Denver Commercial Space Forecast
Denver Business Journal – by Paula Moore
Grubb & Ellis Co. predicted Friday that the Denver area’s commercial real estate market will start a “slow recovery” in 2010, ahead of the national commercial market that’s expected to bounce back in 2011.
Based in Los Angeles, publicly traded Grubb & Ellis (NYSE: GBE) is one of the country’s — and metro Denver’s — largest commercial real estate brokerage firms.
While there will be leasing activity in the metro area this year, commercial property vacancy rates will likely stay flat because most tenants will move laterally to take advantage of attractive lease rates and landlord concessions, according to the G&E report.
The Denver-area real estate investment market is expected to remain generally flat in 2010, but buyers with cash are expected to purchase lower-priced properties, including distressed assets.
Metro Denver ranked 10th on G&E’s “Investment Opportunity Monitor” for 2010-2014, based on property, economic and demographic variables. Only Texas cities such as Houston and Austin; California markets like Los Angeles, San Francisco, San Diego and Orange County; Washington, D.C.; Portland, Ore.; and Raleigh-Durham, N.C., are expected to do better than the Denver area when it comes to commercial real estate investment.
“Leasing activity will certainly increase, and there will continue to be a large quantity of properties attractively priced for buyers with cash,” Mark Ballenger, executive vice president and managing director of G&E’s Denver operation, said in a statement.
Bob Back, G&E’s chief economist, thinks that while the national economy has started a “slow and cautious” recovery, the labor market won’t turn around until the second half of this year, since it often lags the broader economy.
“Because commercial real estate lags the labor market, [the national commercial real estate market] still has a ways to go before reaching its own low point,” Bach said in a statement.
Other high points of G&E’s Denver forecast:
- Most commercial properties sold this year will be “come in the form of note sales and other non-recorded transactions.”
- Highly leveraged, lender-held buildings will get new owners, removing a major impediment to the recovery of the real estate investment market.
- Many larger office-building tenants will try to capitalize on lower rents and concessions offered by landlords at Class A and B properties, causing Class C properties to struggle to keep tenants.
- Metro Denver’s industrial real estate market is expected to see “positive growth and activity in 2010” when it comes to leasing, with renewable energy companies likely being responsible for most of that activity.
- Retail leasing in the metro area could see a moderate increase in activity this year, with grocery-anchored shopping centers as well as urban sites staying “fairly stable.” Most of that activity will come from educational and professional service businesses, taking advantage of lower asking rents.
- Job growth will be key to improvement in the local apartment market. (Even though apartment properties include residences, they are considered commercial real estate because they’re largely owned by companies or investors who don’t live there.)
More Criteria for Finding Office Space – Good Karma
You can measure the success of a start-up in square footage.
Just ask Xobni.
A few weeks ago, Xobni moved into Twitter’s old offices in the South of Market area of San Francisco. With 30 employees, it could no longer squeeze into the offices that it first occupied with four people in 2007.
There are still some stray birds painted on the walls, but the expansive views and wide-open spaces now belong to Xobni.
I dropped by the other day as co-founders Matt Brezina and Adam Smith reminisced about the string of luck and smarts that has helped them move on up in the world.
Office No. 1 was Smith’s MIT dorm room in 2006. Smith persuaded Brezina to quit grad school and move into the 12-by-12-foot space to work on Xobni. Office No. 2 was a rented apartment near Harvard Square during the early days of Y Combinator. When the lease ran out there, the pair temporarily moved into the apartment of a fellow Y Combinator start-up founder and now Xobni employee, Bryan Kennedy.
Realizing they needed to head to Silicon Valley to make a real go of Xobni, they drove to California and ended up in Office No. 4, a small apartment in a San Francisco high-rise that became known as the “Y Scraper” for housing so many Y Combinator start-ups, including Justin.tv. That’s where I met them (and was introduced to one of Smith’s culinary specialties:microwaved chewy Chips Ahoy cookies).
Soon after raising $4 million, they moved into their first true office, No. 5, one block from Union Square. Like now, fellow Y Combinator company Scribd took up residence in the same building.
In 2009, Xobni got some major media attention, picked up a lot of new users, raised more money and even came out with a premium product that people are actually willing to pay for.
Four million downloads later, Xobni is chilling in its new digs, looking to catch some of Twitter’s good karma.
Office Space Alternatives For Entrepreneurs
From Co-Working to Cubicles: Where Are You Working?
Written by Dana Oshiro / January 13, 2010 6:21 PM / 7 Comments
This post is part of our ReadWriteStart channel, which is a resource and guide for first-time entrepreneurs and startups. The channel is sponsored by Microsoft BizSpark. To sign up for BizSpark, click here.
One of the fantastic things about being an entrepreneur is that you can define your own working conditions. From Craigslist’s modest Sunset District apartment headquarters to Twitter’s stylish new digs, startups are getting creative with their work spaces. Below are a few options to consider in choosing your space.
Virtual: As covered in an earlier post, ReadWriteWeb runs a totally virtual office. Using a combination of Basecamp, Google Docs and Skype, the team manages to coordinate articles and interviews from more than five locations across the globe.
Traveling Space: We recently came across iStopOver – a service that allows you to rent space for your team while on the go. If you’re together at a conference, or you’d just like a change of pace, this service allows you to rent furnished office space on a daily basis.
Co-working: Rather than having your staff work in isolation, you can rent them desk space at one or a number of distributed co-working facilities. Sites like San Francisco’s Citizen Space and The Hat Factory allow nomadic tech workers to share ideas and solutions in a friendly environment. Many co-working spaces offer a daily drop in rate as well as the option for monthly membership. To find a space in your community, check out the co-working map on the Co-working community blog.
Lease and Rent: Sites like LoopNet and Rofo specialize in finding commercial space. A number of sites will allow you to take on space for a short-term lease with the idea that you may need to scale up your team in a short period of time.
Twitter’s Office Space – Home Tweet Home
Interior designer feathers Twitter’s nest
Wednesday, January 13, 2010
Who says tech whiz kids don’t have a design sensibility? When Twitter recently moved into its new offices in downtown San Francisco, many of the bright young things who work there were concerned about the decor on their walls. Specifically, they were insistent that a series of cloud decals that had adorned their previous work space – a throwback to an early Twitter logo – should accompany them to their new work space.
Fortunately for them, Sara Morishige Williams, the designer assigned to give the new offices a makeover, and the wife of Twitter co-founder Evan Williams, was more than aware of what was called for, having lived and breathed the Twitter culture since the company started in 2007.
Before anything, however, she had to find offices to accommodate the rapidly expanding team, whose number currently stands at 110 but, given the success of the company’s microblogging service, is likely to grow. Morishige Williams, who has worked on residential interiors but was new to a workplace project, toured a number of spaces that were up for sublease, many of them empty.
Eventually she found sixth-floor offices that had previously been occupied by social-networking site Bebo. A key attraction was that the space had been built out by Brereton Architects a few years ago, which meant Morishige Williams could concentrate on the interiors, as the unit didn’t require any structural changes.
Morishige Williams’ priorities when considering how to give the new space the Twitter imprint revolved around three key issues: familiarity, levity and sustainability.
“Twitter is under an intense spotlight despite being a very young company, but it stays grounded with a culture of humility, empathy and compassion,” she says. “People there care about sustainability and are involved in global issues, so I was careful to take this into consideration with my design and material choices.”
Reception desk re-clad
Morishige Williams says she chose furniture and fittings that would endure, be minimalist and, wherever possible, reuse materials. She started in the vast lobby area by deciding to retain the sweeping reception desk, but give it a new look by having its base re-clad with reclaimed barn wood. She collaborated on this, and several other elements in the work space, with Mark Rogero at Oakland’s Concreteworks. The large Twitter sign on one of the walls in the lobby is made from the same reclaimed barn wood and hot-rolled steel and was fabricated by Lundberg Design.
The lobby also introduces the playful element Morishige Williams was striving for throughout the space. A pair of neon-green deer take pride of place in a corner bay whose giant windows provide stunning views of Yerba Buena Gardens. The animals were garden ornaments when Morishige Williams found them, and somewhat the worse for wear. She repaired and painted them – fixing a pair of real antlers onto one – and the duo accompanied the Twitter team from their former offices. The reception area also features a wall of tree-branch hooks made by John Robohm at Live Wire Farm.
In the open-plan offices themselves, the immediate impression is of natural light and space – neither of which one associates with your typical urban work space. Close inspection reveals a plethora of whimsical design touches – almost all of which have been inspired by nature and the company’s own visual branding.
“I wanted the space to be personal, not unlike a home,” says Morishige Williams. “And I wanted to bring the outdoors in.”
Thus, each of the company’s conference rooms has been named after a bird, and an aluminum cutout of the bird’s silhouette – be it a heron, a skylark or a plover – has been placed on the respective doors.
Concreteworks was commissioned to make another important element for the new space: four outsize conference tables. These were crafted in concrete composed of recycled aggregates, including 40 percent fly ash, and their bases were also clad in barn wood. The piece de resistance is the main conference room’s table, the top inlaid with a scattering of Twitter’s signature bird motifs cut out of white opaque acrylic. Each of the meeting rooms is equipped with extra large whiteboards, because, says Morishige Williams, “everybody here is really into whiteboards.”
The avian theme is repeated on the office’s longest wall, for which Morishige Williams designed a sweep of birds created with custom-made decals. The design was based on a photograph Morishige Williams took of a flock of birds when visiting her father-in-law in snowy Nebraska.
Morishige Williams says she was fortunate that the space’s existing carpet, a striped prism pattern on a black background, was nice enough to keep. She matched colors in the carpet for the walls, which were painted in low-VOC paints. The tones range from robin’s-egg blue to icy green. To create contrast, one wall has been painted dark gray.
Focus on comfort
“In the design of Twitter’s space, I wanted community spaces to have elements of a comfortable living room, where people could escape their desks yet continue working,” says Morishige Williams. With this in mind, many areas in the Twitter headquarters have been given over to comfortable seating.
Morishige Williams chose furniture that, while stylish, was also functional and offered value for money. All the meeting-room chairs are recyclable and stackable. The chairs used in the dining area are the Jake model from Room & Board. As well as in-house lunch, Twitter employees are offered regular teatimes. “Google has its TGIF get-togethers – we have tea,” says Morishige Williams.
Many of the sofas were custom-made by San Francisco company Furniture Envy, which will make pieces to order. Close to the DJ booth that the company inherited sits a row of Chiquita stools by Kenneth Cobonpue. With their seats made of natural rattan poles, they are visually striking but surprisingly comfortable.
Time was in short supply for Morishige Williams, both because the move happened quickly and because it coincided with the birth of her first child. One aspect she knew would make a significant impact was lighting, so she tackled that early on, switching out unattractive fixtures in favor of pendants and shades that cast a warm glow. It proved a relatively easy way to make the space more inviting.
But her finishing touch is perhaps the most telling. In order to make the staff feel welcome in the new work environment, Morishige Williams commissioned small Throwboy pillows for each employee, which were placed on their chairs on their first day in the new offices. Embroidered on each are the words “Home Tweet Home.”
“Sara has successfully translated the essential qualities of Twitter,” says Twitter co-founder Biz Stone. “There is a deep acknowledgment of openness in the layout, and crafty nods toward thinking green with the use of reclaimed barn wood and concrete tabletops made of recycled glass. Technology is driven by nature, by people pushing it in clever new directions, and Sara gets that. …
“The space we occupy in San Francisco is where we hope to do our best work. Sara’s instinct and attention to detail helps inspire us to do just that.”
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