Furious Growth Has Bulldozer-Cranes In The District Again; But Citywide Sales Taxes Keep Dropping
by Glen Richardson
Line Of Fire: Mayor Mike Johnston reveals that he has laid off 171 city workers at a Denver press conference.
Cranes In Creek: With Cherry Creek North’s latest development boom, cranes are again being used to hoist, move, and lower heavy loads.
Political Ploy: Deputy Parks & Recreation Director Scott Gilmore was among city employees laid off. His wife, Councilmember Stacie Gilmore, says, “it was an act of political retaliation.”
Super Single Site: This eight-story 201 Fillmore office building will have first floor retail, an outdoor terrace on the second floor, plus a rooftop patio.
Land Banked Plot: The four-tenant strip from 3035 to 3041 E. Third Ave. where Cucina Colore is located recently sold but the buyer doesn’t have development plans.
Third & Milwaukee: The eight-story Oasis Apartments project is underway at 299 Milwaukee St in the district. The building will have 25,000-sq.-ft. of ground-floor retail.
As downtown continues to struggle — $600 million less commercial construction in 2024 — Cherry Creek North’s latest construction surge is pushing the district into becoming the epicenter of metro Denver.
Cherry Creek attracts major real estate investment, with developers managing to pre-lease buildings long before the projects reach completion. Six major site projects are currently underway and another eight are in the pipeline, securing Cherry Creek’s position as one of the most sought-after commercial real estate submarkets in Colorado and the country.
Or, as the Denver Infill Blog bluntly put it: “If developers and office workers get weak at the knees when they think about Downtown Denver’s office and retail market, post-pandemic, they’re-voting with their feet in favor of Cherry Creek.”
Unfortunately for city employees the opening of the projected stores and their sales tax revenue will not come fast enough to save their jobs.
Reduced City Workers
It’s been 14 years since the last major layoffs of city employees, and it is the first time in living memory that the firings were not based on seniority to the dismay of city employee unions. Workers of all ages have been laid off, including about 20 who served more than 15 years with the city.
Perhaps the most surprising layoff was that of Scott Gilmore who spent more than a decade as the deputy executive director of Denver Parks & Recreation. He is the spouse of City Councilwoman Stacie Gilmore who accused the City Administration of acting in political retaliation against her.
One hundred and seventy one were laid off while another 665 open positions or 7.6% of the total city workforce were eliminated. Denver’s Department of Transportation & Infrastructure was hard hit with 31 people losing their jobs. The largely reviled Community Planning & Developm
Sears Site Makeover: Rendering of building planned at the recently demolished Sears site along 1st Ave. as you enter Cherry Creek North.
ent lost 19 employees. Those two agencies’ cuts may reflect the City’s apparent decision to let private developers control much of the city’s future development.
Unless places like Cherry Creek up the continuing slide in city wide sales tax revenues, more city employee layoffs can be anticipated in the future.
Citywide Benefits
Cherry Creek’s prosperity, of course, spreads benefits to all of Denver. The area employs more than 16,500 workers and is one of the top drivers of retail activity in Denver.
With a high concentration of small and local businesses, it’s no wonder Cherry Creek is the region’s go-to shopping destination. Indeed, retail sales tax is a significant source of revenue to the City of Denver at $60.1 million in 2024. Adding up all tax revenue sources, Cherry Creek contributed more than $115 million to Denver in 2024.
Amid the latest development boom, the City & County is hosting monthly construction coordination meetings with Cherry Creek contractors. Streets affected include North University Blvd. to North Steele St. and 1st Ave. to 3rd Ave. Officials work with contractors to cross-check and coordinate specific street projects within the district. Goal is to not have streets inaccessible to motorists or pedestrians at any one time. Parking, however, is often limited and lane closures are likely.
Low Office Vacancy
While Cherry Creek is a standout submarket in many ways, one of our brightest areas of “exceptionalism” is office real estate.
With an extremely low office vacancy rate of 6.6% in 2024 — down 0.6% from 2023 — Cherry Creek is bucking the national trend of rising vacancy.
The U.S. saw its average office vacancy rise to nearly 14% in 2024. Upshot: Cherry Creek is setting an example for the nation of what “back to office” success looks like. Nowhere is the potential for a strong future for Cherry Creek clearer than new developments.
Sears Site Sway
The largest Cherry Creek redevelopment location is the recently demolished Sears —the store sat empty from 2010 — and Crate & Barrel buildings. The project is adding a new eight-story building to the street wall along 1st Ave. as you enter Cherry Creek and a smaller office building to the intersection of Clayton and 1st. There will be 453 homes and a live-work-play community known as “Cherry Lane.”
The development will feature 379 apartments and 59,000-sq. ft. of office space, according to developers. The parking garage on the block is being renovated, with several floors added to the top of it. There will also be more than 132,000-sq. ft. of luxury store space on the ground floor, as well as a rooftop space open for lease.
“When Cherry Lane is completed, we will have created the anchor for Cherry Creek,” claims Matt Joblon, founding partner and CEO of BMC Investments. He asserts the site will set a new standard for high-end street retail, restaurants, elevated living, and community gathering spaces.
East Side Growing
While much of the building action has been on the west end of Cherry Creek, completion of Modera Cherry Creek — five stories with 95 apartment homes — adds a new eastern extension to the district’s development boom. In a neighborhood where residents live in townhomes and duplexes, apartments are needed. The site has studio, one-, two-, and three-bedroom units. They add a somewhat lower-priced entry point for a household to begin living within the district.
The biggest potential redevelopment site on the east-end of central Cherry Creek is the northwest corner of Third Ave. and St. Paul St. where restaurant Cucina Colore is located. The Italian restaurant has operated there since 1994 and has multiple years left on its lease.
There are a total of four tenants along the 7,000-sq.-ft. street plot from 3035 to 3041 E. Third Ave. The 0.43-acre site recently sold albeit the local buyer says they have no immediate plans to redevelop. “We’ll probably just land bank it for the time being,” they said. The site is zoned for up to four stories.
Fillmore Office Bldg.
The largest single site currently under construction is the 201Fillmore office building. Completion is scheduled for the third quarter of 2026, albeit it appears site work could finish sooner.
At eight-stories, it will total 140,000-sq.-ft. with first floor retail, an outdoor terrace on the second floor, plus a rooftop patio. There will be five levels of below grade parking for both office and retail use.
Restaurant “The Henry” — with locations in Phoenix, Miami, and Dallas — will feature a restaurant and a bar on either side of the lobby. The bar will be situated on the lobby’s north side, while the restaurant will be on the corner of 2nd Ave. and Fillmore St.
Milwaukee Oasis
Another eight-story project underway in the district is The Oasis Apartments at 299 Milwaukee St.
Located on one of the last large parcels in the neighborhood, this residential building will add 158 high-end apartments. The building will have 25,000-sq.-ft. of ground-floor retail plus 277 parking spaces.
Moreover, the project will add a 6,000-sq.-ft. public park with fountains on the corner of Third Ave. and Milwaukee. It will span nearly the entire west side of Milwaukee between Second and Third Ave. Vertical construction is expected to begin early next year, with completion projected in 2027.
