Construction of a $100 million, 18-story office tower in Lower Downtown will start next year, the third speculative office building in downtown announced this year.
They represent three of only four speculative office projects built there in 20 years. Trammell Crow Co. plans to develop a 335,000-square-foot speculative office building at 1900 16th St. on a 3.3-acre parking lot adjacent to the Gates Corp. headquarters. The master plan for the site includes a second 250,000- square-foot office tower to be developed in the future. The tower, designed by David Owen Tryba of Tryba Architects, is the third speculative office building planned for the Central Platte Valley.
International real-estate firm Hines plans to build a 260,000-square-foot building at 1515 Wynkoop, and Opus Northwest is planning a mixed-use development at 1400 Wewatta St. that includes 300,000 square feet of office space.
“Everybody’s trying to do an office building because vacancies are low and rents are going up,” said Bill Mosher, area director for Trammell Crow’s development and investment group. “There’s certainly demand for office space right now. Ours is the only one that is a tower.”
Lease rates for the building, to be completed in late 2008, will be in the mid-$20-per-square- foot range.
About 730,500 square feet of office space has been absorbed downtown this year, according to a report by Frederick Ross. Lease rates have increased up to 15 percent and are forecast to rise for the next few years.
If downtown absorbs 1 million square feet by the end of 2006, it will be a record-breaking year, surpassing 1985’s high of 965,000 square feet, according to Frederick Ross.
Staff writer Margaret Jackson can be reached at 303-954-1473 or mjackson@denverpost.com.
