Commercial eruption covering Broomfield

BROOMFIELD – Planner Arne Carlson isn’t sure whether – of all the cities in Boulder County – the one for which he has worked 14 years has the most remaining build-out potential for commercial space.

“I guess that would be correct,” he says. “Probably.”

What Carlson knows for sure is that the commercial land use accounting summary shows more than 7.8 million square feet of commercial space in existence and that only slightly more than a quarter of the build-out employment number has been reached; current employment estimates show 16,227 jobs in the city. The master plan shows a potential for 61,000.

You don’t need a calculator to figure out that that’s a lot of commercial space lying in wait.

You think the 96th Street Interchange is on fire, wait until large parcels of space elsewhere in the city get developed.

The residential map isn’t so dissimilar. The city has 38,000 people now. At build-out, it expects to have 67,000; the land use summary shows there are 13,861 existing units – about 2.79 people per household. That means there will be a tad more than 24,000 housing units at build-out.

‘Pedestrian friendly’

In the commercial arena, Broomfield more than wants a downtown. It is in the works. It will be 18.36 acres with a library, arts center, entertainment and restaurants in a “pedestrian friendly environment” bordered by First Avenue on the south, Main Street on the west, Lamar Street on the east and Community Park Road on the north.

Last year a planned unit development (PUD) was approved that established general uses for the properties, which have all utilities. The next step is the library site. Then there’s talk about a bond election next year for the arts center. Commercial development could come after, once the city selects a developer.

Other commercial centers are anticipated to take off, too. Not that Broomfield isn’t excited that the 96th Street Interchange voters approved is now on fire with commercial activity.

“Everything’s moving along according to schedule,” Carlson says of the area. “Everybody’s pretty pleased with the progress.”

Here’s an overview of the face-paced development at the 96th Street Interchange:

* Interlocken business park itself, which started the fire by attracting large corporate users such as Sun Microsystems and Level 3 Communications, has fewer than 100 acres to go before build-out of its 1,000 acres.

* Interlocken’s retail contemporary, FlatIron Crossing shopping mall, will have 1.5 million square feet of high-end retail such as Nordstrom and Lord & Taylor on 170 acres when it opens in August. About 710,000 people live within FlatIron Crossing’s immediate trade area, a 10-mile radius. They earn an average household income of more than $50,000. The mall developer, Westcor Partners of Phoenix, expects the mall to draw shoppers from as far away as Longmont, Fort Collins, Greeley, Loveland, Laramie, Wyo., and Cheyenne, Wyo., which represent an additional 450,000 people.

* East of FlatIron Crossing and north of Interlocken, Newport Beach, Calif.-based Koll Development Co. has assembled 70 acres for about a million square feet of entertainment, retail, restaurants, office space and three hotels. The development is to be called Broomfield Village.

* Immediately south and southwest of the mall, FlatIron Real Estate Group LLC, a joint-venture between MidCities Group and Alliance Commercial, is developing 2.9 million square feet of retail, office, hotels – including a 365-room full-service hotel – and luxury multifamily housing units on 130 acres. Former Interlocken General Manager Garrett Baum, now president and general manager of FlatIron Real Estate Group, said about 600,000 square feet has been allocated to retail. He said the balance could go to any number of uses or a mix as allowed by the PUD, but the development is expected to include an athletic fitness center and a medical office building, and that a Marriott Towne Place should break ground shortly. “I have more activity than I have land,” Baum said.

True romance

The office market represented by Interlocken and adjacent developments such as Mountain View Corporate Center and Eldorado Ridge has continued to be a whirlwind romance for commercial brokers.

Mark Stolte of Cushman Realty Corp., the listing agent for multi-tenant building 295 Interlocken Blvd., said there’s about 20,000 square feet left to go in that speculative project. He said high-tech companies continue to express a preference for the corridor because they can tap into both Denver and Boulder labor forces.

Tenants in Interlocken proper also enjoy the prestige of the business park: Stolte says 295 Interlocken is what “sophisticated corporate users are looking for when making corporate facility decisions.”

Ken Gooden of the Staubach Co., who specializes in representing tenants in the northwest submarket, agrees that the location of Interlocken in relation to labor markets has been a big factor in its success, adding that clients needing space in five to six months also are looking at “all the obvious spots” – 295 Interlocken, 380 Interlocken, Mountain View and Eldorado Ridge – because they’ve got the space.

But not forever: The first facility of a three-building Mountain View Corporate Center is committed and building three is seeing tons of activity, said listing agent Frederick Ross’ Scott Garel, who adds that reports of overbuilding in the corridor have been greatly exaggerated.

“If anything, that market improves,” he said.

Cushman and Wakefield’s Chris Phenicie, who, with David Hart, is the listing agent for Interlocken’s recently approved 380 Amber Drive, said the building has generated “absolutely great interest.”

The building will be 250,000 square feet and 10 stories.

Phenicie said 370 Interlocken Blvd. has about 5,000 feet left and that – because of deals in the works – the building is about 99 percent leased. Yet there is still opportunity for a couple small tenants, Phenicie says.

Deals are also in the works for Eldorado Ridge office complex, where Abacus Direct is rumored to be considering taking another 30,000 square feet for a total of 105,000 square feet. “Which really puts them up there with the major tenants in the market,” Phenicie said.

Phenicie said overbuilding in the corridor at large is a concern.

“The real concern with that market right is waiting to see how long it is going to take for the market to stabilize,” he said.

Developers put up so much product in 1998 and 1999 that it will put the brakes on for 2000 and begs the question of how long it will take before it all is absorbed.

“It’s great for the tenants, but what has it done for the overall market?” Phenicie asks.

“In the grand scheme of things, once you take 10 steps in either direction of Interlocken you start to question what the hell the market is doing. … I think too many people try to be Interlocken.”

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