DENVER-Denver's office investment market in 2013 is increasingly strong, with 3.4 million square feet valued at $641.1 million trading hands in the second quarter alone, according to recent numbers from Newmark Grubb Knight Frank. Year-to-date, 5 million square feet traded, valued at just under $900 million.
The investment market is poised to well exceed 2012's total of 10 million square feet sold, valued at $1.6 billion, says the firm. In the recent quarter's largest sale, Franklin Street Properties purchased 1999 Broadway from a joint venture of Broadreach Capital Partners, Equity West Investment Partners and Pearlmark Real Estate Partners. The 680,000-square-foot, 43-story office building sold for $183 million, or $269 per square foot.
According to Riki Hashimoto, executive managing director of the firm, “Denver has matured into a top 10 market in the country, with national and international investors committing to Denver.”
Currently, he says, “everyone wants to participate—from core and core-plus institutional groups, value-add and entrepreneurial equity to local operating partners with both institutional and private equity sources. Denver is drawing much of this attention because we are seen as a stable inland market with good macro-economics and a nice alternative to the highly competitive gateway cities.”
However, he adds, that big question on everyone's mind today is “how will this dynamic interest rate environment affect our investment activity?” That, he says, is a trend the firm is “carefully watching.”
We will continue to follow this topic as we learn more.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
