Denver Office Project Lands 30 KSF Tenant
This 100,000-square-foot building is expected to come online in 2025.
Bow River Capital, a private alternative asset manager, will relocate its headquarters to 30,000 square feet at Magnetic Capital’s 2nd & Adams, a 100,000-square-foot office project in Denver. Groundbreaking is expected this April, while completion is slated for the third quarter of next year.
The development team also includes OZ Architecture and general contractor Mortenson Construction. CBRE First Vice President Blake Holcomb is spearheading the leasing efforts at the property.
Upon delivery, the five-story building will comprise some 20,000 square feet of retail space and a 5,600-square-foot rooftop with a bar and a restaurant, along with a first-level restaurant and a lobby open to the bar area.
The development will rise at 3250 E. Second Ave. in the Cherry Creek neighborhood, close to a host of dining and retail options, including the Cherry Creek shopping mall, and less than 2 miles from Belcaro Shopping Center. Downtown Denver is roughly 4 miles from the site. The location is also some 5 miles from a 240,000-square-foot office building that opened last summer.
Denver’s office sector faces headwinds
Denver’s listing rate clocked in at $30.2 as of December, 1.1 percent higher year-over-year, but still considerably lower than the $37.6 national average, according to the latest CommercialEdge office report. The market’s vacancy rate reached 22.2 percent at the end of last year, up 400 basis points from the same period of 2022.
In one of the largest deals of last year in the metro, Xcel Energy-Colorado preleased more than 220,000 square feet at T3 RiNo, a six-story Class A building in Denver’s River North neighborhood. Upon moving into its new regional headquarters in 2025, Xcel Energy is expected to be the largest office tenant in the RiNo submarket.
Another significant transaction involved Kaiser Permanente’s lease extension at Greenwood Plaza, a 197,528-square-foot office campus in Eaglewood, Colo. Cushman & Wakefield brokered the 120,979-square-foot agreement on behalf of the landlord.
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