At Avison Young Denver, a team of commercial real estate experts brings deep market insight and a wealth of experience across various sectors. These specialists offer thoughtful viewpoints on the latest trends and challenges shaping the Denver market. Explore their latest perspectives on real estate decisions influencing the office, industrial and hospitality sectors.
Office
Featuring Howard Schmidt, Office Tenant Representation
What tech integrations are tenants requesting most often?
Tenants are often utilizing office sensors to see which employees are coming in, how often or not, and what part of the office they are utilizing the most/least. They are also looking for the ability to control elevators and suite entry points.
How have tenant preferences shifted regarding office design, layout, and amenities?
The appeal, amenities, and flexibility of office space are increasingly important as companies aim to create environments in which employees want to work. Collaboration spaces and touch-down areas are now common requirements in most office layouts. Green building certification is also a growing priority, driven by company initiatives and employee demand, particularly among younger generations. Finally, large firms with multiple locations are often the most committed to having more of their offices in environmentally friendly buildings.
What types of amenities are on the rise, and what types of amenities are on the decline?
On the rise: Huddle areas and collaboration areas/zones inside and outside, head-down work areas, building conference facilities, fitness areas with showers/lockers, healthy grab-and-go food options, and good building security.
On the decline: Dated buildings with few amenities, poor or no fitness facilities, bad elevators, dated cafes, and gimmicks such as ping pong tables, cornhole, etc.
What shifts have occurred in tenant expectations regarding health and safety protocols, and are these expectations still shaping leasing decisions?
As mentioned above, security is more important now than ever — especially downtown. Access to natural light, serene/quiet spaces, outdoor seating areas, and again fitness facilities are all a plus when looking for new office space.
Industrial
Featuring Dawn McCombs and Ryan Almaleh, Industrial Services
How are emerging technologies, like automation and robotics, impacting facility design and tenant requirements?
Column spacing is a significant factor in facility design as more automation is integrated into pick-and-pack distribution. Robotics require more open space to maneuver, so wider column spacing is needed in new industrial buildings.
What infrastructure upgrades (e.g., transportation, energy) are necessary to support future Denver industrial growth?
Power is a big concern for many manufacturers these days. With clean technology becoming much more relevant, along with data center usage, electrical power is top of mind for new manufacturers looking to locate or scale their operations in Colorado.
How are space utilization needs changing among industrial tenants in Denver, such as the demand for high-clearance ceilings, cross-docking, or truck courts?
We’re starting to see new industrial construction reach 40′ clear height with the latest developments near DIA. Build-to-suit and rail-served sites, like Access 25 Logistics Park, appeal to tenants with unique operational requirements, allowing them to achieve an ideal balance of customization, efficiency, cost savings, and long-term growth potential. While Denver remains a regional distribution hub, more national companies are beginning to consider Denver as a distribution center capable of reaching surrounding states, which helps reduce overall logistics expenses.
What are typical checklist items a landlord will complete to make a space market-ready?
Most Landlords are incorporating a few private offices, a conference room, a break room, and an open-cubicle layout for their speculative suites. Most suites range in size from 1,500–3,000 SF, depending on the size of the building.
Hospitality
Featuring Chris Kilcullen, Senior Hotel Broker
How are broader economic conditions influencing the demand for hospitality sales in Denver?
The current economic climate has impacted gross operating profit, with rising labor costs, insurance, property taxes, and interest rate pressure affecting pricing. The best opportunities today are transactions with maturing debt or upcoming Property Improvement Plans (PIPs) required by the brands. While the industry remains strong, high construction costs slow new development projects, making acquisitions increasingly appealing.
Are there shifts in consumer preferences toward particular property types (e.g., luxury, extended stay, boutique hotels)?
Extended-stay hotels represent the most active segment of the hospitality market, with multiple new brands launched by every major franchise. With higher labor costs balanced by lower overall operating costs, the extended-stay segment has proven especially profitable. We have active buyers looking for good sites all over 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.
