SM Energy Bolsters Downtown Denver Footprint with Major Lease Expansion
SM Energy Bolsters Downtown Denver Footprint with Major Lease Expansion
SM Energy has significantly increased its presence at the Wells Fargo Center in Denver, commonly known as the “Cash Register Building.” The independent energy company has expanded its lease by approximately 50,000 square feet, bringing its total occupancy in the iconic skyscraper to roughly 124,000 square feet across five floors.
The transaction was brokered by CBRE Group, Inc., which represented both the tenant, SM Energy, and the property owner, BCSP Denver Property. This latest move marks the second time the oil and gas producer has expanded its offices within the 52-story tower at 1700 Lincoln St. in the past 11 months.
The growth in physical footprint aligns with a period of corporate consolidation and operational expansion for SM Energy. Last August, the company added 14,000 square feet to accommodate an influx of employees following its acquisition of XCL Resources LLC, a deal valued at over $2.5 billion. More recently, SM Energy completed a merger with Denver-based Civitas Resources, further solidifying its operations in the region.
CBRE Group, Inc. is currently trading at $147.78, reflecting a decrease of 1.08% from the previous close. The commercial real estate services firm holds a market capitalization of approximately $40.84 billion.
What to watch
- Future office utilization rates in downtown Denver as energy firms consolidate post-merger.
- Upcoming earnings reports from CBRE Group, Inc. for insights into the commercial office leasing sector.
Source: original release