Broe to Develop Phase 2 of Denver Mixed-Use Project

250 Clayton. Image courtesy of Broe Real Estate

Broe Real Estate Group, the commercial real estate arm of The Broe Group, announced it will begin construction on 250 Clayton, an eight story mixed use-project located at 250 Clayton St. in Denver’s Cherry Creek Hill district, in the fourth quarter of 2023. The project will be the second phase of the firm’s development in the area. Following its topping out, the fully-leased 76,000-square-foot 200 Clayton is scheduled to open next year.

250 Clayton was designed by The Beck Group. The property will feature 175,000 square feet of office and retail space, with floorplates up to 27,000 square feet in size.  Situated in one of Denver’s most affluent neighborhoods, the two-building development is within walking distance of numerous high-end retail and dining offerings and within three miles of the city’s central business district.

Denver and the flight to quality

A recent uptick in vacancies and a drop in average rents give Denver’s office sector a muddy report card, despite a transaction volume of $3.03 billion year-to-date as of November and 2.47 million square feet of space in its pipeline, according to data from a November 2022 CommercialEdge report.

The city is one of many gateway metros to experience a rapid and persistent flight to quality in office sector. A third quarter report from JLL found older assets in Denver posted vacancy rates of 26.2 percent and newer assets were responsible for 42.7 percent of all new leases despite making up less than a third of the city’s available inventory.

Recently, 210 University, a 140,000 square foot office and retail building also in Cherry Hill, that had undergone a gut renovation in 2009, sold for $67.7 million. Elsewhere in the city, Menashe Properties Inc. acquired Stanford Place III, a 370,000-square-foot Class A tower, for $50 million.