Submarket Spotlight - RiNo/Platte River10/26/2020
Submarket Spotlight - RiNo/Platte River
The River North Arts District (RiNo)/Platte River submarket was arguably one of the hottest submarkets in downtown Denver heading into 2020. Speculative development has reached record levels in multiple parts of the submarket, namely the up-and-coming RiNo neighborhood and ballpark area.
The average daily asking rent has remained relatively flat, although concessions are likely becoming more prevalent. At over $42 per SF, Platte River has one of the more expensive offerings in the Denver metro by a sizable margin. The next highest average rent is in LoDo, which is more than a 10% discount from Platte River rates. Relative to the average office rent in Denver as a whole, Platte River rents are about 50% higher.
The Colorado Governor deems jobs in the construction industry as essential, which has allowed developers to move forward with projects if they chose to do so. With abundant land and underdeveloped prime locations, Platte River will likely be a corridor of growth over the long haul. Since 2013, almost 400 acres of land sales have closed in the submarket totaling over $500 million in sales.
Investment activity has slowed considerably due to drastically altered conditions brought on by the pandemic. Once the dust settles, there could be opportunities for shrewd investors, especially considering the unprecedented level of speculative development occurring in Platte River. Investment activity in Platte River took a step back in 2019 after a record year for sales the previous year. Nevertheless, last year's sale volume was the second-highest market of the cycle.
Featured New Development:
Rev360 on Brighton Boulevard - REV360 joins a thriving commercial redevelopment along Brighton Boulevard that is transforming the area - a rebirth that includes blocks of unique restaurants, galleries and shops. Its close proximity to the RTD rail station will make it an ideal spot for businesses drawing local talent from outside the metro area.
**Information provided by CoStar