1125 17th St. (BusinessDen file photo)
A Bay Area-based software company that got incentives to grow a downtown Denver office is now looking to shed half of it.
The 16th floor of a 17th Street downtown office tower hit the sublease market.
Xactly, a San Jose, California sales software company, leases two floors at 1125 17th St. The company’s logo is affixed to the top of the building. The tech firm is looking to sublease two suites that are both slightly bigger than 5,000 square feet, accounting for about half the floor area, per a marketing brochure for the spaces.
The remaining half of the floor, nearly 10,000 square feet, was taken on by European sports book Tipico, the company confirmed to BusinessDen. Tipico was unable to comment further by press time.
“Like many organizations, Xactly’s workforce is now hybrid in nature,” the company said in a statement. “With many remote employees across the U.S., we have decided to optimize our physical footprint to keep pace with the agile demands of the market,”
The firm, which leases 40,000 square feet across the 16th and 17th floors of the 1125 17th building, declined to answer questions about the business’ footprint in the building, its number of employees and what its office attendance policy is.
The suites – which are available starting next month – are marketed at $29 a square foot for a term running through September 2029.
The move comes six years after Xactly’s CEO told The Denver Post it was making the city “our center of gravity,” seeking to have more people working in its Denver office than its own California headquarters.
Xactly opened its first office in Denver in 2011. It once took up space in LoDo at 1860 Blake St. before moving to its current location in 2018, which roughly coincides with the firm being promised an $11.1 million tax credit from the state if it hired 479 new full-time employees with average salary of about $100,000.
Xactly is not the only firm giving up downtown office space – there’s 2 million square feet of downtown sublease space on the market, per an April CBRE report.
“Traditionally we always run with some space on the sublease market, but it’s nowhere near where it’s been over the last three or four years,” said Jim Tyler, a broker with Kentwood Commercial marketing, a sublease of his own at 1730 Blake St.
Several large subleases are available. VF Corp is trying to unload 60,000 square feet across the top two floors of its headquarters at 1551 Wewatta St. by Union Station. Alterra, the firm behind the Ikon Pass, put its entire 41,000 headquarters space at 3501 Wazee St. in RiNo up for sublease in 2022 and has not found a tenant.
The sweet spot for sublease space seems to be between 5,000 and 10,000 square feet, per Tyler.
“If they (sublessees) say they can live with the buildout with the furniture, they’re going to win and save 30, maybe 40 percent (on market-rate rent),” he said.
“The bigger ones are harder because they want to modify the space 90 percent of the time, but who’s gonna pay for it?”
1125 17th St. (BusinessDen file photo)
A Bay Area-based software company that got incentives to grow a downtown Denver office is now looking to shed half of it.
The 16th floor of a 17th Street downtown office tower hit the sublease market.
Xactly, a San Jose, California sales software company, leases two floors at 1125 17th St. The company’s logo is affixed to the top of the building. The tech firm is looking to sublease two suites that are both slightly bigger than 5,000 square feet, accounting for about half the floor area, per a marketing brochure for the spaces.
The remaining half of the floor, nearly 10,000 square feet, was taken on by European sports book Tipico, the company confirmed to BusinessDen. Tipico was unable to comment further by press time.
“Like many organizations, Xactly’s workforce is now hybrid in nature,” the company said in a statement. “With many remote employees across the U.S., we have decided to optimize our physical footprint to keep pace with the agile demands of the market,”
The firm, which leases 40,000 square feet across the 16th and 17th floors of the 1125 17th building, declined to answer questions about the business’ footprint in the building, its number of employees and what its office attendance policy is.
The suites – which are available starting next month – are marketed at $29 a square foot for a term running through September 2029.
The move comes six years after Xactly’s CEO told The Denver Post it was making the city “our center of gravity,” seeking to have more people working in its Denver office than its own California headquarters.
Xactly opened its first office in Denver in 2011. It once took up space in LoDo at 1860 Blake St. before moving to its current location in 2018, which roughly coincides with the firm being promised an $11.1 million tax credit from the state if it hired 479 new full-time employees with average salary of about $100,000.
Xactly is not the only firm giving up downtown office space – there’s 2 million square feet of downtown sublease space on the market, per an April CBRE report.
“Traditionally we always run with some space on the sublease market, but it’s nowhere near where it’s been over the last three or four years,” said Jim Tyler, a broker with Kentwood Commercial marketing, a sublease of his own at 1730 Blake St.
Several large subleases are available. VF Corp is trying to unload 60,000 square feet across the top two floors of its headquarters at 1551 Wewatta St. by Union Station. Alterra, the firm behind the Ikon Pass, put its entire 41,000 headquarters space at 3501 Wazee St. in RiNo up for sublease in 2022 and has not found a tenant.
The sweet spot for sublease space seems to be between 5,000 and 10,000 square feet, per Tyler.
“If they (sublessees) say they can live with the buildout with the furniture, they’re going to win and save 30, maybe 40 percent (on market-rate rent),” he said.
“The bigger ones are harder because they want to modify the space 90 percent of the time, but who’s gonna pay for it?”
