Avison Young in Denver
Avison Young’s Denver office opened in December 2012 and is rapidly expanding through the addition of established professionals and its continued efforts to forge strong bonds with Avison Young’s offices throughout the U.S., Canada, Europe and Mexico.
The Denver office is well-suited to serve a wide variety of commercial real estate opportunities, including telecommunications, financial services, technology, biomedicine, energy and U.S.-based companies with international offices. The Denver office has developed organically by adding strategic service lines to better serve our clients. Denver-based brokers provide a best-in-class platform that assist the various sectors. Services include tenant representation, landlord representation, corporate services, capital markets, retail, research and property management.
Denver, affectionately known as the ”Mile High City,” is renowned for its commitment to business, its access to a broad and highly educated workforce and its fine quality of life. Since the last recession, Denver has diversified while growing in the national spotlight. Denver is rising in popularity as an affordable, vibrant city in which to live and work, with amenities that appeal to many generations. Population has grown substantially, particularly from the in-migration of millennials, who are drawn to the employment opportunities and quality of life that Denver provides. Population in Metro Denver now totals over 3.0 million.
Denver prides itself as a leader in the energy, aerospace, technology, financial, healthcare and telecommunications industries while it is continuing to diversify its business base each year. The Denver region is also experiencing increased interest from national and international companies because of its skilled workforce, affordable business operating costs and favorable tax policies. The Denver Metro Region has taken initiative in planning for future infrastructure needs by building a new international airport, designing a multimodal transportation infrastructure, and smartly planning residential and commercial development to accommodate for growing population areas.
The Denver metro area office market contains approximately 138 million square feet (msf) of office space across all building classes. The Denver office market has experienced years of sustained growth, with the current development cycle representing the most construction since the mid-1980s. Denver’s largest users of office space include industries such as energy, aerospace, technology, finance, healthcare and telecommunications. Ten Fortune 500 companies, including Lockheed Martin, Arrow Electronics, Western Union, DaVita and Dish Network, maintain a headquarters office or large presence in the Denver metro area.
With nearly 198 million square feet of retail space available in the metro area, Denver can hold its own when it comes to shopping, whatever shoppers may seek. Denver’s population boom is driving demand for retail product. Vacancy in retail space continues to trend downward, particularly in walkable areas that support the live, work and play lifestyle. In addition, grocery-anchored developments and other need-based retail establishments will continue in demand to support Denver’s growing population.
Denver’s industrial market, comprised of nearly 240 million square feet of flex and distribution/warehouse inventory, continues to grow at a fast pace thanks to the city’s favorable economic climate and recent population boom. Denver industrial asking rates have increased substantially since 2012 due to demand from the marijuana industry. High demand for space has led to a building boom for Denver’s industrial market with an increased amount of preleasing in proposed/under construction buildings. Due to its central location and superior logistical routes, the Denver market is driven mainly by warehouse and distribution properties. Online retail growth and Denver’s population boom will further boost warehouse and distribution properties in Denver in the coming years.
Mass transit developments continue to enhance real estate values and foster growth throughout the metropolitan area. Across the region, office and industrial demand remains strong as small business job growth in Colorado continues to flourish and the region continues to attract corporate headquarters and significant distribution facilities. Denver's move to a first tier investment market continues to attract investors to the area. The city has benefitted from outside capital seeking investments across all product types, particularly from coastal investors looking to diversify their portfolios and reduce risks. Cap rates compression, particularly in Denver’s downtown area, has led to the highest pricing ever. The frantic price escalations witnessed in the past few years is slowing but Denver’s healthy economy ensures continued strong investment interest.