The energy sector in Colorado has seen its fair share of ups and downs over the years, but it has always remained a vital part of the economic fabric of Metro Denver. As a key industry that we serve at Column Commercial Partners, we make it a point to stay up to date on the latest news and policies that affect our clients to better understand their real estate needs – and that includes attending industry-specific events.
WESTERN ENERGY ALLIANCE ANNUAL MEETING
Earlier this month, Matt and Melissa from the Column Commercial Partners team had the opportunity to attend the Western Energy Alliance’s annual meeting in Beaver Creek, Colorado. As the voice of the oil and natural gas industry in the West, the Alliance is a recognized leader in federal legislative, regulatory, environmental, public lands and other policy issues, and often serves as a go-to source for Congress regarding these issues.
The big news this year is that the Alliance launched Western Wire, a source for news, commentary and analysis on pro-growth, pro-development polices across the region. The editorial staff at Western Wire has a strong pulse on what’s happening in our backyard, and aims to cover the news and viewpoints frequently overlooked when regulations and legislation are debated in Washington, D.C. and throughout the West.
Whether you’re a part of the energy sector, or simply a conscientious citizen who wants to be more informed, Western Wire provides insight from the heart of the industry and is well worth a read.
DENVER'S ENERGY REAL ESTATE INSIGHTS
While Metro Denver’s energy sector may seem down, it’s far from being out. This industry continues to make up roughly 20 percent of the Downtown Denver office market (and closer to 30 percent if you include vendors to this sector). Over the past few years, many of the larger energy companies have subleased pieces of their spaces to help offset losses in revenue, but there remains only a small handful of these larger subleases on the market.
In 2017, we’ve continued to see significant leasing activity among oil and gas companies of all sizes. Here are a few of the most notable:
- BP America is relocating its Lower 48 regional headquarters to Denver from Houston, strategically positioning the company to further invest in the Rocky Mountain region. Their 150,000-square-foot headquarters in Denver’s Platte Street neighborhood will house 200 employees.
- Encana Corp. re-signed a lease in the Republic Plaza building through 2026. Their new 335,000-square-foot space is smaller than what they had, but can still accommodate their 650 Denver-based employees.
- Noble Energy is reportedly close to signing a lease for a 130,000-square-foot office space downtown, following the company’s announcement of relocating 100 employees out of Denver to Houston and Greeley.
Watching these leases and others in the works, it’s clear that energy companies continue to see Denver and the Rocky Mountain Region as an important strategic location for long-term, sustainable growth. As these companies look to attract and retain top talent, it will be critical for them to locate and design their space with company culture and employee productivity in mind.
As the energy sector in Colorado evolves, we’ll continue to bring you valuable insights as it relates to commercial real estate, so you can make the most informed decisions for your business. In the meantime, if you have any questions about whether or not your company is in the right space for your business goals, or to see if you can achieve cost savings on your real estate, please contact us for a no-cost consultation.
Melissa Krischuk | 402.301.9636 | [email protected]