NAIOP Colorado

CREW Women of Influence Award Nominations now Open

Attention Developers, Brokers & Owners: Now is your chance to recognize an outstanding woman in the field of commercial real estate.  CREW Denver's 9th Annual Women of Influence Awards Luncheon will be held October 23rd and CREW is seeking nominations for individuals, teams and companies who have made a difference in our industry.  This is an awards lunch for industry professionals and not just CREW Members!  Award categories are: Women of Influence Award, Team Award - The Women Who Make the Deal, Champion Award and Rising Star Award.  Nominations are open for a limited time!!!  Please submit your nominations at www.crewdenver.org/woi/nomination.htm.

COMMERCIAL REAL ESTATE MARKET FORECASTED

July 8, 2008

Submitted by:  Todd Grover, Sr. V. Pres. Compass Bank

Today, NAIOP Colorado hosted a panel of top Denver brokers to forecast the market for commercial real estate.   

First, Frank Kelly, Office Leasing Broker at CB Richard Ellis, commented that 16 consecutive quarters of positive absorption have reduced vacancy rates on office buildings to 12.9% in Metro Denver.  These lower vacancy rates have driven the average lease rate up to $20.93.  The hottest of the office submarkets is downtown with a vacancy of only 11.2%.   Although there are major commercial projects planned, Kelly predicts that an increase in interest and expense rates, combined with higher construction costs, will slow construction.  He further predicts that rental rates will continue to increase, but taper to levels only slightly above inflation.

Bill Thompson and Jim Bolt, industrial leasing brokers at CB Richard Ellis addressed the future of the industrial market.  The duo believes that vacancy is likely to increase, despite construction of new product being off of the record levels experienced in 2006 and 2007.  Zero to moderate rent growth is expected from the sector.  Construction costs in this sector also continue to increase, which will lead to lower new construction starts as well.  Bright areas include the energy and renewable energy sectors; both industries continue to absorb space in Denver.  Other trends that Thompson and Bolt see continuing are a shift from core assets to value added assets and a tendency for developers to focus on in-fill industrial sites for non-industrial uses. 

David Fried, Retail Broker for Fuller Real Estate, predicts that “times will get tougher before they get better”.  The added expense of gas is reducing discretionary income of the consumer and is hurting retailers.  This, in combination with difficult credit markets, will slow all but the best located retail development.  Rents will flatten and possibly decline.  Projects noted for likely success are The Streets at Southglenn, Cornerstar, and River Point and any retail located in the Colorado Blvd/Cherry Creek area.  Conversely, projects in the northeast part of Denver are predicted to struggle.

NAIOP COLORADO TEAM OFF TO A GREAT START!

Submitted by Morgan Landers, Brownfield Partners, LLC

This year, the NAIOP Colorado Developing Leaders Committee has taken the lead in organizing a NAIOP Colorado team to participate in the 17th Annual Brokers Benefiting Kids event on August 23, 2008. Industry professionals from all over the Denver Metro area gather to participate in this crazy field day and this year proves to be even more competitive than the last.

This event is a great way to network with not only other NAIOP Colorado members, but other industry professionals as well. The NAIOP Colorado DL committee is inviting all NAIOP Colorado member companies to participate on the team. The team participation fee is only $250 per company and you can bring as many people from your company as you like.  Special recognition will be given to each company participating on the NAIOP team.

For more information or to participate on the NAIOP team, click Here (link to www.bbkdenver.com). Payments can be made by mailing a check or by credit card online. Be sure to list NAIOP Colorado as your team name.  If you have questions, please contact Morgan Landers (link to morganr.landers@gmail.com).

COME SUPPORT DENVER KIDS AND NAIOP DURING THIS AMAZING FUN-FILLED EVENT!!!

McWhinney Named in Top 50 Workplace List

McWhinney has been named #11 of the 50 Best Small & Medium Companies to Work for in America. The list was announced today before an audience of more than 15,000 at the Society for Human Resource Management's (SHRM) 60th Annual Conference & Exposition in Chicago. In 2007, McWhinney ranked #13 of the top 25 small companies in America.

This annual list, now in its fifth year, ranks the top 25 small and top 25 medium-sized companies in America that use smart people management strategies to develop successful organizations with highly productive and satisfied workforces. The organizations, ranging in size from 50 to 999 employees, were announced by SHRM and selected and ranked by the Great Place to Work® Institute (GPTW). The results were based on a randomly distributed employee opinion survey. Each company evaluated was given a score based on employees' responses to a detailed questionnaire about the organizations' workplace cultures.

McWhinney, headquartered in Loveland, Colorado, is a team of talented people who are passionate about creating great places for people. For over fifteen years, the company has developed innovative and sustainable master-planned communities and vertical commercial and mixed use projects.

"From the humble beginnings of being a strawberry stand owner with my brothers, to now having McWhinney stand for over 75 incredible associates working towards making the world a better place, it is with much pride that we accept the honor of being named the 11th greatest place to work in America," said Chad McWhinney, Co-Founder and CEO – McWhinney.

"This award is a tribute to the dedication and innovation of all the associates who work at McWhinney who have succeeded even in the face of tough economic times," said Troy McWhinney, Co-Founder & Principal, McWhinney. "Each of our associates carries the torch of our culture in their commitment to continuous improvement, fabled service, and excellence."

Sustainable Development: The Economics (Part I) Explored in NAIOP Colorado's Green Series

By: Ryan Chamberlain, FirsTier Bank

The second segment of NAIOP Colorado’s six-part monthly Green Series was held on June 18th in the Wells Fargo Center located in Downtown Denver.  The featured keynote speaker for this segment was Alan Whitson of Corporate Realty Design Management Institute.

“The Economics – Part I: Cost, Benefit & Value” was the topic for segment two.  Mr. Whitson discussed the various components of how to construct and/or retro-fit buildings to become sustainable.  Subject matter included lighting, thermal efficiency, HVAC systems and water management.  These “best practices” were utilized in real world scenarios to show how sustainability is achievable and how to increase your ROI.  Please click here to view Mr. Whitson’s power point presentation.

The third segment of the series titled “The Economics – Part II: The Market” is scheduled for Wednesday, July 16th will feature T. Armory Host from Peak Solar, Matt Stokes from Continuum and Tim Swan from CBRE.  Topics will include economic framework, market demand, pro forma, building valuation, green leases and investing.  Please click here for the Green Series programming information or to register for the next event.

The racers were "off" at the Annual "Inverness 500" Golf Tournament

Under sunny skies and a well groomed “track”, the annual “Inverness 500 – Need for Speed” was held, with a new speed record of five hours, five minutes etched into the record books.  With few “cautions” and no rain delays, the field recorded an impressive split time of two hours, three minutes for nine holes!

The starting grid was full with 132 racers vying for the ultimate prize – a jug of ice cold milk. Mark Biagiotti’s SDA team, running in the red # 28 carts bested the field with a combined shamble score of 128, or 12 under par.  Coming in just a “car length” behind was the Key Bank team in the blue # 86 carts led by Lane Hamilton, who with a combined score of 129 bested the Johnson Capital group entry led by Charlie Babb in the black # 3 carts. The Key Bank team edged the Johnson Capital team, who had the same “time” of 129, by the front wheel of their golf cart  - the thinnest of margins!

Team SDA celebrated with the ceremonial chugging of the milk – a Need for Speed tradition. While Team SDA basked in the “winner’s circle”, the real winner was the National PAC, which was the recipient of more than $2,700 in proceeds from the sales of “space tires” (mulligans) and “extra gas” (Tiger drive sales).  Hats off to a dedicated team of “track volunteers”, who manned the pit crew and pace carts, to make the afternoon safe and enjoyable for all who participated.

Finally, a big thank you to the Developing Leaders, led by Monique Lowe, who coordinated the involvement of several DL’s that assisted in making the afternoon a tremendous success. 

The goal for next years “race” is a sub five hour pace.  The “track” and the safety and pace crews will be ready!

A Message from John Ellis, 2008 NAIOP Colorado President

As the year approaches the half way mark, now is a perfect time to pause and reflect on 2008 and the successes and opportunities NAIOP Colorado enjoyed.

As one of over 55 Chapters internationally, and well over 16,000 members, NAIOP remains a leader in the Commercial Real Estate Industry.  Our mission on both the broad scope, as well as locally, remains to serve Developers, Owners and Professionals involved in Commercial, Industrial and Mixed Use Real Estate.  We remain committed to our industry by supporting diversity, providing educational opportunities and advocating for sensible legislation that benefits the communities where we work and live.

Locally our Chapter takes pride in being the “Voice of Commercial Real Estate”.  We are often referred to as the three legged stool of Networking, Education and Legislation.  Our existing structure serves these three legs well.

The Colorado Chapter has seen fantastic growth in the last year.  Led by our Membership Chair, Craig Poulter, and his committee, we currently have over 810 members which ranks us as the 5th largest chapter nationwide.  We are especially proud of the fact that 22% (180+) of our Membership is made up of the under 35 Developing Leaders Group.  This segment of our Membership has shown its own independent energy by creating, within our framework, networking opportunities, educational forums and becoming involved legislatively.  The Chapter is especially proud of the first year of the Mentor/ Mentee Program and its success.  Our entire Developing Leaders (DL) Program was recognized as the Most Outstanding at the NAIOP Leadership Retreat held in Washington, D.C in February.

Transformation of a Denver Icon - Union Station Redevelopment Update

by Cyd Petre, CoBiz Financial

Members and guests at NAIOP’s June 10th breakfast meeting, held at the Marriott City Center, were provided rare insight into the inner-workings of the Public/Private partnership to redevelop Denver’s Union Station and the surrounding area, through a panel of presenters introduced by Bob Blodgett of R.S. Wells LLC.

The panel included Bill Sirois, Manager of Transit Oriented Development for RTD; Ellen Ittelson with the City and County of Denver Planning Department; and Frank Cannon, the Development Director for Continuum Partners, representing Union Station Neighborhood Company, a joint venture between Continuum and East/West Partners, and the “Private” portion of the public/private partnershipf.

NAIOP Colorado members - we are officially on LinkedIn!

What is LinkedIn?

LinkedIn is an online network of more than 20 million experienced professionals from around the world, representing 150 industries.

When you join, you create a profile that summarizes your professional accomplishments. Your profile helps you find and be found by former colleagues, clients, and partners. You can add more connections by inviting trusted contacts to join LinkedIn and connect to you.

For those that already have LinkedIn  profiles you can search for our network by typing NAIOP Colorado in the search area. If you want to set up a LinkedIn profile you can follow this link and do so: https://www.linkedin.com/secure/register?trk=hb_join

We will be sending out an invitation to join the NAIOP Colorado group in the coming month if we do not see you in the network.

 

University of Denver wins 6th Annual Rocky Mountain Real Estate Challenge

by Jonathan Brahmer

In a matchup culminating months of hard work, two student finalist teams competed in the 6th Annual NAIOP Rocky Mountain Real Estate Challenge on May 7, 2008 at the Marriott City Center Downtown. In front of a crowd of over 600 real estate professionals, government officials, educators, students, and friends, the six-student team from the University of Colorado, Leeds School of Business and the six-student team from the University of Denver, Franklin L. Burns School of Real Estate and Construction Management each presented their vision for the development of “Brookfield Plaza at Tremont”—consisting of Blocks 173, 196, and 197 located at 15th and Tremont in Downtown Denver.

In a full day of competition, which included presentations and a question and answer period with a panel of judges consisting of real estate experts and the evening’s final presentations to the entire audience, the best and brightest from both schools presented their plans. At the evening’s main event, Denver Mayor John Hickenlooper gave the opening speech, commending Brookfield Properties and NAIOP for their commitment to higher education and the learning process, and praising the students for their hard work as they are to become the future leaders of our community. Also in attendance to introduce the student teams and announce the winner was long-time supporter of the Challenge, and President of the Metro Denver Chamber of Commerce, Joe Blake. Master of Ceremonies for the event was the NAIOP Challenge Committee Chair, Kathy Thurston of CoBiz Financial.

Energy Policy Released by NAIOP; Urges Commercial Real Estate Community to Increase Energy Efficiency

Statement on Energy Efficiency in Commercial Development Announced by NAIOP
Commercial real estate organization commits to helping reduce energy usage in commercial development

Washington, D.C. — The National Association of Industrial and Office Properties (NAIOP), the leading trade association for developers, owners, investors and other professionals in industrial, office and mixed-use commercial real estate, today announced an official association policy on energy. 

In a proactive approach to engage its members and the commercial development industry in advancing an economically prosperous and sustainable built environment, NAIOP commits to:

· Encourage the real estate development industry to employ every technically feasible, cost-effective, sustainable strategy available to increase energy efficiency of new and existing buildings, and to employ cleaner, low carbon energy alternatives (including onsite energy), wherever possible.
· Advance public policies that accelerate ongoing energy efficiency and sustainability gains; support cleaner (including onsite) energy alternatives; and promote, wherever practical, less carbon intensive transportation options to and from buildings.
· Engage in educational programs, seminars and conferences to help employ best practices for energy efficient development.

The entire statement can be found at:  http://www.naiop.org/greenresource/energypolicy.cfm.

 

Developing Leaders Tour Gateway Station in Golden

by Edmond Watters, Johnson Capital

On Thursday May 15^th, NAIOP Colorado’s Developing Leaders (DL) Group participated in its inaugural property tour.  After careful consideration of several projects by the DL committee, NexCore Group’s exciting Gateway Station project in Golden was chosen.  There was good attendance by the DL’s, and their overwhelmingly positive feedback has deemed the event a success.  The reasons for choosing this project & developer are important, and made for a great first property tour. 

Governor Ritter Helps NAIOP Colorado Kickoff Green Series

by Abe Laydon, Fairfield and Woods, P.C.

The first segment of NAIOP Colorado’s six-part monthly Green Series was held on May 21^st in downtown Denver.  Colorado Governor Bill Ritter provided an introduction for the educational series, which will examine the entire life cycle of sustainable development.

“The Green Wave…Are You Riding It?” was the topic for the first series meeting and included discussion on topics such as: Colorado’s political stance as it relates to sustainable development; impacts on the environment; an introduction to LEED; and an overview of the costs and benefits of green building.

Featured speakers were Rocky Scott of McWhinney Enterprises; Renny Fagan, the State Director for Senator Ken Salazar’s Office; Tom Plant from the Governor’s Energy Office; Tom Hootman, Director of Sustainability at RNL Design and President of the Colorado U.S. Green Building Council; and Melissa Knott, Director of Sustainability, Forest City Stapleton.  To view the speaker presentations, Click Here.

The next segment of the series “The Economics – Part I: Cost, Benefit & Value” is scheduled for Wednesday, June 18^th and will feature Alan Whitson of Corporate Realty Design Management.  Click Here for Green Series programming information or to register.

Colorado Developing Leaders Launch Webpage

by Edmond Watters, Johnson Capital

The Developing Leaders Committee is proud to launch the official Developing Leaders (DL) web page.  The web page is a micro site of the NAIOP Colorado Chapter’s web site, and contains information specifically tailored to the DL Program.  All DL members are encouraged to visit the site frequently to find out information about upcoming events.  This will be the best way to stay connected with what’s going on with the DL Program.  Click Here to visit the DL web page and make sure you don’t miss out on anything!

The left hand side of the web page is identical to the main NAIOP Colorado web site.  The right hand side contains information that is specific to the DL’s, including upcoming events, a comprehensive calendar of events, information on the mentoring program, and links to the DL weblog and the NAIOP National DL web page.  The center of the page will provide general information about the DL activities including education, community outreach, and networking programs, as well as articles on recent events.

A unique feature of the DL web page is the DL Member Spotlight – an in depth profile on local Chapter DL members that will be updated monthly.  This is an excellent business opportunity for DL members to get exposure to the entire group of Developing Leaders.  Our current DL Member Spotlight features Deidra Gonzalez, Co-Chair of the local DL Program.  Click Here to learn more about what Deidra is involved in.  If you are a DL member and would like to submit your personal profile, Click Here.

The DL Committee invites any feedback you may have on the web page.  You will find a Suggestions & Comments link on the DL web page.

Two Recent Green Building Studies confirm LEED and ENERGY STAR Buildings Deliver High Performance and High Value

By Tom Hootman, RNL / USGBC Colorado

Several weeks ago, the U.S. Green Building Council put out a press release announcing the release of two new studies on LEED and ENERGY STAR buildings. The two studies demonstrate that LEED and ENERGY STAR buildings outperform conventional buildings in energy savings, occupancy rates, sales price and rental rates.

The National Buildings Institute (NBI) study compares the energy use of LEED and ENERGY STAR buildings to conventional buildings and found that on average LEED buildings generated energy savings of 25 to 30% compared to conventional buildings, with LEED Gold and Platinum buildings approaching energy savings of 50%. The complete NBI study can be found at: https://www.usgbc.org/ShowFile.aspx?DocumentID=3930

The CoStar study compares rental rates, occupancy rates and sales price of LEED and ENERGY STAR buildings to conventional buildings and found that LEED buildings generate rent premiums of $11.33 per square foot over conventional buildings with a 4.1% higher occupancy rates. ENERGY STAR buildings also generated value with rent premiums at $2.40 per square foot and occupancy rates 3.6% higher than conventional buildings. LEED buildings are selling for $171 per square foot MORE than conventional buildings and ENERGY Star buildings are selling for an additional $61 per square foot over conventional buildings. The complete CoStar study can be found at: http://www.costar.com/partners/costar-green-study.pdf

 

NAIOP has 11 year history of working with Boys and Girls Club of Metro Denver

by Mark Cheeks, Ware Malcomb

NAIOP is coming upon its 11th year of working with the Boys & Girls Clubs of Metro Denver (BGCMD) by preparing the Gates Camp in the Indian Peaks wilderness area for its Summer Campers.  It has been a rewarding contribution and a way for NAIOP to give back to our community.

The connection to BGCMD started with an idea 12 years ago by a small group of people on the NAIOP board:  Jim Mulligan, Bob Moody, Matt Smith, John Shaw and Tracy Wilkes.  They were looking for way to get NAIOP more involved with the community.  Wilkes was at a retreat with the Washington Chapter of NAIOP and heard that Seattle was reaching out to their community by getting involved with the Boys & Girls Clubs there.

Upon returning to Denver the BGCMD was contacted and John Matthews, the Camp Director, had some great ideas of how NAIOP could help.  There were originally two trips planned a year.  The larger capital projects were worked on in the fall by Contractors volunteering their time and donating their machinery and construction materials.  The large projects included such things as winterizing the cabins, window replacement and insulation so that they could be used in the wintertime, a heavy-timbered fence, a basketball court, and most recently the completion of a visitor’s cabin a few years back.  The other trip took place just before summer, volunteers would go up for the final clean of the camp. 

In more recent years, Steve Johnson and Greg Kelly have respectively spear-headed the efforts to get the volunteers excited about going up for this worthy cause.  The efforts are now being led by Mark Cheeks.  Cheeks interviewed Kelly and Wilkes to get some history of NAIOP’S connection to BGCMD.  “The idea was once the larger capital projects were completed up at Indian Peaks, that NAIOP could transition the idea into the Boys & Girls Clubs actually in Denver,” said Wilkes.  “We have done some great things, but there’s still more that could be done.”  That goal has not yet been reached.

Plans to reach deeper into this and other worthy organizations are in the works as we speak.  The Community Relations Committee for NAIOP continues to work on ways to broaden their scope of community involvement.  On June 7, 2008, NAIOP will continue the tradition that was started eleven years ago.  We will work toward reaching the goals set by a small group of concerned leaders wanting to give back to our community.  As professionals in this great city that we work in, it is a goal worthy of our attention.  If you would like to sign up to help out on June 7^th, click here for more information.  If you are not able to help us on June 7^th, you can still contribute by sending a kid to camp this summer, click here and read the 2^nd page for more information on how to do this.

 

NAIOP Colorado partners with State Universities to match Interns with Companies

Looking for help on a short term or urgent project?  Do you need a bright, energetic employee over the summer to help work on your next, great, breakthrough project?

The University of Colorado’s Real Estate Center, Everitt Real Estate Center and The Franklin L. Burns School of Construction Management all have summer interns available for hire!  Each school is assisting its students in placing interns for paid positions over the upcoming summer break.  Both MBA students as well as Undergraduate students are available. 

Don’t miss this opportunity to capture bright talent for your team!

For information on student’s available and qualifications please contact each school directly:

Suzanne Dastin
University of Denver
303-871-3798 or sdastin@du.edu

Katie Mrazik
University of Colorado
303-492-3643 or katie.mrazik@cu.edu

Ron Surace
Colorado State University
970-491-2192 or ron.surace@business.colostate.edu

 

NAIOP 11th Annual Boys & Girls Clubs' Spring Work Day

Each year, NAIOP supports the Boys and Girls Clubs of Denver by spending a day prepping the Gates Camp.  Gates Camp is a beautiful 80-acre camp in the Indian Peaks Wilderness area that was developed for and continues to provide a wilderness experience for inner-city children for a minimal fee.
 
Saturday, June 7, 2008 will be the eleventh annual Spring Work Day for NAIOP.  It will be a great day.  The volunteers meet at the Broomfield Park and Ride for a light breakfast and ride the chartered bus up to Indian Peaks.  About ten of the camp counselors volunteer their time as well.  Tyler Edmonson is the camp’s director and is eager to have us come up because we are the final push needed to get the camp ready for the campers coming this summer.

We do all the prep work to get the camp ready for opening the following week, so the Boys and Girls Clubs really count on us to lend some elbow grease to the projects.  There are always a variety of jobs to choose from, last years there were things such as cleaning up the cabins, putting up the large outdoor tents, clearing out cut or fallen branches, digging post holes and setting posts,  staining a cabin and re-skinning the 40-foot diameter tee pee.

The camp depends on this group of volunteers each year.  The one day of work that the volunteers give the camp is like having 15 people spend a 40-hour week on the multiple projects.  While the work is the primary focus, other added bonuses are: networking in an unconventional setting up in the mountains, enjoying a beautiful day, the bus ride back and forth is a gorgeous ride and the food and the drinks taste that much better after a hard day’s work.

This year we will be experimenting with an abbreviated version of the day; leaving at 7:30 am and returning to Denver by 2:30 pm.  The more hands there are, the more we can get done for them.  It will be a rewarding day as usual and it just makes you feel good to know you are helping to make the experience better for the 600 campers that will stay there throughout the summer.  To sign up, click here for detail and registration information.

If you are unable to join us to work at the camp on June 7^th, but would still like to help the Gates Camp, you can do so by sponsoring a camper for one week.  For more information on how to do this, click here and see the 2nd page of the sign-up form.  I look forward to seeing all the volunteers this year.  As the camp cheer goes: Heepwah!

Mark Cheeks
Studio Manager, Interior Architecture & Design
Ware Malcomb

NAIOP hosts April Breakfast meeting entitled "Captain Credit Crunch"

by Todd Grover, Compass Bank

Today, NAIOP hosted a distinguished panel of real estate capital markets experts, who provided insight for both Denver and he nation as a whole.  Participating in the panel were Clay Sublett, Senior Vice President and National Production Manager for KeyBank Real Estate Capital; Wade Judge, Chief Investment Officer for LaSalle Investment Management; and Patrick Devereaux, Senior Director for Cushman & Wakefield of Colorado.   The panel was moderated by Katy Spritzer, also of LaSalle Investment Management.
 
Clay Sublett spoke to the Commercial Mortgage Backed Securities (CMBS) market, noting that the issuance of these securities is expected to be down from a high of $230 billion in 2007 to around $50 billion in 2008.  Sublett’s bank, KeyBank, has not issued a successful application in 2008.  Sublett based this “meltdown” on the overheating of the real estate finance market, excessive financial engineering, sub-prime connotations, fear of recession, and a general downward spiral.  If KeyBank were to issue an application, spreads over the 10-year U.S. Treasury yield would be 5%, up from less than 2% a year ago. 

Wade Judge, representing LaSalle, an institutional purchaser of commercial real estate, commented on the turbulence of the market.  Judge expects his company to purchase fewer assets in 2008.  The firm is under contract to purchase its first asset of the year this month, a multifamily property.  Judge described the purchase as attractive due to attractive financing arranged by its joint venture partner.  The loan for the purchase calls for 30% equity.  Half of the interest on the loan is variable at a rate just under 5% and half is fixed at just over 5%.  Overall, Institutional Investors have more to invest in 2008 than ever before.  However, any real estate purchased will have to meet higher investment hurdles than at the market peak in 2007.

Patrick Devereaux, a Denver Investment Broker, noted a decline in real estate investment activity beginning in the second half of 2007.  Commercial real estate sale listings are currently at 38 for the Denver Metro area, down from 63, a year ago.  Devereaux expects $2.5 billion is transactions in Denver in 2008, down 30% from 2007 levels and 50% from a peak in 2006.  Buyers are seeking assumable debt, occupancies of at least 85%, and core assets.  The highest demand is for properties between $10MM and $35MM.

You can access copies of their presentations by clicking here.  If you attended the breakfast meeting and would like to fill out a brief survey to let us know what you thought of the program, please click here.

University Students Compete in 6th Annual Rocky Mountain Real Estate Challenge

For the sixth year, students from the University of Denver and the University of Colorado will compete against each other to redesign a key property in the Denver area.  This year student teams will prepare and present redevelopment plans for three key half-blocks—Blocks 173, 196, and 197 located at 15th and Tremont in Downtown Denver. The property owner, Brookfield Properties, is the chief sponsor of the project competition to be held on May 7, 2008 at the Marriott City Center Hotel beginning at 5 p.m.

Organized by NAIOP Colorado and sponsored by Brookfield Properties, the 6th Annual Rocky Mountain Real Estate Challenge will include students from DU and students from CU who will make presentations before a panel of judges and hundreds of local real estate professionals.  Oral presentations will include research, financial analysis, and a redevelopment master plan that will provide for buildings, structures, and an effective integration of the sites into the downtown urban core and the Pavilions 16th Street mall, which all border the project competition site. Brookfield Properties, a leading national real-estate investor and developer, along with seven local architectural firms are working closely with the student teams.
 
“The student teams, along with their architectural resources, are hard at work creating development plans for what is sure to be another highly competitive event.” said Jonathan Brahmer, Vice Chair of NAIOP’s Challenge Committee.  “To be able to work on a high-profile, infill redevelopment project of this caliber is a valuable opportunity for students to gain real-world real estate skills; and it is an opportunity for all in attendance at the event to see what could potentially become the future of that part of downtown Denver.”

Master of Ceremonies and Chair of NAIOP’s Challenge Committee, is Kathy Thurston, Sr. VP of CoBiz Financial Real-Estate Markets.  The panel of judges is Guy Arnold, Dividend Capital Total Realty Trust; Tom Bisacquino, NAIOP National; Michelle Brokaw, Fleisher Smyth Brokaw; Amy Harmon, Urban Market Development; Phil Hicks, David Hicks Lambert Brokerage; V. Michael Komppa, Corum Real Estate Group; Jim Lavan, Colorado PERA; Stephanie Lawrence, Granite Properties; Pat McHenry, CB Richard Ellis; Bill Mosher, Trammel Crow Company; Steve Mulhern, Shea Properties; Dan Murphy, Continuum Partners; Jeff Riggs, Q10 | Essex Financial Group; Anne Rosen, Zing! Development Strategies; Larry Stark, National Valuation Consultants, and David Tryba, Tryba Architects.

For more details and registration information, click here.

NAIOP partners with CREW to teach teen girls about careers in commercial real estate

NAIOP is very excited to be a part of CREW Careers, a nationwide program that is in its second year in Denver.  CREW Careers reaches out to teen girls to teach them about the possibilities of a future career in commercial real estate.  The event will take place on March 20th.  To read more about this educational program and to register, click here.

Developing Leaders gain knowlege from industry professionals

Submitted by Edmond Watters, Director, Johnson Capital

The first annual DL Dinner with the Icons took place on Thursday March 13^th, and was a great success.  More than 60 people attended the event, which offered networking opportunities, a presentation on value based leadership by Professor Sam Cassidy of the University of Denver, and of course the chance to meet and learn from industry “icons”.  Attendees participated in round table discussions with the icons and had the opportunity to visit with them further during the networking periods. 

There has been excellent feedback from all participants, and many mentioned how nice it was to get to know the more personal side of the icons.  The icons candidly discussed not only their successes and accomplishments but also their failures, challenges, and fears in a way that made succeeding in the industry seem possible.  There is no doubt the advice and guidance they shared will help shape careers in the years to come.

Those Developing Leaders in attendance came from a variety of real estate fields, and had varying experience with NAIOP.  Daniel Pabon, an Associate at Holland & Hart, joined NAIOP a week ago and thought the event was “a wonderful program and a great introduction to NAIOP”.  According to Dan Metzger, an Assistant Vice President with Lowe Enterprises who initially got involved with NAIOP in 2000, it was “an excellent event.  The featured speaker, Sam Cassidy, brought a very interesting and unique perspective on the qualities of a good leader, and the time we had to pick the Icons’ brains was invaluable”.  To view Professor Cassidy's complete presentation, click here.

The Developing Leaders Committee would like to especially thank John Ellis, Mike Komppa, Paul Luber, Jim Mulligan, Anne Rosen, John Shaw, Kathy Thurston and Tracy Wilkes for participating in the event and sharing their experiences and insight with all of us.

If you attended this DL event and would like to provide your feedback, please click here to take the survey.  Your feedback helps NAIOP Colorado continue to provide valuable and relevant programming.

Colorado’s transforming economy -- a peek into the past and a vision for the future by Ann Sperling

On March 11^th, a panel featuring Tom Clark, VP of Denver Metro Economic Corporation and the Denver Chamber of Commerce, and Don Elliman, Director of the Governor’s Office of Economic Development and Foreign Trade, was moderated by Ann Sperling, Managing Director of Catellus Development Group, a Prologis Company.

 

Tom Clark gave an update on the state of the competitive position of Denver and the local region in the context of the broader national and global markets, as viewed by companies considering relocating or expanding in Colorado. Key features he highlighted included the character of our labor force, our education system, our business and political environment, infrastructure, transportation and quality of life. Tom discussed at length the disconnect between our high level of intellectual capital which attracts companies, but our lack of funding for higher education.  To view Tom’s presentation, click here.

 

The key focus of Don Elliman’s remarks was the status of the Governor’s campaign Promise for Colorado which outlined a focus on key industries and initiatives. Don stressed the Governor’s commitment to a positive business environment in the state. Much dialogue about our emerging leadership in BioScience, Aerospace and Energy ensued. Don remarked that the ConocoPhillips deal for the Storage Technology Campus affirms Colorado’s legitimacy as a locale for the energy industry, including renewable and wind energy concentration. A detailed discussion ensued regarding the challenges Colorado faces relative to the political process and specifically Labor issues.  To read a full copy of Don’s speech, click here.

 

If you attended this breakfast meeting and would like to provide your feedback, please click here to take the survey.  Your feedback helps NAIOP Colorado continue to provide valuable and relevant programming.

NAIOP Colorado partners with ULI Colorado to present Speaker Event Series

On Wednesday, April 2^nd, international expert and senior fellow at the Washington D.C.-based Brookings Institute, Anthony Downs, will speak at the ULI Luncheon on jittery financial markets.  His new ULI book Niagara of Capital: How Global Capital Has Transformed Housing and Real Estate Markets, analyzes the role easy capital played in the collapse of the sub prime market, the credit crunch and stock market decline.  In his book, Mr. Downs further outlines other scenarios threatening the flow of capital into real estate, including a major rise on interest rates; continued sharp declines in the value of the dollar; a dramatic deterioration of the worldwide economy; and a recession in the U.S.  All registrants will receive a free copy of Niagara of Capital.  For registration information and event details, please visit www.ulicolorado.org or call 303.893.1760. 

NAIOP Colorado hosts its 20th Annual Awards of Achievement Luncheon

On February 20th, NAIOP Colorado hosted its 20th annual Awards of Achievement Luncheon at the Denver Center for the Performing Arts.  This signature event honors the leaders of the Colorado commercial real estate industry and NAIOP Colorado members.

The event attracted over 800 attendees to the Donald Seawell Ballroom to see the best of the best awarded for their efforts in their respective fields during 2007.  John Ellis, Vice President, Security Title Guaranty Company and President of NAIOP Colorado spoke of the Chapter’s accomplishments over the past year and set the course for the organization in 2008. 

Special recognition was given to Paul Luber, of Ascent Capital Partners, LLC as Member of the Year, as well as Monique Lowe of Herman Miller, who was named the inaugural Developing Leader of the Year.  Both honorees demonstrated significant contributions to the Chapter and we thank them for their dedication to our organization. 

Mr. Ellis named John F. O’Meara of Inverness Properties, LLC as recipient of the President’s Award for his career accomplishments and impact on Colorado’s real estate community.  NAIOP Colorado wishes the best of luck to John in his new, more relaxing, endeavors and appreciates his impact and contributions to the Colorado real estate community.

Mary Sullivan, Senior Broker with CB Richard Ellis was presented with the Broker Outstanding Achievement Award for her many career successes.  We congratulate Mary on her very successful career and wish her continued successes in the future!

Colorado State Representative Bernie Buescher of HD 55 and Representative David Balmer of HD 39, were both named recipients of the James T. Brubaker Legislative Award for their significant efforts on behalf of the commercial real estate industry at the state legislature.

NAIOP Colorado congratulates all of our 2007 award winners for their successes and wishes them the best of luck in 2008!  Please click here to see a list of all 2007 Awards of Achievement Finalists and Winners.

NAIOP Colorado to be a Corporate Leadership Sponsor for the University of Colorado Real Estate Council's 2008 Annual Conference

Thursday, March 6, 2008
7:30 a.m. to 5:15 p.m. (Including Networking Reception)
Hyatt Regency Denver at Colorado Convention Center

Speakers and Topics to Include:

The Chairman and CEO of Chipotle Restaurants will discuss how Chipotle is incorporating sustainable practices across its business – from the food it serves to the way it designs and builds restaurants ~ Presented by Steve Ells, Chairman and CEO of Chipotle Restaurants

U.S. and Denver Economic and Commercial Real Estate Outlook – Navigating the Turning of the Local and National Cycles ~ Presented by Hessam Nadji, Managing Director Research Services, Marcus & Millichap

Carbon or Certifications – What Really Matters in Land Development? ~ Presented by Jim Heid, Urban Green, San Francisco

Capital Market Crunch – Current Dynamics and Best Investment Strategies for Taking Advantage of Changing Market Conditions

Denver – In a League of its Own – An analysis of key Projects, Initiatives, and Characfateristics that are Increasingly Distinguishing Denver From Other Metros

For more information and to register, click here.

Metro Denver Economic Development Corporation Responds to Economic Impact Study

Tom Clark, Vice President of Metro Denver Economic Development Corporation, congratulated NAIOP Colorado for the Economic Impact Study that was recently completed.  “While the industry’s impact is substantial, it should also be noted that this industry, unlike any other, provides the technology, buildings and oftentimes, the infrastructure necessary for jobs to be created.”  To read a complete copy of the letter from Tom Clark to NAIOP, click here.

NAIOP Colorado Completes Joint Economic Impact Study by John V. Miller

Early in 2007, the NAIOP-Colorado Chapter commissioned the first comprehensive analysis of the economic impact of income-producing property on Colorado’s economy.

NAIOP-Colorado’s intent was to create the first comprehensive, scholarly report detailing Colorado’s commercial real estate sector. It is significant in terms of its scope and substance.  The study encompasses the entire state, creates unique geographic regions and county-by-county breakouts, and shows the direct and indirect economic impact by major property types.

The study is full of useful data – from the general, such as statewide numbers, to the very specific. Interested in the amount of taxes contributed to Colorado state taxing authorities as a result of new construction? It’s in there. Want to know the number of Front Range jobs directly attributable to the commercial real estate sector? That’s in there, too. How about the amount of direct spending on tenant improvements in Mesa County? That information is in the report, as well.

2007 President's Year-End Report by Jim Mulligan, Fairfield and Woods, P.C.

Now that 2007 has come to an end, I want to express my grateful thanks to all of those members who have made 2007 a successful year for NAIOP-Colorado… Much was accomplished and each and all of you should be proud.

Our committee chairs and members are the heart or our chapter's activities, and this year was no exception:

1. The Executive Committee –John Ellis, Marshall Burton, Craig Poulter, Paul Luber, John Miller and Dan Murphy are heroes in my eyes and were instrumental in making 2007 so successful with their monthly pro-active support for our Chapter's agenda.

2. The Program Committee – Under John Ellis' capable lead, this committee broke new records for attendance at the monthly breakfast programs and, with the support of Jim Mellor and Neal Paul as co-chairs, spearheaded an innovative "Ride the Rails" property tour.  Moreover, with the assistance of Joe Dischinger and his LAC water sub-committee members, a very successful "Water Series" was convened.

6th Annual Rocky Mountain Real Estate Challenge Kicks Off the Brookfield Plaza at Tremont Project

2008 Rocky Mountain Real Estate Challenge (RMREC) Committee Chair, Kathy Thurston (CoBiz Financial), introduced this year’s project, Brookfield Plaza at Tremont, at the Kick-Off Event that was held on January 17, 2008.  Attendees included students and faculty from the real estate programs at the University of Colorado and University of Denver, representatives from Brookfield Properties, architect resource companies, RMREC committee members and NAIOP Colorado board members.  The event took place in the former Wolfgang Puck Cafe at the Denver Pavilions, so that the attendees could look out the windows and view the 3 blocks in consideration for this project at the corner of 15^th and Tremont. 

John Ellis (Security Title Guaranty Company), 2008 NAIOP President, presided over the ceremonial coin toss that determined the order in which the schools will present on the day of the Challenge Event on May 7, 2008.  Upon winning the coin toss, the University of Colorado opted to present 2^nd and the University of Denver then made the first drawing in the assigning of architect resources firms.  These firms will support the the student teams as they study the project and formulate their plans for the redevelopment of the Brookfield Plaza at Tremont site.  HDR Architecture, OZ Architecture, RNL Design and Shears Adkins will work with the University of Colorado while 4240 Architecture, DLR Group Newman Cavender and klipp Architects will work with the University of Denver.

Bill Lucas, Vice President of Leasing for Brookfield Properties, addressed the students and encouraged them to be realistic about their financial projections while thinking creatively about how to integrate blocks 173, 196 and 197 at 15^th and Tremont into downtown Denver, while taking into consideration the existing surface and above-ground improvements.  Josh Sirefman, Senior Vice President of Development for Brookfield Properties, also spoke briefly to the attendees about his excitement for the outcome of the project analysis that will be done by the students in the coming months.

Mark your calendar now for May 7^th to see the final Challenge Event presentations by CU and DU.  Watch your mail at the end of February for registration and table sale details. 

 

Denver Children's Home received close to $6000 in Holiday contributions from NAIOP membership

We would like to extend a big thank you to the generous members of NAIOP. This year, the Community Relations Committee chose the Denver Children's Home as the recipient of funds from the NAIOP’s Annual Holiday Reception.

The Denver Children's Home (DCH) treats traumatized, abused and neglected children aged six to eighteen.  Many of the children come from
poor families who cannot even afford treatment.  As you can imagine, the holidays are an especially tough time of year for these children,
 as many are not able to go home to be with their families.  Some don't have families to go home to, while others simply don't have a
stable home environment.  The staff at DCH try very hard to make the holidays a warm, happy time for the kids, but a limited budget means
that they need our help. 

NAIOP Colorado collected close to $6,000.00 in donations and gifts for DCH.  Members of the Community Relations committee used a portion
of these donations to purchase gifts from the wish lists of every boy and girl that lives at the home.  Rebecca Hea, the Associate
Executive Director of the Denver Children’s Home stated that “the warmth and outreach from our community and volunteers is truly touching
and makes a difference every day.”

A check for the remaining funds will be presented to representatives of DCH at NAIOP’s Annual Awards of Achievement Luncheon on February
20th.  Click here for more information about DCH and how you can become more involved.

Joint university study finds commercial real estate sector accounts for more than ten percent of Colorado economy

Commercial real estate generated $23.4 billion in 2006 economic impact, with almost 70 percent coming from existing properties.

DENVER (January 7, 2008) – Construction, operation and maintenance of commercial real estate properties represents a significant and largely stable portion of Colorado’s economy, accounting for more than ten percent of the state’s total output.

Independent research commissioned by the Colorado chapter of the National Association of Industrial and Office Properties, or NAIOP-Colorado, found that the state’s commercial real estate sector generated $24.3 billion in direct and indirect output in 2006, which was considered a slightly lower than average year due to a downturn in construction.   The study was conducted as a joint project by University of Colorado Real Estate Center and University of Denver Franklin L. Burns School of Real Estate.  Findings were also reviewed by Colorado State University Everitt Real Estate Center.

“Our intent was to apply the highest standards of research methodology toward creating a realistic, comprehensive report specifically focused on commercial real estate construction and existing assets,” said 2007 NAIOP-Colorado President Jim Mulligan. “The findings underscore not only the industry’s significance as one of the state’s largest economic drivers, but also the leadership role that we must continue to provide toward helping Colorado’s growing communities support job growth and continued quality of life.”
 
The study found that almost 70 percent of Colorado’s commercial real estate sector jobs, taxes and other industry-related revenues come from maintaining and operating existing industrial properties, office buildings, hotels and resorts.  

“While new development may adjust with economic conditions and community desires, existing properties are assets that must be continuously maintained and operated, even while seeking tenants,” said Mulligan.  “The commercial real estate that exists today represents a reliable foundation of tax revenues, jobs and local spending.”

NAIOP-Colorado’s report calculated the total economic impact by combining all direct and indirect spending related to construction, operations and maintenance of commercial properties, then applying regional “input and output multipliers” as established by the US Department of Commerce Bureau of Economic Analysis.  The multipliers were not applied to finance or transaction costs.

The report details economic impacts separately for existing properties, tenant improvements, new construction, transactions, refinancing and for the impact of property and sales taxes.  In addition to economic impact data for the entire state, the report also provides breakouts for eight regions and each county.

Highlights from NAIOP-Colorado’s report on the 2006 economic impact of commercial real estate include:
• Direct spending was $12.3 billion, or 5.4% of the Colorado economy
• Total output was $24.3 billion, or 10.5% of the Colorado economy
• 137,832 people were directly employed with average annual wages of $32,177
• Income-producing property construction generated $3.3 billion in direct spending and $6.9 billion in total economic output
• Commercial properties – not including multifamily units – paid $1.18 billion in property taxes alone
• Sales tax on construction materials were $75.2 million, with a total economic impact of $160.7 million
 

The joint research project was headed by Professor Thomas G. Thibodeau, Ph.D. of the University of Colorado Real Estate Center, and Professor Glenn R. Mueller, Ph.D. of the University of Denver Franklin L. Burns School of Real Estate and Construction Management.  Professor Steven Laposa, Ph.D. of Colorado State University Everitt Real Estate Center provided additional review.  Data was provided by McGraw Hill Construction Research & Analytics, and by Real Capital Analytics, Inc.

NAIOP-Colorado is the fifth-largest chapter of the National Association of Industrial and Office Properties (NAIOP), the nation’s leading trade association for developers, owners, investors and other professionals in industrial, office, retail and mixed-use commercial real estate.  The organization provides support, leadership and professional education, diversity programs and advocacy in promoting responsible development and property management.

For more information or call Media contact Steven Silvers, GBSM, (303) 825-6100 x563.

Denver's Changing Lanscape - A Metro Denver Chamber Gold Program

Downtown Denver's landscape is undergoing one of the most significant transformations in years.  On December 12th, the Metro Denver Chamber hosted a Gold Program event where the city's commercial real estate experts discussed trends in expansion, downtown appeal and what is in the works for a city that is on the edge of becoming a 24-hour-a-day destination.  Attendees were able to hear about why downtown future growth opportunities have shifted from Broadway to LoDo and from 19th to 14th streets, and what's new on the horizon, as well as who's buying, who's selling and who's occupying all these properties.  The rule of "location, location, location" still applies, but what are the newest trends?  Click here to see the presentation from the Chamber Gold Program and get the answers shared by the experts.  (The presentation may take a few moments to download due to the size).

The program was moderated by John Rebchook, Real Estate Editor, Rocky Mountain News.  Presenters included:

Douglas Jones, President, The JONES Realty Group, Inc.
Greg Morris, President and CEO, Fuller Real Estate
John M. Shaw, Senior Vice President and General Manager, Opus Northwest LLC

NAIOP Annual Economic Forecast - registration now open

Tuesday, January 8, 2007
Marriott City Center
1701 California Street
7:00 – 9:00 am

Speakers:

Michael Cohen, Research Strategist, Property and Portfolio Research 
Mark Schweitzer, Vice President, Branch Executive and Economist, Denver Branch Federal Reserve Bank of Kansas City 
Larry Harmsen, Managing Director, ProLogis

How will the national economy perform in 2008 and how will that affect the Denver market?  What are the trends for the regional and local economy?  What industries will thrive next year and likely create new jobs that will drive absorption?  How long will the current "credit crisis" last?  How long will the "credit crisis" impact new construction and values of existing assets?
 
Get the answers to these and other questions at the NAIOP Annual Economic Forecast.  Featured speaker Michael Cohen, an independent research strategist, will share insight on the state of the commercial real estate market.  In addition, Mark Schweitzer of the Federal Reserve Bank in Denver, will talk about economic issues on a local level and address the impact on our industry.
 
Thank you to our sponsors:
Gold - CoBiz Financial
Speaker Sponsor - ProLogis
Emerald - Continuum Partners, LLC
Ruby - Alliance Commercial Partners, LLC and Xcel Energy
 
The registration deadline is January 3, 2008.  Click here to register online now.  You can also click here to print a registration form and fax or mail it with your payment to the NAIOP office.

Celebrate the Holidays with NAIOP

With or without snow, the holiday season is coming and NAIOP Colorado invites you to share in the tradition by joining us at The Brown Palace Hotel on December 11th from 5:00 - 7:30 pm for the Annual Holiday Reception.  Click here for details and registration information.

Each year, as a part of NAIOP Colorado's holiday tradition, a portion of your registration fees is donated to a local charity.  This year, the Community Relations Committee has chosen the Denver Children's Home.  Denver Children's Home (DCH) treats traumatized, abused and neglected children aged six to eighteen.  Many of the children come from poor families who cannot even afford treatment.  As you can imagine, the holidays are an especially tough time of year for these children, as many are not able to go home to be with their families.  Some don't have families to go home to, while others simply don't have a stable home environment.  The staff at DCH try very hard to make the holidays a warm, happy time for the kids, but a limited budget means that they need our help.  There is a list on the 2nd page of the registration flyer with some suggested gift items for the kids at DCH.  You can also click here to visit Denver Children's Home website and learn more about their requests for the holidays, as well as their ongoing needs throughout the year.  If you choose to purchase any of the items listed in the flyer or on the website, you can bring these unwrapped gifts to the Holiday Reception at The Brown Palace on December 11th or you can drop your gifts off at the NAIOP office by December 17th for delivery to Denver Children's Home in time for the holidays. 

Join us at The Brown Palace Hotel on December 11th for the Annual Holiday Reception and help make this a very special holiday season for the kids at Denver Children's Home.