Challenge: The United States Attorney’s Office (USAO) occupied 72,595 rentable square feet at 17th Street Plaza in Denver for more than 15 years. In 2015, General Services Administration (GSA) began a replacement procurement to complete this requirement in downtown Denver. Although the delineated area for this requirement was extremely small, competition was fierce for this 15-year lease. The competitive set was composed of aggressive and capable institutional owners.
Strategy: Our team represented Brookfield Office Properties in pursuing this requirement. The subject property, 1801 California Street, is a 53-story trophy tower. We worked with the local brokerage team to identify the primary competitive properties. Based on recent lease comparables, we generated estimated offers for each of the competitive properties. We structured our offer to beat those properties and ran all the various offers through GSA’s present value model to ensure success.
Due to the quality and stature of 1801 California Street, the ownership was justifiably concerned with the tenancy of the GSA lease. We spent time understanding the anticipated buildout and the government’s use of the space. After this due diligence, Brookfield Office Properties was extremely comfortable with this tenant.
Result: GSA signed a 15-year lease at 1801 California Street for USAO to occupy 74,115 rentable square feet.