LawBank Hosts Commercial Real Estate Panel: “The State of Downtown Denver”
On September 30, 2021, LawBank hosted a lunchtime commercial real estate panel in the state of Downtown Denver. The panel was moderated by Meranda Vieyra, CEO, and Founder of Denver Legal Marketing and NimbusMark. Panelists included Amy Brimah, Rob Fischer, and Eric L. Nesbitt, Esq. Amy has 20 years of experience in the Colorado real estate market and founded Brimah, LLP. Rob has nearly 20 years of experience in commercial real estate and founded Fischer Law Office. Eric has practiced law since 1991 and established The Law Offices of Eric L. Nesbitt and The Nesbitt Commercial Group.
According to the Colorado census, as one of the fastest-growing states in the U.S., Colorado saw a 14.8 percent increase in population between 2010 and 2020. This increase has led to changes in the Downtown Denver landscape. The attorney panel discussed trends and provided insight into commercial real estate in Denver. To begin the discussion, Meranda asked panelists if they believe commercial real estate is a good investment in 2021. Eric suggested that multi-family or industrial is a great place to have clients look. He shared that multi-family is the most resurgent post-pandemic. However, he would not advise clients to look into retail, given the current landscape. Meranda then asked panelists if they believe there will be changes in 2022 and consider Denver an excellent investment place. Amy shared her belief that Colorado real estate —for most classes— will remain strong. Eric warned that because many companies will not return to operating as they did pre-pandemic, it will fundamentally change the office market forever. However, this provides an opportunity for companies that were previously priced out of the Downtown area, as they may take advantage of good deals now.
The panel then transitioned to discuss conversions of commercial to residential and the risks and benefits. Eric stated that one issue developers should be concerned with is oversupply in the coming years. Meranda shared a statistic that 25 percent of U.S. shopping malls are expected to shut down by 2025, but industrial development is expected to increase by 3.6 percent. She invited panelists to share their thoughts on how e-commerce is driving industrial growth in Denver. Amy’s concern is that shopping malls can be difficult to repurpose because they may need to be torn down. Eric discussed the 7,000 square foot warehouse constructed by Amazon in Aurora. The warehouse represented 8 percent of the entire activity in industry leasing last year. Eric foresees this trend continuing, with e-commerce driving the market into the metro area. Rob discussed the direction of medical users, such as therapists and urgent care facilities, moving into vacant retail spaces.
To conclude the discussion, Meranda asked panelists to provide insight and advice around lease restructuring. The panelists agreed that tenants should begin by having an honest conversation with their landlord if they need assistance. Tenants nearing their renewal may also offer an extension in which they pay higher rent on the back end of the lease. Lastly, Rob stated that landlords might see keeping a tenant as a “win-win” because they do not have to go through replacing a tenant or have to pay a broker.
To view upcoming programs hosted by LawBank, visit the events page.
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