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Page 16 — Office & Industrial Quarterly — June 2021 www.crej.com OFFICE — MARKET OUTLOOK greater. For the time being, COVID-19 has flipped the market on its head and quickly turned a landlord’s market in favor of tenants. This won’t last long. Across the nation, sophisticated busi- nesses took advantage of mandated lockdowns and stifled business velocity to strategize long-term corporate real estate strategies. Since the first quar- ter of 2020, there have been over 25 announcements of firms either relocat- ing to or expanding in Denver, many of which are coming from high tax, high cost-of-living coastal cities, such as HealthPeak Properties (formerly Irvine, California), Palantir Technologies Inc. (formerly Palo Alto, California) and DAT Solutions (formerly Portland, Oregon). Investors, privy to evolving sentiment and seeking to enhance their own value strategies, have aggressively sought intel into the do’s and don’ts of the Denver office capital market space. Anecdotally, our office has not experi- enced a greater surge of interest from out-of-state investors and companies looking into Denver than during the prior 12 months. A tsunami of new capital, new residents, new businesses and, most importantly, new jobs is entering Denver at an unprecedented rate in a post-crisis environment. Den- ver arguably out-competes the majority of U.S. cities in balancing a strong qual- ity of life, overall tax liabilities and the accessibility of a true live-work-play atmosphere. Even when companies don’t choose Denver, their employees do. Approximately 8.6% of workers in Colorado are remote workers, accord- ing to a 2020 FlexJobs report. And, with Denver consistently ranked as a No. 1 best city to live in with approximately 20% of its population comprising mil- lennials, it is extremely well positioned to recover coming out of COVID-19. COVID-19 accelerated many work- place trends that we did not anticipate seeing until several years into the future: workforce mobility; greater square-foot-per-employee and hybrid workspaces; the movement of mil- lennials from the urban core into suburban and other remote areas; and a slow, steady push toward greater employee privacy. Prepandemic, employees were reporting fatigue from 100% open office plans. If these employees are returning to those same spaces, they are likely to struggle to achieve the same level of privacy (and noise control) that they’ve since become accustomed to at home. Indi- vidualistic health and wellness are like- ly to be emphasized moving forward, allowing landlords the ability to dust off their office gym amenities and flip on the lights. s thevin.campton@colliers.com Continued from Page 1 have a good sense of the contrac- tor’s project load and subcontractor availability. Given the vital role of timing right now, ensuring your gen- eral contractor has the resources to move quickly is essential. Once you’re into the construc- tion process, quick decision-making remains crucial to keeping projects on track financially and with respect to schedules. The sooner contracts are signed, the sooner the general contractor can lock in prices. On a recent office TI project, for example, we saw a project budget increase by 3% for metal stud framing, 9% for plumbing, 7% for HVAC and 5% for electrical – all within the three-week period of the prime contract negotia- tion. As a result of current market conditions, many subcontractors on projects right now will only guaran- tee bids for one week, underscoring the importance of quick decision- making. In spite of the challenges within the market right now, a successful TI project within a reasonable budget still is absolutely within reach for those who act decisively and engage with an experienced, well-connected general contractor. s nickgroeger@taurus-builders.com Groeger Continued from Page 10 to support bilateral communication flow. Receiving feedback and input from employees is just as essential as feedback coming from the execu- tive level. Commercial real estate profession- als are being challenged to rethink the future of work and workplace. Addressing the four pillars of the nexus of sustainability through an integrated approach is critical to answer the big questions commer- cial real estate teams are faced with today. By reimagining the workplace to maximize human, social, environ- mental and economic opportunity, leaders can turn their commercial real estate assets into tools for inno- vation, community building, climate resiliency and financial gain. This is the foundation of high-performance placemaking – and the future of commercial real estate. s emmy@stok.com adam@stok.com So Continued from Page 15 With this enhanced productivity also comes drastically improved employee satisfaction and staff engagement rates, making workplaces even more functional and stable. Maximizing the potential of a property and incorporat- ing the most ideal solutions demand that all environmental impacts are considered and addressed as early as possible, even at the start of building design. Of course, an additional bene- fit to a wellness-based building is also perhaps the most notable – an overall improved relationship between people and the environment. Together, all of these benefits deliver actual value to both real estate professionals and their clients as the world emerges out of a pandemic and looks for spaces to support healthy operations. s ramie_vagal @mohawkind.com Vagal Continued from Page 15 GriffisBlessing.com info@gb85.com 303.804.0123 Your full service property management specialists for 35 years and counting. We make it our business to manage yours Over 6 Million Square Feet under Commercial Management We recommitted to improving the experience for all our partners. That means providing creative underwriting to close even the most complicated deals, building stronger relationships, collaborating more and delivering solutions that move your transactions forward. A Partnership Committed To Your Success © 2021 Stewart. All rights reserved. | 678457935 Contact me today to learn more. Stewart Title National Commercial Services Denver Division Martin Gibeau Vice President 303.780.4060 main mgibeau@stewart.com stewart.com/commercial