Before the pandemic hit, Denver was one of the nation’s most promising office markets thanks to its highly rated education system, educated workforce, diverse lifestyle amenities and business-friendly environment. Although the coronavirus has slowed or halted new office construction throughout the metro, 20 properties encompassing some 3.3 square feet of office space were under construction as of March, according to CommercialEdge data.
All but four projects are slated for delivery in 2021, largely due to the growing presence of homegrown or large companies such as Kiewit and Ent Credit Union. Most of the underway developments have seen little preleasing so far, but activity will likely pick up as we advance into the year.
Two properties totaling 389,863 square feet were delivered year-to-date in 2021. The largest was Denver Health’s 293,000-square-foot Outpatient Medical Center—a clear sign indicating heightened demand for physical office space. The list below highlights the largest office projects underway in the metro, based on CommercialEdge data.
|Rank||Property Name|| Office
|1||Block 162||584,737||Central Business District||Patrinely Group||Q2 2021|
|2||4885 S. Quebec St.||355,419||Denver Tech Center||Stonebridge Cos.||Q1 2022|
|3||9480 Federal Drive||300,000||Colorado Springs||Ent Credit Union||Q2 2021|
|4||Kiewit Regional Headquarters – Building 1||252,000||Meridian||Kiewit||Q2 2021|
|5||One Platte||238,811||Denver – Highland||Nichols Partnership||Q1 2022|
5. One Platte
In early 2020, a joint venture of Denver-based Nichols Partnership and Shorenstein teamed up to develop One Platte, a 250,402-square-foot premier office building in Denver’s Highland submarket. The five-story project is rising at 1701 Platte St., on the last remaining development site of scale in the Central Platte Valley, replacing a 1.5-acre surface parking lot.
U.S. Bank financed the construction with a $79.5 million loan. Completion is expected in the first quarter of 2022. The property will include 238,811 square feet of office space and 11,591 square feet of ground-floor retail. One Platte will feature 60,000-square-foot floor plates, a 245-seat multipurpose event space, a rooftop deck, an upgraded air filtration system, acoustic awareness and ambient sound mitigation, as well as multiple outdoor spaces.
4. Kiewit Regional Headquarters – Building 1
Omaha, Neb.-based construction and engineering company Kiewit is developing its new regional headquarters in Lone Tree, Colo. Phase I consists of a 252,000-square-foot, five-story office building and a parking garage, expected to come online in the second quarter of 2021. A smaller building will be added in early 2022, featuring a pedestrian spine with a cafeteria and coffee shop, both open to the public.
Kiewit Building Group serves as the general contractor for the project and Stantec is the architect. Located on more than 8 acres at the junction of NEC Trainstation Circle and Skyridge Avenue, the property is near the Sky Ridge Station and the master-planned RidgeGate community. It will house approximately 1,150 Kiewit employees, including the company’s existing Colorado-based staff of 900.
3. 9480 Federal Drive
Ent Credit Union’s project at 9480 Federal Drive in Colorado Springs, Colo., is another headquarters rising in suburban Denver. The 300,000-square-foot office project broke ground in October 2019 and is scheduled to open in the second quarter of 2021.
The five-story asset, spreading across 27 acres near InterQuest Parkway and Interstate 25, is 6 miles away from the company’s current headquarters at 7350 Campus Drive and will be occupied entirely by the state’s largest credit union. Additionally, the new building will allow the company to consolidate its locations and leases in the area, which accommodates its call center, consumer and mortgage lending, information technology, finance, human resources, administration and executive divisions.
2. 4885 S. Quebec St.
Local developer Stonebridge Cos. is expanding its portfolio with the addition of a 526,025-square-foot mixed-use project at the edge of Denver Tech Center. The company started construction on 4885 S. Quebec St. in April 2020, shortly after the pandemic took hold. The project replaces a 1995-built Extended Stay America hotel.
Upon completion, scheduled for the first quarter of 2022, the 18-story property will include 24,955 square feet of first-floor retail, a 235-key hotel from floors three to seven and 355,419 square feet of office space from floors eight to 18, as well as underground parking. The project is adjacent to Belleview Station, a mixed-use development and transportation gateway that includes apartments, restaurants and office buildings.
1. Block 162
The largest property underway in Denver is Patrinely Group and USAA Real Estate Co.’s Block 162, a premier office building rising at 675 15th St. in the city’s central business district. Construction on the 594,637-square-foot, 30-story property—which also includes a 9,900-square-foot retail component—started in June 2018, with completion slated for the second quarter of 2021.
Pacific Coast Capital Partners provided $188.8 million in construction financing in 2018. The developers selected Gensler to design the building and Swinerton Builders as the main contractor. Sherman & Howard will occupy 60,000 square feet at the property, which will serve as the law firm’s headquarters.