the entire the third floor at Stanford Place II, located at 7979 E. Tufts Ave. in Denver, from Western Union. The lease for the 21,341-sf space began Dec. 1, and the lease term will endMay 31, 2031, after seven years and six months. Brendan Fisher, Connor Monahan and Devon Kahle of Savills repre- sented Western Union in the sub- lease, and Frederic de Loizaga and Layne Voorhees of CBRE representedAllium. Toll Brothers subleased 13,431 sf at 7100 E. Belleview Ave. in Greenwood Village from Verisk Analytics. The sublease began Dec. 1 and will end March 30, 2030, after six years and four months. Fish and Kahle also represented the sublandlord in this sublease, and Josh Pons and Andrew Blaustein of Newmark represented the subtenant. n STRASBURG – A free- standing office/shop building in downtown Strasburg has traded hands for $1.34 million. Strasburg Management Group LLC purchased the owner- user building at 1477 Main St. from Maverick Holdings LLC in November. The property, situated on 0.23 acres, includes a yard. Heath Honbarrier and Nick Beach of Trevey Commercial Real Estate represented the sell- er. Matt Trone of Cushman & Wakefield represented the buyer. n GOLDEN – MIH2 USA Inc. leased 6,346 square feet of office space at 701 12th St. in downtown Golden. Dan Prevedel of Malman Commercial Real Estate rep- resented the tenant in the lease transaction. Brian Wingate and Alan Polacsek of Newmark rep- resented the landlord, CPMA II LLC. The tenant does business as Fortescue, an integrated green technology, energy and metals company based inAustralia. n DENVER – NAI Shames Makovsky facilitated a turnkey lease in the highly sought-after River NorthArt District. Hey Girl Designs LLC leased 5,741 sf at 2911 Walnut St. The tenant was represented by Anna Hew of Commercial with Impact. Paul Cattin and Adam Hubschman of NAI Shames Makovsky represented the land- lord, Brookside Holding LLC. Hey Girl Designs will operate the office doing business as Crush Studio, an interior design and production studio. n DENVER – A 5,657-sf office property in North Capitol Hill has sold for $1.25 million, or $221 per sf. Built in 1886, the property at 1638-1640 Logan St. sold at a cap rate of 4.39%. The fully occupied property features 15 offices, two kitchens, a kitchenette and eight parking spaces Joe Hornstein and Scott Fet- ter of NorthPeak Commercial Advisors worked with the seller, which is listed at 1640 Logan St LLC on Denver County public records, in the transaction. The undisclosed buyer was not rep- resented. The owner of the adjacent prop- erty bought the asset with plans to add a coffee shop to the first floor and keep existing tenants on the other floors, Hornstein said. s Boa Technology renews lease at Taxi campus for 10 years by Jill Jamieson-Nichols The Colorado Springs office market remained relatively active in the third quarter com- pared with many markets across the country, according to Cush- man & Wakefield | Colorado Springs Commercial. In its third-quarter Market- View report on the Class A/B office market, the company said themarket is seeinga fair amount of leasing activity among tenants smaller than 5,000 square feet and tenants larger than 40,000 sf. The vast majority of larger ten- ants are defense related, while, “The midmarket has remained relatively sluggish,” the report said. “While we only saw modest positive absorption (6,903 sf) in the third quarter, leasing activ- ity remains positive. Despite the fact that every transaction seems to be very labored, and reaching resolution is a challenge, trans- actions are still getting complet- ed,” said Peter Scoville, principal with Cushman & Wakefield | Colorado Springs Commercial. Average asking lease rates continue to climb, a trend the company expects to continue into 2024. “The primary driver for that is the increase in ten- ant improvement costs that we continue to see escalating well above current inflation rates,” Scoville said in the report. “In addition to the fact that lease rates are increasing in order to keep up with the tenant improvements, we are seeing an increasing number of transac- tions where tenants are having to come out of pocket to fund their own tenant improvements in order to deliver space that suits their requirements.” The average asking lease rate in the third quarter was $17.97 per sf, with triple-net expenses of $9.28. Lease rates ranged from a low of $16.93 in the central business district to a high of $18.88 in the airport submarket. Direct vacancy decreased to 13.29%, while overall vacancy increased to 17.64%. “The forecast for the balance of the year is that we likely see things slow down in the fourth quarter and early into 2024, but given momentum in the market, an overall sentiment, combined with the fact that most compa- nies have sorted out their post- COVID space needs, we antici- pate activity picking up early in 2024,” Scoville noted in tihe report. s Colorado Springs office market remains ‘relatively active’ Market Update Cushman & Wakefield | Colorado Springs Commercial MarketView Cushman & Wakefield | Colorado Springs Commercial MarketView