Denver shares details on its lease with Alterra Mountain Co. – The Denver Post

Denver shares details on its lease with Alterra Mountain Co.  The Denver Post

Denver City Council will put on a landlord hat next week as it reviews the city's first big lease since taking full control of 101 W. Colfax Ave. this summer. A committee with Denver City Council will put on a landlord hat this week as it reviews the city’s first big lease since taking full control of 101 W. Colfax Ave. this summer. Denver is offering Alterra Mountain Co., owner of the Steamboat Springs and Arapahoe Basin ski resorts, a 12-year lease for 64,654 square feet of space in the former Denver Post building. The lease rate will run $22 a square foot from Oct. 1 to Sept. 30, 2038, with the first year free.

That rate is triple net, meaning it excludes operating costs like property taxes, insurance and maintenance, which Alterra will cover. Add those expenses back in, and the lease rate is comparable to the average asking rate for office space across metro Denver. But it represents a discount of about 12% to 20% off downtown office space, a reflection of the city’s desire to make the building profitable and to spur a larger revival in Upper Downtown. The exact discount, however, is hard to pin down because tenants can negotiate substantial concessions off advertised rates in what remains a glutted office market. The first year is