Colorado’s Retail Sector Reemerges Amid Strong Market Signs

By Stuart Zall, President, The Zall CompanyNo matter how you look at it, Colorado is in a great position for strong post-pandemic recovery and growth. People are moving here from around the country at historic numbers. With low interest rates and an influx of buyers prepared to pay well over asking prices, the residential real estate market is experiencing unprecedented activity, and we expect the commercial market to follow suit.[caption id="attachment_294808" align="alignright" …

Industrial Leasing Activity Outpaces New Construction in Denver

By Tyler Smith, Managing Director, Cushman & WakefieldWhile the office and retail sectors in Denver continue to grapple with pandemic-related disruptions, the industrial sector remained the dominant performer within the commercial real estate market through the early part of 2021.The Denver industrial market recorded more than 718,000 square feet of positive net absorption, and nearly 3.8 million square feet of leasing activity during the first quarter of 2021. However, with …

Colorado Springs Industrial Market on Pace for Another Level Year

The Colorado Springs industrial market has trended positively over the past 10 years. Though it is a very gradual trend, we are now at a point where we anticipate the market to slow or level off. The market will not see a lot of change throughout 2020, though we expect the market to stay positive due to the lack of new construction, high costs, possible hesitancy related to elections and lack of available quality industrial product.[caption id="attachment_254325" align="alignright" …

Colorado Is Experiencing Residential Growth, But Uncertainty Could Temper That

The past 10 years has brought population growth to Colorado, which many associate with Amendment 64, or the legalization of marijuana, along with an overall flat interest rate. The new issue is whether Colorado can sustain this growth, despite the heavy focus on affordability.    So far, however, the state has experienced continued growth in population, income and multifamily sales volume, according to CoStar. Tapestry Segmentation also reports a median household income in the Greater Denver …

Is Class B Office the Big Play for Denver in 2020?

The Denver office market remains strong. Vacancy continued to compress in 2019 as rental rates and sale prices forged ahead to the highest levels in history, allowing landlords and sellers to remain in control of the market. Class A office transactions accounted for $1.7 billion in office sales in Denver Metro over the past year, versus $1.2 billion of Class B office sales, with average market cap rates of 6.6 percent and 7 percent, respectively. Interestingly enough, vacancy rates are higher …

Colorado Hotel Market Fundamentals Remain Stable Despite Increased Construction Activity

Strong gains in population and travel spending highlight Colorado as an increasingly popular place to work and visit, boosting demand for hotel rooms in the state. Leisure travel spending has climbed by 28.9 percent over the past five years, surpassing $22 billion in 2018. More than half of those funds were spent on commercial lodging. Business travel is also bolstered by companies either entering or expanding in the state. These demand factors translate to hotel occupancy and revenue metrics …

Denver’s Industrial Market Is Still Going Strong

Denver’s industrial real estate market continues to fire on all cylinders with 37 consecutive quarters of positive net absorption, record amounts of new supply and record-low cap rates for investment properties. The region’s industrial product has benefitted greatly from a strong and diversified economy, significant population growth both locally and regionally and the continued trend by companies to modify their supply chain to accommodate same-day deliveries. Demand has come from existing …

Innovative Solutions Continue to Push the Office Market in Denver

Denver was one of the top major metros targeted by commercial real estate investors in 2018. This year is proving to be no different as the third quarter closes out with a flood of office deals. Office investors are being forced to look for deals outside Denver’s urban core. Value-add acquisitions are mainly redevelopments driven by tenant demand for “cool” workspace and talent wars. There is no arguing Denver’s office market is maturing, but there appears to be no threats of an …

Investors Continue to Pay a Premium for STNL Retail Properties in Colorado

Single-tenant, net leased (STNL) retail properties continue to be among the most highly sought-after real estate investments. This is particularly true in Colorado and California where supply and demand constraints have created sales with significant premiums.[caption id="attachment_204749" align="alignright" width="100"] Zach Wright, Pinnacle Real Estate Advisors.[/caption] Investors are accustomed to paying low cap rates for single-tenant assets within California as these properties have …

Industrial Investors, Developers Turn Up the Heat in Denver

Denver industrial assets are achieving record pricing as cap rates compress well below 5 percent for Class A product. As this is happening, developers are taking on hefty projects, signaling that Denver’s industrial real estate cycle is stretching its legs instead of winding down.[caption id="attachment_204754" align="alignright" width="100"] Jessica Ostermick, CBRE[/caption] Among the headlines: • Denver’s single largest investment transaction on record occurred in the first …

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