Franklin Street Inks 121 KSF Denver Lease Renewal

Greenwood Plaza. Image courtesy of Cushman & Wakefield

Kaiser Permanente has extended its lease at Franklin Street Properties’ 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, while JLL represented the tenant.

Situated on more than 8 acres at 6550 and 6560 Greenwood Plaza Blvd., the office complex encompasses two buildings of three and five stories, respectively. Franklin Street acquired the Class A asset in 2005 for $44 million, according to CommercialEdge information.

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Kaiser has been anchoring the office campus since 2013, the same data provider shows. AT&T and Bright Horizons also have leases at the property.

Greenwood Plaza is near the Village Center Light Rail Station and Interstate 25, being surrounded by a variety of retail and dining destinations. Downtown Denver is some 13 miles northwest.

Cushman & Wakefield Managing Directors Ryan Stout and Nathan Bradley, along with Director Zachary Williams and Associate Broker Kiley Crews, brokered the transaction on behalf of Franklin Street. JLL Executive Vice President Patrick Bolick and Vice President Kurt Liss represented the tenant in the lease renewal.

Denver office vacancy rate hits record high

The prominent office markets in the Western region observed a notable surge in vacancy rates, according to a recent CommercialEdge report. This can be attributed to the substantial presence of tech companies and the prevalence of remote work.

In Denver, a market where 27.5 percent of employees are working remotely, the office vacancy rate reached 20.2 percent as of May, report data shows. The index recorded a 3 percent increase year-over-year, making it the highest vacancy rate in the region and the third highest nationwide.