Colorado-Real-Estate-Journal_435994

O f the many office invest- ment trends that we are seeing across the country, one of the most interesting is the changing complex- ion of who is investing in office. In the last two months, Adam Neuman, the infamous former WeWork CEO, paid $116 million for a 252,000-square-foot office project in South Florida. Telis Mistakidis, the Greek copper billionaire, was behind the acquisition of 799 Broad- way in New York City for $255 mil- lion. Floyd Mayweather Jr. provided equity to 601W Cos. to recap a 10 million-sf office portfolio. Richard Sahian, founder of Fashion Nova, just purchased an office building in Beverly Hills that will be its new headquarters for $118 million. As lower office sales volumes persist, and office valuations contin- ue to face signifi- cant headwinds, nontraditional office buyers have emerged to cap- ture opportunities. Ultra-high-net- worth investors, developers and corporate users are proving to be formidable players and are investing during this gener- ational opportunity to create value in office investment. There have been 30 notable office sale transactions year to date (as of Thanksgiving) along Colorado’s Front Range. The total dollar volume equates to nearly $500.2 million, and the total square footage is about 6.22 million sf. The good news is the number of office buildings trading this year exceeds last year’s total of 27, and we anticipate a few more sales to happen before year’s end. Normally, the number of transac- tions would range between 45 and 65 office sales per year. We saw 54 and 35 office trades in 2022 and 2021, respectively. As you would expect, there has been a dramatic decrease in dol- lar volume. Since 2021, we’ve seen total dollar volume go from $2.14 bil- lion, to $3.02 bil- lion in 2022 and $1.05 billion in 2023. Given the value deterioration that has occurred, it’s unclear when we will see dollar volumes above $3 billion, but there is a level of opti- mism building in investment circles INSIDE Just right PAGE 10 Designing for evolving workspaces requires finding the perfect fit December 2024 PAGE 15 PAGE 21 Industrial Era Taking a beat from Taylor Swift, Denver industrial enters boom era Outdoor storage These industrial properties are essential for industries seeking flexibility Please see Thiel, Page 12 Who is buying office might surprise you Larry Thiel Managing director, JLL Capital Markets Sean Whitney Senior director, JLL Capital Markets Hilary Barnett Senior director, JLL Capital Markets Crescent VII and VIII