Studley evaluated lease, purchase, and build-to-suit options both in Downtown and Southeast Denver for Newmont. This evaluation created leverage that produced an extremely competitive battle for a large space userin the Denver market.
Although the build-to-suit option was very desirable, the best overall economic solution proved to be a relocation from Downtown to the Southeast Suburban market along the I-25 corridor. Palazzo Verdi was a 300,000 square foot Class “AA” project that was being developed by the John Madden Company that provided the best long-term option.
Studley negotiated a long-term lease with Madden that will allow Newmont to eventually occupy the entire building. Initially, Newmont agreed to lease 156,075 rentable square feet, but over the next several months,elected to lease two (2) more floors. In December of 2008, Newmont moved into 218,505 rentable square feet in Palazzo Verdi. They were able to consolidate from six (6) to four (4) buildings in Denver and their entire headquarters operation is now located in one (1) building. The overall savings by relocating to Palazzo Verdiwas in excess of $12 million in a lease that provided maximum flexibility over a long term.