The office and hotel tower at 707 17th St. in downtown Denver on Feb. 10, 2025. (Thomas Gounley/BusinessDen)
Colorado’s labor department will pay a blended annual base rent of just under $21 per square foot in its first year as the state agency moves across the street, according to a BusinessDen analysis.
The state agency told BusinessDen last month that it will cut its footprint by a third — from 185,000 to 131,000 square feet — in connection with its move from 621 and 633 17th St. to 707 17th St.
A copy of the state agency’s leases obtained through a public records request shines a light on current lease rates in a challenged Upper Downtown and other details typically closely held by landlords.
The documents show that the Colorado Department of Labor and Employment is initially subleasing a portion of its space in the 42-story building at 707 17th St.
The department agreed to pay Concentrix, a California-based technology firm, $17 a square foot annually for 50,000 square feet across the building’s 24th and 25th floors. That figure increases $1 per year through 2030, when the sublease deal ends. (Concentrix declined to answer questions about its Denver office space.)
The remaining 81,000 square feet that the labor department will occupy later this year was directly leased from the building’s owner, New York-based Brookfield Properties. The agency agreed to pay $23.25 a square foot annually for that space.
Combining the first-year rates on both the sublease and direct lease works out to a blended rate of $20.80 annually to start.
That figure does not include building expenses, currently estimated at $11.11 per square foot annually. The labor department, and other tenants, pay that on top of the base rent. While building expenses technically include property taxes, real estate leased by the state is not taxed — a fact that saves the department another $5 a square foot.
After its sublease deal with Concentrix ends, the labor department will directly lease the same floors from Brookfield, the lease shows.
In aggregate, the labor department will have 131,000 square feet at 707 17th St. through 2040. Base rent will increase slightly in the final decade of the lease, to $25.25 a square foot. Brookfield agreed to contribute $1.18 million for tenant improvements.
Separate teams from JLL represented Brookfield and the labor department. The two brokers representing the state, Patrick Bolick and Kurt Liss, will be paid a commission of $2.63 million — but will credit 45 percent of that back to the state, leaving JLL with $1.44 million, according to the documents. CBRE represented Concentrix.
The office and hotel tower at 707 17th St. in downtown Denver on Feb. 10, 2025. (Thomas Gounley/BusinessDen)
Colorado’s labor department will pay a blended annual base rent of just under $21 per square foot in its first year as the state agency moves across the street, according to a BusinessDen analysis.
The state agency told BusinessDen last month that it will cut its footprint by a third — from 185,000 to 131,000 square feet — in connection with its move from 621 and 633 17th St. to 707 17th St.
A copy of the state agency’s leases obtained through a public records request shines a light on current lease rates in a challenged Upper Downtown and other details typically closely held by landlords.
The documents show that the Colorado Department of Labor and Employment is initially subleasing a portion of its space in the 42-story building at 707 17th St.
The department agreed to pay Concentrix, a California-based technology firm, $17 a square foot annually for 50,000 square feet across the building’s 24th and 25th floors. That figure increases $1 per year through 2030, when the sublease deal ends. (Concentrix declined to answer questions about its Denver office space.)
The remaining 81,000 square feet that the labor department will occupy later this year was directly leased from the building’s owner, New York-based Brookfield Properties. The agency agreed to pay $23.25 a square foot annually for that space.
Combining the first-year rates on both the sublease and direct lease works out to a blended rate of $20.80 annually to start.
That figure does not include building expenses, currently estimated at $11.11 per square foot annually. The labor department, and other tenants, pay that on top of the base rent. While building expenses technically include property taxes, real estate leased by the state is not taxed — a fact that saves the department another $5 a square foot.
After its sublease deal with Concentrix ends, the labor department will directly lease the same floors from Brookfield, the lease shows.
In aggregate, the labor department will have 131,000 square feet at 707 17th St. through 2040. Base rent will increase slightly in the final decade of the lease, to $25.25 a square foot. Brookfield agreed to contribute $1.18 million for tenant improvements.
Separate teams from JLL represented Brookfield and the labor department. The two brokers representing the state, Patrick Bolick and Kurt Liss, will be paid a commission of $2.63 million — but will credit 45 percent of that back to the state, leaving JLL with $1.44 million, according to the documents. CBRE represented Concentrix.
