When searching for the ideal commercial office space to lease in Denver, CO, several key factors must be considered. Understanding these elements will help you make an informed decision that aligns with your business needs and financial goals.
Location and Accessibility
The first aspect to evaluate is the property’s location. Denver’s commercial real estate market offers diverse options, from the bustling Central Business District (CBD) to emerging submarkets like DTC and South Suburban, RiNo (River North Art District), and LoDo (Lower Downtown). Consider proximity to public transportation, major highways, and amenities that matter to your employees and clients.
Space Configuration and Tenant Improvements
Assess the layout and condition of potential office spaces. Some properties may offer move-in-ready suites, while others might require tenant improvements (TIs). Negotiate a tenant improvement allowance if significant modifications are needed to customize the space for your business. An evaluation with an independent professional space planner will provide accurate costs to determine if the improvement allowance will cover your costs.
Lease Structure and Terms
Understanding the lease structure is crucial. In addition to the base rent, multiple adjustments need to be made to compare the total cost of each option.
Pay close attention to the lease term, renewal options, accuracy of stated operating expenses, tenant improvements, and any rent escalations. A longer lease term may provide more stability but less flexibility for growth or downsizing. Expansion and contraction options may be negotiable and provide long-term protection as needs change.
Building Class and Amenities
Office buildings are typically categorized into Class A, B, or C. Class A properties offer premium finishes, state-of-the-art systems, and extensive amenities. While these command higher rents, they can also enhance your company’s image and employee satisfaction.
Common amenities to look for include:
- On-site parking or validated parking arrangements
- Conference facilities
- Fitness centers, showers, and lockers
- Outdoor spaces or roof decks
- Modern heating and air conditioning
- Sufficient elevator speeds
- Food service options
Operating Expenses and Additional Costs
Beyond the base rent, understand all potential costs associated with leasing the space. This may include:
- Common Area Maintenance (CAM) charges
- Utilities – percentage of costs or separately metered
- Janitorial services – number of days per week
- Property taxes – significant difference per jurisdiction
- Insurance – coverage required by owner and tenant
Request historical operating expense data to gauge future costs accurately.
Technological Infrastructure
In today’s digital age, robust technological infrastructure is essential. Inquire about:
- High-speed internet connectivity
- Backup power systems
- Smart building features
- Security systems
Sustainability and Energy Efficiency
Denver has a strong focus on sustainability. Look for LEED-certified buildings or those with energy-efficient systems, which can lead to lower operating costs and align with corporate sustainability goals.
Future Growth Considerations
Consider your company’s growth trajectory when selecting a space. Look for properties that offer expansion rights and the ability to lease additional space as your business grows. The larger the property, the more likely they will have sufficient space to handle your growth needs. Alternatively, subleasing options with favorable terms offer flexibility as do negotiated contraction options.
Professional Representation
Engaging a tenant representative broker can be invaluable in navigating Denver’s commercial real estate market. They can help you understand market conditions, negotiate favorable terms, and avoid potential pitfalls in the leasing process.
By carefully evaluating these factors, you’ll be well-equipped to find a commercial office space in Denver that meets your business needs and positions you for success. Remember to seek a tenant representative to thoroughly review all lease documents and legal counsel before signing any agreements.
To request a free lease review from Corporate Real Estate Advisors send an email with your company name and contact to info@tenantsagent.com.
