Two new office buildings in downtown Denver, both completed during the pandemic, announced new leases on Wednesday.
The deals mean a second tenant for Denver’s newest skyscraper. But the other project’s office building, about a third of its size, has actually leased far more square feet.
Block 162 lands a second law firm
First, there’s Block 162, the 30-story, approximately 600,000-square-foot skyscraper at 675 15th St.
Houston-based developer Patrinely Group and partner USAA Real Estate said Wednesday that Dallas-based law firm Haynes and Boone leased 13,125 square feet on the building’s 22nd floor.
The firm is expected to move in the third quarter of 2022. Haynes and Boone’s Denver office, which has a staff of about 25, was established in 2015 and is currently at 1050 17th St.
Doug Wulf and Todd Wheeler of Cushman & Wakefield are marketing the building’s office space under the direction of Dennis Tarro of Patrinely Group. Cheryl Casserly of Transwestern represented the tenant.
Haynes and Boone is the second tenant to be announced for Block 162, which was completed in the second quarter of this year. The first tenant was Denver-based law firm Sherman & Howard, which said in March that it was taking the building’s 23rd and 24th floors — about 60,000 square feet.
Block 162 still has more than 500,000 square feet of available office space. Among the companies that have been scouting the building, according to industry sources, is Palantir, which moved its headquarters to Denver from Silicon Valley last year but lacks a permanent home locally. Palantir didn’t respond to a request for comment Wednesday.
McGregor Square office tenant count increases to eight
McGregor Square, located across the street from Coors Field, consists of three connected structures — one of which is an office building.
The project’s development team announced three new tenants on Wednesday.
Exclusive Resorts, a members-only vacation club, leased 19,000 square feet, McGregor Square CEO Patrick Walsh told BusinessDen.
Data center firm Cologix leased another approximately 11,000 square feet. And The True Life Cos. — which says it “seeks to establish infill housing growth strategies” — leased about 6,100 square feet, Walsh said.
All three firms are based in Denver.
They join office tenants who signed at McGregor Square earlier: cybersecurity firm Red Canary (about 43,000 square feet, per Walsh), law firm Lewis Roca (31,000), T-Mobile (25,000), ad firm CPB (18,000) and Oceanside Capital Advisors (4,000).
Lewis Roca just moved in this week, Walsh said.
Walsh said the building’s 25,000-square-foot fourth floor is still available, as is another 14,000-square-foot chunk, although negotiations are close on the latter and a deal could be official early next year. Jordan Deifik of Bastion Inc. is marketing the property’s office space.
Walsh and Deifik said separately that they think the mixed-use nature of McGregor Square has been attractive to potential tenants. Walsh noted the project incorporates the Rally Hotel.
“That’s great for out-of-town clients and executives,” he said.
Deifik noted the proximity to Union Station and I-25 express lane access, and said components like a food hall appeal to executives who want employees working out of the office.
“As they’re touring, they’re like ‘Our team is going to want to come back here,’” Deifik said.
Deifik also said McGregor Square’s development team, which includes Rockies co-owner Dick Monfort, has “gone above and beyond in terms of creative structures.” One of the building’s mid-sized tenants, for example, signed a two-year lease, which might not appeal to larger institutional landlords.
“It got people in the building,” Deifik said.
But there won’t be massive turnover in the years ahead. Of the remaining tenants, Deifik said, one signed for five years, and the others have seven-to-10-year leases.
Walsh said about 85 percent of McGregor Square’s condominium units have sold. And the project’s retail space is fully leased with the recent addition of Caldéro, a Tex-Mex and new American restaurant from the owner of La Loma and Sierra Restaurant.
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