VF Corporation

VF Corporation is a global apparel and footwear powerhouse with some of the most recognizable activity-based lifestyle brands like The North Face, Vans, Timberland, Smartwool, and many others. In 2018, they commenced a search for a new global HQ that would consolidate many of their most recognizable brands all in one location. The requirement ultimately zeroed in on opportunities for 300,000 square feet of office space in Downtown Denver that could ideally deliver in 2019, but there was only one building that could accommodate this requirement (1551 Wewatta). To further complicate the situation, Amazon was within a couple weeks of signing a lease for half of the building and removing this option from the market. We knew we had to move quickly in order to step in front of the Amazon deal, but also leverage the value VF Corporation would bring to the landlord.

Unfortunately, the market in Northwest Denver for 150,000 square foot blocks of office space was extremely tight at the time Vail was beginning the real estate evaluation process. Out of the 11 million square feet of office space that comprises the Northwest Denver/Boulder corridor, there was not a single contiguous vacancy over 150,000 square feet. This left Vail with two options - either extend their lease and expand in their current building, or commit to a costly built-to-suit that would take a minimum of two years to execute and construct.

Cushman & Wakefield's key strategic challenge in this situation was to create the leverage necessary to negotiate favorable lease terms with their existing landlord, who believed that Vail's only real option was to stay and expand within their building. After discussions with numerous developers and land owners along the I-36 corridor, Cushman & Wakefield was able to identify one developer who was willing to propose terms on a build-to-suit that were aggressive enough to entice Vail to strongly consider a relocation.

We had full alignment with the VF Corporation team that we had to seize the opportunity, but do so in a highly confidential manner for multiple reasons. Ultimately, we connected directly with the decision maker at Bentall Kennedy and within one week secured a signed LOI on the entire 285,000 square foot building. Additionally, we negotiated a 30-day exclusivity provision in the LOI that both parties would work in good faith to finalize a lease and execute the deal within the allotted timeframe to prevent Amazon from re-engaging with the landlord. By all measures this was a very successful transaction for VF Corporation and will ultimately allow them to occupy their new global HQ in Denver by the end of 2019. We are proud of our team's efforts and grateful for the opportunity to work with VF Corporation on what was the largest office lease signed in Colorado in 2018.