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t Avison Young Denver, our team of commercial real estate experts brings unparalleled market insight and experience across various sectors. We offer thoughtful perspectives on the latest trends and challenges shaping the Denver market.
Office
Howard Schmidt, Office Tenant Representation, shares his insights:
Tenants are increasingly seeking office sensors to track employee presence and space utilization. They also want control over elevators and suite entry points.
The appeal of office space has shifted from just a place to work to an environment that fosters collaboration and flexibility. Green building certification is now a top priority, driven by company initiatives and employee demand, particularly among younger generations.
On the rise: huddle areas, collaboration spaces, head-down work areas, fitness facilities with showers/lockers, healthy grab-and-go food options, and good security. On the decline: dated buildings with few amenities, poor or no fitness facilities, bad elevators, and gimmicks like ping pong tables.
Security is now a top concern, especially downtown. Access to natural light, quiet spaces, outdoor seating areas, and fitness facilities are highly valued when looking for new office space.
Industrial
Dawn McCombs and Ryan Almaleh, Industrial Services, weigh in:
Emerging technologies like automation and robotics require wider column spacing in facility design. Robotics need open space to maneuver, so new industrial buildings must accommodate this.
Power is a major concern for manufacturers due to clean technology and data center usage. Electrical power is top of mind for new manufacturers looking to locate or scale their operations in Colorado.
We're seeing new industrial construction reach 40' clear height near DIA. Build-to-suit and rail-served sites appeal to tenants with unique operational requirements, offering customization, efficiency, cost savings, and long-term growth potential.
Landlords are incorporating private offices, conference rooms, break rooms, and open-cubicle layouts in their speculative suites. Suites range from 1,500-3,000 SF, depending on the building size.
Hospitality
Chris Kilcullen, Senior Hotel Broker, shares his expertise:
The current economic climate has impacted gross operating profit due to rising labor costs, insurance, property taxes, and interest rates. Transactions with maturing debt or upcoming Property Improvement Plans (PIPs) are the best opportunities today.
Extended-stay hotels represent the most active segment of the hospitality market, with multiple new brands launched by major franchises. With higher labor costs balanced by lower overall operating costs, extended-stay hotels have proven profitable. We have active buyers looking for good sites across the greater Denver metro.
Ready to unlock the full potential of Denver's dynamic real estate market? Connect with a trusted local expert at Avison Young and explore opportunities that align with your goals. Visit Avison Young Denver to get started today.
