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— Office Properties Quarterly — October 2015
PEACE OF MIND
It is knowing your real estate investment is protected by
an industry leader
trusted for more than 162 years.
It is the confidence of having a financial partner with the
largest reserve for claim losses in the industry.
It is relying on a
nationwide team of professionals
ready
to help you with any type of real estate transaction.
It is having access to a
full array of title services
all
delivered by one strategic partner.
Chicago Title is a member of the Fidelity National Title Group,
the nation’s largest provider of Title Insurance services.
8055 E. Tufts Ave., Ste. 300, Denver, CO 80237
303-291-9999
Jerry Green
303-881-5116
April Lutz
Colorado’s Leader in
OFFICE MANAGEMENT
For thirty years, Griffis/Blessing has provided award-winning property
services along Colorado’s Front Range, now amassing over 4.3 million square
feet. To learn more about our services, please visit our website at
.
Phone: 303-592-1234 • Fax: 303-502-8982
Then
Now
Denver Highlight
D
enver continues to be one
of the most popular cities in
the U.S. for commercial and
residential expansion. The
thriving economy, diverse
industry landscape and year-round
mild climate makes Denver the
perfect environment for sustain-
able long-term growth. Selecting the
right location for your company and
avoiding unnecessary expenditure
is key for our community’s healthy
long-term growth.
It is no secret that this economic
boom, albeit great news, has created
a shortage of construction workers,
which is having a big effect on con-
struction pricing and project sched-
ules. With the variety of new build-
ings sprouting up all over the Den-
ver metro area, it can be challenging
for real estate brokers and site selec-
tors to create a true comparative
analysis for their clients that shows
apples-to-apples financial compari-
sons for site selection.
Performing a successful site
search and establishing probable
cost model requirements for new
headquarters, corporate office relo-
cations and retail rollouts requires
a detailed understanding of a build-
ing’s existing or proposed infrastruc-
ture and extensive experience with
the design and construction process.
It is great to see so many compa-
nies receiving economic incentives
and securing large tenant improve-
ment allowances to spur expan-
sions, relocations and new growth
across the metro area. Selecting
a site that optimizes a company’s
success is critical but the site condi-
tions, restrictions and requirements
may hold a host of
cost surprises that
could postpone or,
in some cases, dev-
astate a company’s
future.
Site selectors
typically have
preferred require-
ments for their
clients that will
dictate a certain
geographic loca-
tion with spe-
cific demographic
requirements.
Requirements like, “We have a
lot of millennials in our company
and need to be close to light rail,”
might suggest evaluation of build-
ings close to Union Station in Lower
Downtown or along the Interstate
25 corridor down to Lincoln Station
or up U.S. 36 to Boulder. Due to this
demographic requirement, you may
be comparing a historic building to
a modern one. This can add another
layer of complexity to the cost-mod-
el comparisons.
The Denver Tech Center has more
mid- to modern-aged buildings as a
whole. LoDo has numerous historic
buildings built in the early 1900s,
which creates intense due diligence
for building evaluation. Also, LoDo
has been the epicenter for new
building development downtown.
Site searches in LoDo may dictate an
evaluation of a historic building ver-
sus a mid- to modern-aged building.
New building developments like
16M, ZBlock, Triangle or Village Cen-
ter DTC may require the detailed
analysis of narrative core-and-shell
versus tenant-improvement-allow-
ance requirements. Details like
post-tension versus steel-framed
structures could impact whether
an internal stair is allowable or cost
prohibitive. Fine details like true
delivery dates for floor possessions
may become big cost items if basic
items, such as the new concrete
slab hydration process, are not fully
understood.
Concrete slabs when newly
poured can take a long time to dry
out. If the slab is not dried out, new
flooring will not adhere well and
you may have to perform expensive
remedies, such as bead blasting the
floor and adding an epoxy coating
to trap the moisture from rising.
Building access for deliveries may
be impeded when other floors are
under construction. New elevators
and stairwells may have extensive
inspection and reviews could slow
the completion of customization for
common areas.
Mid-aged buildings like 1801
California, Three Maroon Circle and
1225 17th Street are pretty straight-
forward for evaluations. Items like
direct digital controls, Americans
with Disabilities Act upgrades to
core components, or maintenance
of LEED certified building require-
ments can be quickly identified and
allocated appropriately. Where this
process can get tricky is creating a
clear understanding of who should
be responsible for each scope item
and clearly define who is financially
Don Fitzmartin
President and
CEO, Fitzmartin
Consulting Co.,
Denver
Analysis that shows apples-to-apples financial comparisons for historic, mid-aged and
new buildings in metro Denver can be challenging.
