Colorado

Despite the continuing economic uncertainty, the Denver market is maintaining its status as a major thriving city with respect to all aspects of growth from commercial real estate sectors. This growth is clearly apparent by all the cranes in operation as you drive down Interstate 25—the main arterial highway that runs north and south bound through the entire state. Though 1.2 million square feet of retail was built in 2013 – and 197,000 square feet was delivered in the first quarter of 2014 – most of the current cranes are working on medical, office and multifamily developments. With all the national retailers setting their sights on the Denver market, there is a definite lack of A-grade retail centers that have availability. B-grade product is now being thoroughly analyzed as the next best option. Several of the national and regional tenants are in bidding wars against each other for the remaining A- and B-grade sites. The challenge of the development process is the growing cost of land and construction, which ultimately drives the rates up, thus limiting a huge pool of potential tenants. The Denver retail market in the first quarter of 2014 experienced a positive net absorption of 820,357 square …

Fueled by an increase in population and job growth, Denver’s robust housing market and the constant influx of young professionals to the region has attracted some attention. Both new and existing retailers and investors are now looking to either penetrate or expand within this ever-growing market. Metro Denver added a total of 37,300 jobs last year. This was an increase of 2.7 percent from 2011, according to the Metro Denver Economic Development Corp. The region’s growth rate has consistently outpaced the national rate in every decade since the 1930s. By 2020, the region’s population is expected to increase from 2.9 million today to more than 3.2 million. Retailers are definitely taking note. Cabela’s, a Nebraska-based outfitter of hunting, fishing and outdoor gear, has two stores under construction that should be completed in the third quarter of this year. These will represented Cabela’s second and third Colorado locations. The chain already has a Grand Junction outpost. THF Realty also recently completed the 147,806-square-foot Walmart in the Lakeside Shopping Center redevelopment area. Metro Denver has seen quite a few Walmart Neighborhood Markets pop up throughout the region recently. Also new to the Denver market is Trader Joe’s. The California-based specialty grocer plans …

Borrowing a Charles Dickens title, Colorado is “A Tale of Two Cities,” or more accurately, two markets. High density infill markets show strong leasing activity in terms of absorption, rental rates and down time, while lower density rural areas still lag in recovery. Urban markets such as Denver, Boulder and Englewood are returning to earlier days where spaces are quick to fill with an average down time of six months, a waiting list of prospects and increasing rents. For example, a recent side shop vacancy at King Soopers-anchored Belleview Square in Englewood was backfilled with a waiting list of five tenants before the retailer had even closed their doors. On the other hand, secondary and tertiary markets such as Falcon, Colorado Springs and Greeley are slower to lease up with an average down time of 12-15 months and little rent growth. Acquisition activity has not yet recovered, and very few Class A properties are on the market. However, development activity is picking up. Active retail categories include quick service restaurants, health and dental, discounters and mattress stores. One of the interesting trends is the boutique pet store concept occupying less than 4,500 square feet, which seems to be harvesting an …