Denver, CO Office Overview
Notable Denver commercial real estate scenes include the Capitol Hill, Cherry Creek, and Five Points office submarkets. With a metropolitan population of over 2.8 million people, Denver is the capital of Colorado, and the most populous city in the State. A strong blend of aerospace, telecommunications and technology industry create a robust demand for Class A office space in the market.
As of mid-2017 the Greater Denver office market encompasses nearly 53 million square feet of existing office space in properties larger than 50,000 square feet. Denver's central location in the U.S. attracts both traditional and high-tech business that require Class A office space and help to drive the ongoing growth of the Denver commercial real estate market.
Denver, CO Office Inventory Description
Recently named the best place to live by U.S. News & World Report, Denver attracts the well- educated and highly skilled work force that the growing industry in the city requires. With a gross metropolitan product of over $178 billion annually the demand for white-collar office space in Denver remains strong. Nearly 67% of the office space in Denver is Class A or A+, while Class B office space adds another 32% of product to the market.
The Central Business District office market in Denver is home to the world-class office property that both credit tenants and investors demand. Located north of the I-70 and west of North Broadway, this submarket is home to prime office buildings such as the Granite Tower on 18th Street, the 1515 Arapahoe Street office property, and the historic Kittredge Building at 511 16th Street.
Denver, CO Commercial Inventory Breakdown
Total: 64,131,325 SF
By square footage range:
- 50k to 100k SF: 7,248,800 SF / 11.3% of total office
- 100k to 500k SF: 37,576,386 SF / 58.59% of total office
- 500k to 1M SF: 14,363,222 SF / 22.4% of total office
- > 1M SF: 4,942,917 SF / 7.71% of total office
- Class A+: 9,011,369 SF / 14.05% of total office
- Class A: 34,506,755 SF / 53.81% of total office
- Class B: 17,189,407 SF / 26.8% of total office
- Class C: 683,214 SF / 1.07% of total office
Denver, CO Green Office Space
Of the Top 30 Green Office Markets in the U.S., Denver ranks #7 for energy efficient office buildings. While nearly 5% of the office buildings larger than 50,000 square feet are LEED certified, just under 12% rank as Energy Star Certified and over 13% are recognized as green buildings.
The Union Tower West office building in the LoDo office submarket of Denver is an outstanding example of a green office building. Built in 2017, this 303,400-square- foot property boasts a LEED Gold certification. As tenants, national and global investors seek out green certified office assets for their use and portfolios, the green office trend will continue to grow in Denver.
Denver has ranked 7th on the 2017 National Green Building Adoption Index survey which looked at all commercial office properties in 30 major markets in the United States. The percentage of green certified buildings has increased nearly eight-fold, from less than 5% in 2005 to 38% through mid-2017.
Denver, CO's Top Office-Using Sectors
Denver is equidistant from Chicago, St. Louis, Los Angeles, and San Francisco, with the distribution and transportation sectors having a significant impact on the commercial real estate market in Denver. The energy & natural resources, aerospace, government, and telecommunications sectors are also significant creators of white collar employment and users of Class A office space in the city.
- Energy & Natural Resources – Newmont Mining, Noble Energy, Anadarko, EnCana, and Haliburton all create robust demand for office space in Denver.
- Aerospace – Lockheed Martin Corporation and United Airlines are two of the largest employers in Denver.
- Government – As the capital city Denver is home to a large government white collar office employment base, with institutions such as the Denver Federal Center, Byron G. Rogers Federal Building, Denver Mint, and the National Renewable Energy Laboratory.
- Telecommunications – The demand for white collar Class A office space in Denver is also driven by telecom companies such as Qwest Communications, Dish Network, and Comcast.
- Total Population678,467
- Male Population(50.0 %) 339,400
- Female Population(50.0 %) 339,067
- Median Age34.40
- Average Household Income$88,779
- Median Household Income$60,098
- Median Income Under 25$36,142
- Median Income 25-44$67,957
- Median Income 45-64$65,412
- Median Income Over 65$41,329
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