Newmont Mining leaving HQ space

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Newmont
Newmong Mining is vacating its space in its world headquarters, providing a rare opportunity for prominent signage for a company that replaces the giant gold producer in the Palazzo Verdi office tower in Greenwood Village. Source: Cushman & Wakefield.

Newmont Mining Corp., the world’s largest gold producer, plans to vacate its current world headquarters in Greenwood Village – but not right away.

Newmont, which has a market cap of almost $20 billion, plans to leave the 233,950 square feet it leases in the Palazzo Verdi building in October 2020.

Newmont was an original and anchor tenant in the tower developed by the John Madden Co. in 2008. Newmont occupies 73.6 percent of the 15-story building at 6363 S. Fiddler’s Green Circle.

Newmont plans to move into a new office building that will be developed by Prime West at its Belleview Station site, according to a source. Prime West’s first office tower on the site, One Belleview Station, is 100 percent leased. Jim Neenan, the president and CEO of Prime West, couldn’t be reached Thursday. The source said Newmont will take about 170,000 sf in the new building, which could break ground as early as this month. The new office building will have about 300,000 sf, he said.

Newmont
This map was prepared by the Cushman & Wakefield team listing the Newmont Mining office space in Palazzo Verdi.

The current space, which includes floors 6-12 at Palazzo Verdi, has been quietly listed by the Cushman & Wakefield team of Doug Wulf, Dan Miller and Andrew McCabe. One team member on Thursday said they will soon be making an announcement about the space and the area.

The Newmont space represents the largest contiguous block of Class A office space available along the southeast corridor.

It is an “incredible large opportunity at the foot of light rail … Palazzo Verdi is ideally located in the heart of Village Center Station, within walking distance to numerous retail amenities and immediate access to Arapahoe Road and I-25,” according to the Cushman & Wakefield team’s marketing material.

The team also described the space as a “once-in-a-decade opportunity,” noting that Newmont space provides “unsurpassed mountain and CBD views.”

The building has a LEED Gold certification by the U.S. Green Building Council.

“This is the best space in southeast Denver,” said one broker familiar with the Newmont offices.

Because it is so early in the leasing process and Newmont won’t be leaving for almost two years, it is difficult to predict whether one company will take all of the space or multiple tenants will backfill the Newmont space, according to experts. However, the Cushman & Wakefield team, in its marketing brochure, noted that a company that took over the Newmont space would have a prime space on the top of the building to promote its name.

However, given the strength of the office market, it is likely that a company would want all of the Newmont space, according to John Winslow of Winslow Property Consultants.

“In today’s market, I would guess there are three or four major companies that will (want) to take down the entire space,” Newmont is leasing, said Winslow, who is not involved in the listing, but has been a keen observer of the Denver-area commercial real estate market for decades.

“Ten years ago, it may have taken 18 months to two years to absorb that space, but with this crazy market that seems to have a never-ending story, the entire space may be spoken for with a letter of intent by Christmas,” Winslow predicted.

A Newmont official did not return a phone call seeking comment from the Colorado Real Estate Journal Thursday.

If you scratch the surface of just about any deal, there is a story behind it. The Rebchook Real Estate Corner looks at the what and who that make the Colorado commercial real estate industry spin every Tuesday and Thursday online at CREJ.com. The people behind the deals are passionate about what they do, whether they focus on offices, apartments, industrial, retail, land or lending. They also are passionate about their clients. Given the cyclical nature of commercial real estate, those who prosper in it have plenty of stories to tell. I hope to share them with you. 

This column includes news stories, in-depth looks at deals, profiles, Q&As and pieces on the latest trends. Contact John with story tips at JRCHOOK@gmail.com or 303-945-6865.

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