REAL ESTATE
$500 million Cherry Creek redevelopment project underway
Businesses like Sistain and Crate & Barrel closed their locations at 2500 E. 2nd Ave., Suite 110 and 101 in late January for work to begin on Cherry Lane, a nearly two-block redevelopment project formerly called Clayton Lane. Now, abatement work is underway to remake the vacant Sears store site near Whole Foods Market at Clayton Lane and East 2nd Avenue. Cherry Lane will include nearly 380 apartments and office and retail spaces…The first phase includes demolishing the former Sears and Crate & Barrel buildings and converting the parking garage and service alley into a mixed-use development. The current parking garage will become a nine-story, retail and multifamily development, according to plans submitted to Denver. A six-story office and retail building will also be built at the northwest corner of East 1st Avenue and Clayton Lane. It will have one or two levels of ground-floor retail and a rooftop steakhouse and bar, Matt Joblon, founding partner and CEO of BMC Investments, told the Denver Business Journal…Overall, Cherry Lane will feature 59,063 square feet of office space, more than 1,200 parking spots and 132,665 square feet of retail and restaurant spaces, including ground-floor to rooftop units.
https://www.bizjournals.com/denver/news/2025/04/03/cherry-lane-redevelopment-begins-in-denver.html
Tariffs at the Door: How Trade Policy Could Influence Local Real Estate
The historically high tariffs proposed by the current administration have surprised many in the business and investor community and prompted turbulent market reactions. The S&P 500 lost about 10 percent in the week following April 2nd before strongly regaining ground on the news of tariff suspension; expectations about interest rate cuts at the next Federal Reserve meeting keep swinging as headlines update rapidly. These developments and their associated uncertainty could significantly alter economic activity across the United States. Real estate professionals—from developers to investors—may need to re-evaluate underwriting assumptions and growth expectations. Tariffs influence both the supply and the demand for space among businesses and households. A closer look at these impacts can shed light on how changes in trade policy might reshape real estate markets in local economies.
https://urbanland.uli.org/tariffs-at-the-door-how-trade-policy-could-influence-local-real-estate
Scramble, pause or push forward: CRE industry grapples with new tariff landscape
So far, real estate attorneys say they haven’t seen commercial real estate deals get canceled, although there’s been an uptick in extensions when possible. Skidmore said that especially in deals that don’t have hard money committed yet, real estate groups are trying to kick the can down the road until there’s greater certainty on where tariff policy will end up. That could mean deals initially expected to move forward this quarter could get pushed to the third or fourth quarter of this year, at minimum. “If it’s credit-worthy parties involved, I’m not seeing outright cancelations,” Skidmore said. “I don’t think anybody has gotten to that dire of a situation yet. That can well change between now and June 30. [But] it’s too early in the year and, I think, it’s too early … for the panic to set in.”
https://www.bizjournals.com/denver/news/2025/04/16/tariffs-commercial-real-estate-transactions.html
Diversifying Portfolios: Commercial Real Estate Investors Pivot to Data Centers, Seniors Housing, and Other Alternative Property Types
“Within private equity real estate, investors are increasingly pursuing alternative or niche sectors with strong occupancy and core-like characteristics,” says Arthur Jones, senior director of real estate research at Principal Asset Management. Data centers, in particular, have moved to the top of the list for many investors due to explosive demand from AI that is resulting in exceptionally low vacancy, now hovering just above one percent in the North American market. The Sun Belt housing market is so weak the largest U.S. homebuilder pulls back
https://urbanland.uli.org/capital-markets-and-finance/diversifying-portfolios-commercial-real-estate-investors-pivot-to-data-centers-seniors-housing-and-other-alternative-property-types
The Sun Belt housing market is so weak the largest U.S. homebuilder pulls back
The 2025 spring selling season isn’t shaping up the way publicly traded homebuilders had hoped. KB Home, a giant homebuilder, told investors on March 24th that the traditionally strong spring buying window was off to a weaker-than-anticipated start. Just days earlier, Lennar, the nation’s second-largest builder, had offered a similar readout on its March 21 earnings call. Now, D.R. Horton—the largest homebuilder in the U.S. and No. 120 on the Fortune 500—is adding its voice to the chorus.
https://www.fastcompany.com/91321649/housing-market-sun-belt-is-so-weak-the-largest-u-s-builder-pulls-back
The Inventory Dilemma: Why Existing-Home Sales Are Falling Short
The existing-home market continues to face a short supply of homes for sale, despite the latest progress of a 20% annual uptick in inventory. With just a 4 months’ supply of inventory, existing-home sales fell nearly 6% in March compared to February. Sales were down 2.4% from a year ago, the National Association of REALTORS® reported Thursday. “That may begin to shift,” says Lawrence Yun, NAR’s chief economist. “As time passes, life events—such as job changes, family transitions or financial needs—could prompt more homeowners to sell, even if it means giving up their low locked-in mortgage rates.” As it stands now, about 44 million homeowners have a mortgage rate below 6%, according to an NAR analysis. That’s lower than the current 30-year fixed-rate mortgage, which has been averaging in the mid- to high 6% range. Buyers with financial wherewithal are bypassing mortgages altogether: All-cash buyers continue to make up a sizable share of the market, comprising 26% of existing-home sales transactions in March, according to NAR’s data.
https://www.nar.realtor/magazine/real-estate-news/the-inventory-dilemma-why-existing-home-sales-are-falling-short
March 2025 Commercial Real Estate Market Insights
At the beginning of 2025, office demand showed signs of recovery but wasn’t strong enough to push net absorption into positive territory, leaving vacancy rates near record highs. The retail market stayed tight, constrained by a lack of new supply, while industrial vacancies continued to climb, contributing to a deceleration in rent growth. At the same time, the multifamily sector remained robust, with demand nearing the peak levels last seen in 2021.
https://www.nar.realtor/research-and-statistics/research-reports/march-2025-commercial-real-estate-market-insights
Data Centers Take Center Stage
“Whether you’re streaming videos, scrolling through apps on your phone, no matter how data is consumed, it’s routed through a data center,” says John McWilliams, head of data center insights for Cushman & Wakefield. In real estate terms, he notes, “Data centers are what we have considered an alternate asset,” as opposed to, say, office, industrial, retail and multifamily. “But over the last 20 years—first with the big boom after cloud computing arrived, now with the emergence of generative AI—development has been growing rapidly, investment has been surging, and revenues the data center industry earns are increasing rapidly.” Given the uncertain prospects of traditionally mainstream asset classes, data centers are emerging even more from their niche status, he adds. Rather than by acreage or square feet, as in other areas of commercial real estate, data center projects are gauged by the amount of electrical power they consume. “We measure the market in terms of capacity, megawatts or gigawatts,” says McWilliams. The sheer volume of data routed through these centers has grown tenfold over the last decade, to reach a projected total of 181 zettabytes this year, he says. For reference, a zettabyte is 1 trillion gigabytes, equivalent to about 250 billion DVDs. A December 2024 report by the Department of Energy estimated that the power consumed by data centers in the U.S. tripled over the past decade and could triple again by 2028, when it could consume up to 12% of the nation’s electricity.
https://www.nar.realtor/commercial/create/data-centers-take-center-stage
Study shows widespread new urbanist zoning reform
At the beginning of this century, just a handful of form-based codes (FBC) had been adopted nationwide. Conventional zoning, separating uses and housing types, was standard in US cities and towns. A new analysis of more than 2,000 zoning codes across the US using artificial intelligence (AI) reveals “widespread adoption” of FBC principles and language—beyond what new urbanists may have suspected. “An AI-based Analysis of Zoning Reforms in US Cities,” by Emily Talen of the University of Chicago and Arianna Salazar-Miranda of Yale University, shows that 89 percent of codes have any form-coding, 72 percent have a moderate FBC adoption, and 33 percent—about a third—have strong adoption…FBCs were created by new urbanists to address the difficulty in getting approvals for neighborhood development that follows principles of New Urbanism. “FBCs are associated with higher floor-to-area ratios, narrower and more consistent street setbacks, and smaller plots. We also find that places with FBCs have improved walkability, shorter commutes, and a higher share of multifamily housing,” the authors report. “These results show that planners have real opportunities to reshape urban environments toward more human-centered outcomes through thoughtful zoning reforms,” says Salazar-Miranda.
https://www.cnu.org/publicsquare/2025/04/14/study-shows-widespread-new-urbanist-zoning-reform
Mayor Mike Johnston Announces New Denver Permitting Office
The DPO will help stimulate economic activity in Denver by improving customer service and breaking down barriers for residents and developers trying to build housing or open businesses in the city. With this announcement, Mayor Johnston made a historic public commitment to get every permit submittal completed within 180 days of time in the city’s hands.
https://www.denvergov.org/Community/Building-and-Development/Permit-Office
The Shift to Extremes: Rethinking Office Design
As everything increasingly presents itself as a high-stakes moment vying for our attention, the ‘normal’ has no chance — hyper is the new baseline. Work and the workspace are no exception. As the nature of work has evolved, so too have the demands placed on the office. The once-standardized office environment is increasingly seen as inadequate for supporting the diverse and specialized work modes that modern employees require. This trend is driven by several factors, including the rise of remote work, advances in technology and changing work habits that prioritize flexibility and efficiency.
https://www.gensler.com/blog/shift-to-extremes-rethinking-office-design
5 Ways Suburban Office Campuses Are Transforming Into Thriving Communities
Data suggests that suburban office markets show better rent growth rates and lower vacancy rates than urban downtowns, according to Moody’s Analytics CRE. The suburban tenant mix is also changing, with a diverse mix of tech and creative tenants, professional services firms, and medical or life sciences companies, compared to the distribution and call centers of the past. As investors and companies look for redevelopment opportunities in the suburbs, large, sprawling campuses are being rethought and redesigned with more flexibility and modern amenities.
https://www.gensler.com/blog/5-ways-suburban-office-campuses-are-transforming
Upgraded office buildings have a strong record in recoveries. This time could be different.
The next few years could be like the early 2010s in several respects. The amount of office space currently under construction has fallen below 70 million square feet, a level not seen in nearly 13 years. With groundbreakings also near record lows, the amount of first-generation space available to companies looks to be constrained for some time to come. Meanwhile, the amount of occupied space has risen for two consecutive quarters, and leasing volume has returned to its customary pre-pandemic level. As long as the economy avoids a recession, the conditions for the sector’s long-awaited recovery appear to be in place.
https://www.costar.com/article/762395632/upgraded-office-buildings-have-a-strong-record-in-recoveries-this-time-could-be-different
REAL ESTATE AND MOBILITY
The Evolution of Gas Stations: From Roadside Stops to Architectural Landmarks
Today, with the rise of electric vehicles, gas stations — and their emerging counterpart, charging stations — are undergoing yet another transformation. Unlike conventional fueling, EV charging requires extended dwell times, necessitating new spatial configurations. This shift redefines the architectural significance of these infrastructures, turning them from fleeting stops into places of permanence and interaction, challenging architects to rethink their role in contemporary mobility networks.
https://www.archdaily.com/1028278/the-evolution-of-gas-stations-from-roadside-stops-to-architectural-landmarks
Conference: Parklets Key to Rolling Back Motordom’s Takeover of the Streets
“Throughout history streets were just where life unfolded. Transportation and movement were just part of it. Just one priority,” said Blaine Merker of Rebar, an artist collaborative best known for instigating Park(ing) Day, and one of the keynote speakers. Streets were used by vendors, for social occasions, and for play, he explained. But in the early 20th Century, the introduction of the motor car quickly took over streets for a single purpose. “The entrance of fast-moving machines into this environment was shocking to people. It didn’t seem normal. It was outrageous in the Nineteen-teens.”
https://sf.streetsblog.org/2025/04/10/conference-parklets-key-to-rolling-back-motordoms-takeover-of-the-streets
MOBILITY
RTD’s three-year focus on ‘Reclaiming Union Station’ delivers tangible results, improved safety and security
The Regional Transportation District (RTD) is reporting a nearly 60 percent reduction in security-related calls and a three-year decrease in reports of criminal activities between 2022 and 2025 at Denver Union Station…In March 2022, RTD publicly announced a robust plan and timeline to “Reclaim Union Station,” a collaborative and multi-faceted strategy aimed at enhancing safety and security at the location. RTD’s efforts to create a welcoming transit environment for agency employees and bus and rail customers included support from the City and County of Denver, Denver Police Department, Downtown Denver Partnership, Sage Hospitality, Lower Downtown Neighborhood Association, as well as several local businesses and downtown Denver residents…Over the last three years, RTD’s multifaceted strategy has focused on hiring more sworn police officers and establishing 24/7 patrols. In addition to deploying contracted security personnel on the rail platforms and in the underground bus concourse, RTD has a dedicated team of POST (Peace Officers Standards and Training)-certified officers to patrol Denver Union Station around the clock.
https://www.rtd-denver.com/community/news/rtd-s-three-year-focus-on-reclaiming-union-station-delivers-tangible-results-improved-safety-and-security
Congestion Pricing Drops Holland Tunnel Delays by 65 Percent
According to a Curbed article by Christopher Bonanos, “The Holland Tunnel, at rush hour, has 65 percent fewer delays than it did before, and the time it takes to get through is down 48 percent. In those 100 days, 6 million fewer cars drove into lower Manhattan than had done so a year earlier.” An unexpected side effect: complaints about excessive honking were 70 percent lower in January and February than in the same period last year. When it comes to revenue, the MTA received roughly $100 million from the toll program through the end of February.
https://www.planetizen.com/news/2025/04/134805-congestion-pricing-drops-holland-tunnel-delays-65-percent
Surge pricing, the scourge of ridehailing, is evolving for the robotaxi era
Customers grumble about higher fares, but Uber and Lyft executives have insisted that surge pricing benefits them by attracting additional drivers, which allows the companies to fulfill more trips and reduce wait times. That justification makes intuitive sense, but it raises an awkward question about robotaxis, which are expanding across the US, from San Jose, California, to Washington, DC. If surge pricing is intended to expand the driver pool, why is it now being used by companies with driverless vehicles?
https://www.theverge.com/autonomous-cars/652010/robotaxi-surge-pricing-waymo-uber-price-demand
Smart Roads: Everything You Need to Know
Think of smart roads as autonomous vehicles’ (AVs) silent partner. Improving smart infrastructure on our roadways not only will help AVs navigate roads better and safer, but it will also enhance the entire transportation system’s performance. AVs are touted as safer than human-driven vehicles since most accidents are due to human error. But before AVs are market-ready, technology advances are still needed to improve the vehicles’ ability to see around obstacles such as trucks and to anticipate pedestrian and vehicle movement. For Construction Pros argues that smart roads are just as important as smart vehicles. The focus should go beyond AV technology to include upgrading the existing road infrastructure. Although some AV manufacturers don’t rely on smart roads, the publication says their development can play an important role in speeding up the adoption of AVs.
https://www.simplilearn.com/smart-road-technologies-article
Lessons from Tokyo: the world’s largest city is car free
Today, there are more than a hundred different train lines spanning Tokyo. Rapid-service commuter lines carry millions of people from bedroom communities to work in the city center. A massive system of bullet trains connects Tokyo to other major metropolitan hubs, traveling at speeds well over 150 miles per hour. Public transit in Boston, on the other hand, lumbers along fitfully on a good day and ridership has been declining since the 1960’s. Subway lines have been long-plagued by slow zones, and commuter trains only reach a maximum speed of 79 miles per hour. The MBTA is facing major operational and budgetary challenges due to decades of underinvestment .
https://www.wgbh.org/news/local/2025-04-08/lessons-from-tokyo-the-worlds-largest-city-is-car-free
AFFORDABLE HOUSING
They wanted to build affordable housing. The town took their land.
The case touches on two hot-button issues: eminent domain – which allows governments to seize private land for public benefit, such as a highway – and affordable housing. The latter has become a rallying cry as home prices have soared, but as they do in Johnston, people typically want it built somewhere else. Both sides in the Johnston case also offer competing definitions of what the American dream looks like for the children of immigrants.
https://www.csmonitor.com/USA/Justice/2025/0423/eminent-domain-affordable-housing-johnston-rhode-island
Colorado’s housing needs are colliding with water scarcity. Here’s what lawmakers are doing about it.
The legislation would require water districts to consider offering discounts for water conservation measures, like expected long-term water usage and the use of water-efficient appliances and graywater systems. Or, districts could tie their fees to home size based on square footage, or the number of bedrooms and bathrooms. The bill also says water districts should make sure tap fees are closely tied to expenses, and districts must provide water if they have the capacity to do so. Many districts, like Aurora Water and Denver Water, already use these best practices, and it’s been a success. But some communities have raised concerns about “bad actors” charging too much, Stewart said.
https://coloradosun.com/2025/04/11/colorado-affordable-housing-water-scarcity-legislature/
Converting Housing from Market-Rate to Deeply Affordable
The primary benefits of converting existing units to affordable housing include their cost-effectiveness, with a simpler financing process compared to ground-up development, as well as speed. “A tipping point for Community Solutions came in 2017, when we opened a new affordable housing development in Washington, D.C.,” Foster says. “We were getting accolades for developing a 121-unit building, but it took us seven years to complete . . . . With a conversion project, we can get residents moving in within 60 days and have a much higher impact.”
https://urbanland.uli.org/converting-housing-from-market-rate-to-deeply-affordable
San Jose Considers Arresting Homeless People Who Refuse Housing
It’s rare for leaders in the liberal Bay Area to adopt such an approach, which critics say criminalizes homelessness. But his idea has drawn widespread support. While there remains opposition, interviews with residents, elected officials and advocates show that rising frustration with homelessness is making Silicon Valley voters desperate for action and leading them to proposals that once would have seemed too right-leaning for these heavily blue cities.
https://www.nytimes.com/2025/04/20/us/san-jose-homeless-arrest.html
Atlanta’s Housing Approach Offers a Model for Other Cities
Although Atlanta is a work in progress, the key to its success so far has been its focus on the city’s seven most distressed neighborhoods. These communities share several characteristics: a high percentage of children living in poverty, low high school graduation rates, limited broadband adoption, a significant number of rent-burdened households, widespread health challenges such as diabetes, poor access to fresh food, and a high percentage of residents without health insurance. To confront those challenges, Atlanta brought together the leaders of various entities working on housing-related issues, including the housing authority, a community foundation, a land bank, the city transportation department and the public school system. Collectively known as the Affordable Housing Strike Force, this group coordinated efforts to ensure that all stakeholders worked toward a shared goal.
https://www.governing.com/urban/atlantas-housing-approach-offers-a-model-for-other-cities
