Why Tenants and Investors Still Love the 'Burbs
This week, Denver Gold inked a 11k SF lease at Pavilion Towers’ 2821 S Parker Rd in Aurora. Owner Boxer Property’s Brian Cole tells us that the suburbs are still contenders against more fashionable markets (Downtown, LoDo) when it comes to attracting tenants. They compete on price, but that’s not all. Suburban properties usually offer free parking, and “traffic is usually better and there's easier access in and out of the buildings when tenants need to get to meetings and appointments,” he says, adding that a lot of tenants still prefer the ease of a suburban location to the various “hassles of Downtown.” KW Commercial Real Estate’s Barry Bounds repped Denver Gold in the deal.
Deep-pocketed investors are still keen on the 'burbs too. This week, AEW snapped up Waterview I, II, and III in Centennial from CalSTRS, a total of 366k SF. The LEED Gold property is 90% leased. AEW’s Juan Dueñas says that one of the major attractions of this kind of suburban property are the available large blocks of contiguous space, which are much harder to find in the city. He notes that more than 2M SF of suburban Denver space has been absorbed just in the last two years, and he expects that to continue as the metro economy continues to expand. Cushman & Wakefield’s Mike Winn and Tim Richey repped the seller in the deal.