Downtown Denver Development Map Highlights $5 Billion in Investment
The Downtown Denver Partnership has released its 2018 Downtown Denver Development Map detailing projects that have been completed or are currently under construction since 2013. During this time, $5 billion of total investment in development has been completed or is under construction in Downtown Denver, totaling 83 projects, 4 million square feet of office space, 10,000 residential units and 3,200 hotel rooms.
The report was released at the Partnership’s annual Development Forum this morning, an event attended by more than 400 business and civic leaders. Market experts Kevin McCabe of Newmark Knight Frank, Paul Washington of JLL, Pete Schippits of CBRE, and Steve Schwab of Cushman & Wakefield provided insights on the future of the office, retail and hospitality, and residential sectors and showed how Denver stacks up against peer cities in terms of development. These market experts shared the following key takeaways:
OFFICE: Roughly half (46%) of all the new office space built since 2013 has been leased by tenants not previously in downtown, up from 17% in the 2008-2010 cycle. Today, the top sectors leasing new space downtown are Tech, Healthcare and Real Estate. (Source: Newmark Knight Frank)
HOSPITALITY: Downtown hotel rooms have doubled in the last 10 years, with product serving all market segments. Construction may slow slightly as recent hotel projects continue to be absorbed in the market. (Source: Cushman & Wakefield)
RETAIL: With new high-impact retailers like Target (July 22nd opening), Whole Foods and Warby Parker, downtown’s retail vacancy rate is now at 3.3%. Retail growth will continue to follow residential, visitor and employment growth. (Source: Cushman & Wakefield)
HOUSING: Downtown residential growth is directly related to downtown job growth. In 2000, downtown Denver had 22 jobs for every housing unit. Today, the Denver ratio is closer to 6.5 jobs/housing unit. Our urban peers, including Seattle (5.5) and Austin (5.1), are performing at lower ratios, suggesting downtown Denver has more downtown housing development opportunities ahead. (Source: CBRE)
BENCHMARKING: When compared to Austin, Nashville and Salt Lake City, Denver ranks high for population growth, job growth, airport growth and transit infrastructure, but is falling behind in terms of affordability and commute times. (Source: JLL)
Attendees also had the opportunity to engage directly with developers behind some of Downtown’s most transformational projects- Market Station, West Lot, The River Mile, North Wynkoop, World Trade Center, and Platte Fifteen.
Intended for developers, investors and brokers interested in Downtown Denver, the Downtown Denver Development Map highlights key investments within the boundaries for Downtown Denver. The annual map tells the powerful story behind Downtown Denver development and encourages continued investment by highlighting projects completed in the past five years in addition to projects under construction. Tracking development is a strategic action to ensure Downtown Denver continues to be the primary economic hub in the region, as outlined in the 2007 Downtown Area Plan.