mopdf.com

DenverRetail21Q3With Denver suppliers now able to operate at full capacity sinceearlier this summer, key indicators such as leasing activity,absorption, and asking rents responded with stellar improvement.While this looks good for the local market, numerous retailers arestill struggling as a result of the effects of the pandemic, such as thedomination of e-commerce and the rise of the Covid-19 Delta variant,which threaten to undermine the full-capacity advantage.Accelerating success.

DenverEconomic Trends U.S. Unemployment Rate Drops to 4.8% in September Colorado Unemployment Rate Drops to 5.9% from June to July Colorado’s accommodation and food services industry added 3,800jobs in August. The retail trade industry lost 1,700 jobs in August Hospitality and leisure industry has led the recovery by adding49,000 jobs between January 2021 and August 2021, though stillcurrently down 33,100 jobs compared to January 2020. Arts, entertainment and recreation is down 14% (8,100 jobs)Retail21Q3Source: Bureau of Labor Statistics & Common Sense InstitutionNet AbsorptionYTDYOYVacancy Rate5.3%113K SFFORECASTUnderConstructionYOY1.8M SFFORECASTYOYFORECASTDelta Variant Not Only ConcernOverview449K314K5%1.2%12 Mo. Deliveriesin SFAs indicated by an overview driven by the University ofColorado Boulder Leeds Business School, the Delta Variantis just a glimpse of something larger with regards to theassumptions for economic growth. Submerging withthe economic growth concerns with the COVID-19 strainare current government policies, behavior, inflation andsupply chain issues. With declining COVID cases and theimmunization roll out, certainty for the future appears tobe strong. Supply-chain issues have hounded businessessince the pandemic began — and appear to be intensifying.The review additionally showed that close to half of theindividuals who partook in the survey expect that mostof the positions lost during the pandemic will be goingback to full speed ahead by this coming summer. BrianLewandowski, executive director of CU’s Leeds BusinessResearch Division, expressed that the present status ofexpansion ascending in labor and products will promptorganizations to expand their costs proceeding with theinflationary cycle. In Colorado, job levels from January 2020to August 2021 are down 2.94%, or 82,900 jobs in regardsto pre-pandemic levels. According to the BLS, Coloradoranks 16th overall in comparison to the rest of the nationin total employment levels. With that said, Colorado added5,590 total nonfarm jobs in August and would need to add9,567 jobs each month on average to reach pre-pandemicemployment levels by January 2023.12 Mo. NetAbsorption in SF12 Mo. VacancyRate12 Mo. RentGrowthSource: CoStar AnalyticsRelative employment level (%)Comparison of Employment Recoveryfrom Recessions in ColoradoMonths since the start of the recessionSource: Bureau of Labor StatisticsU.S. BUREAU OF LABOR STATISTICSRecent SalesPropertySubmarketSale PriceSize SFPrice SFBuyerSellerSale DateBowles Avenue Marketplace8996 W. Bowles AvenueSouthwest 20,379,406105,000 194.09Dunton CommercialLLCThomas C.SkaarSept. 2021West 17,819,250161,180 111Docuvault DelawareValley, LLCGart Properties ELKCOPropertiesOct. 2021Northwest 14,250,000124,692 114Sidford Capital, LLCScott S. PudalovSept. 2021Colorado Blvd./Cherry Creek 9,000,0009,969 903Jaime Javors300 FillmoreAssociates, LLCAug. 2021West Sixth Commerce Center11111 W. 6th AvenueWestminster Square3001-3055 W. 74th Avenue300 Fillmore StreetSource: CoStar AnalyticsColliers Denver 21Q3 Retail Report

DenverRetail21Q3SalesInvestment activity slowed immensely during the pandemic-Market Sale Price Per SFinduced downturn. Retail was hit the hardest of the majorcommercial property types, making it a challenge for investorsbillion, above the 10-year annual average of 1.2 billion. Saleleasebacks have become increasingly common in the currenteconomic environment. Companies in need of cash havebeen involved in some of Denver’s biggest trades, including aMarket Sale Price/SFwith trailing 12-month investment volume totaling 1.5Sales Volume in Millionsand lenders to underwrite deals. Deal activity has improvedfive-property portfolio deal in August. Capital Automotive RealEstate Services purchased the Medved Autoplex for 59.61million ( 280.80/SF). The 212,000 SF portfolio included autodealerships for Chevrolet, Chrysler, and Suzuki.Sales VolumeDenver Price/SFUnited States Price/SFSource: CoStar AnalyticsQ3 Sales Activity786Sale Comparables6.2% 227Avg. Cap Rate6.6%Avg. Price/SFAvg. Vacancy atSaleSource: CoStar AnalyticsSale Comparables Summary StatisticsSalesAttributesLowAverageMedianHighSale Price 83,905 2,806,197.00 1,665,000 93,822,687Price/SF 15 227 294 5,833Cap Rate3.7%6.2%6.0%16.4%Months Since Sale0.16.05.912.0Property AttributesLowAverageMedianHighBuilding l Floor SFVacancy Rate At SaleYear BuiltStar RatingSource: CoStar AnalyticsColliers Denver 21Q3 Retail Report

21Q3Metro Denver Economic DevelopmentCorporation; Pinnacol Assurance –Recently Announced Projects: Expansion of the Colorado Convention Center inDowntown Denver is now in progress. The work willdeliver a new 80,000 SF ballroom, a 50,000 SF rooftopterrace, and will add about 250,000 SF to the 2.2 millionSF convention center. Finishing of the extension isexpected by the end of 2023. Broomfield Town Square Alliance LLC introduced plansfor a new town square in Broomfield. The master plannedconcept includes about 300 housing units, 20,000 to40,000 SF of office space, and 25,000 to 50,000 SF of firstfloor retail. Minneapolis-based construction firm Mortensonsubmitted a concept plan to the City of Denver proposinga 5-story project at the corner of Walnut and 31st Streetin RiNo. On the 0.43-acre site, the organization intendsto create and assemble a new head base for its Denverground floor retail. Boulder Housing Partners, Trammel Crow Co., and CoburnPartners are arranging a redevelopment project for DiagonalPlaza, a 60 year old strip mall at the southeast corner of28th Street and Iris Avenue in Boulder. In the event thatBoulder City Council supports a unique ordinance for theCombined with restricted limit re-openings, long periods oflower revenues forced a large number of tenants to closetheir doors permanently. This prompted six continuousquarters of negative absorption from Q4 2019 – Q1 2021.Notwithstanding, since late spring when given the go-aheadto operate at full capacity, retailers have seen a lift in retailfundamentals. Sporting goods retailers have remainedpopular through the pandemic and in its largest lease thisyear, Dick’s Sporting Goods took on an additional 43,000 SFat Belmar in Lakewood this past March; bringing it to a totalof 80,000 SF at the location. Restricted new developments,alongside a growing and highly educated, high-incomepopulation with a large concentration of “Big Spenders”(demographic aged 35-54 years), are set to be up-sides in ane-commerce driven market.Absorption & DeliveriesVacancyoperations that will incorporate proficient workplaces andLeasingAbsorption & Deliveries in Millions SFDenverRetailNet AbsorptionNet Deliveriesmixed-use community featuring 291 residential units andUnited States VacancySource: CoStar Analyticsredevelopment, the western portion of Diagonal Plaza andthe surrounding parking lots will be redeveloped into aVacancyVacancy Ratesabout 27,000 SF of commercial space. Seventy-three of theresidential units would be permanently affordable.MallDenverNeighborhood CenterGeneral RetailOther RetailUnited StatesPower CenterStrip CenterSource: CoStar AnalyticsColliers Denver 21Q3 Retail Report

DenverRetail21Q3Single Tenant Triple Net InvestmentPropertySubmarketSale PriceSize SFPrice PSFCap RateBuyerSellerSale Date8601 Sheridan Blvd.Northwest 8,000,00071,367 112N/ATowerInvestments, Inc.RevescoPropertiesJul. 2021Kindercare7395 Church Ranch Blvd.Northwest 3,400,00010,334 3297.00%JamesBlumenthalLinda TurnidgeAug. 2021Advance Auto Parts5520 W. 120th AvenueNorthwest 2,910,0007,000 4155.05%N/ASteve A.Schroeder FamilySept. 2021Source: CoStar AnalyticsRentRetail sales were down in the City of Denver with Downtownfundamentals are consistently improving in these areas.and Cherry Creek among the weakest in the metro.On the other hand, some suburban regions have seen anSubmarkets such as these that depend heavily on daytimeexpansion in retail sales as residents work-from-homefoot traffic were hit the hardest by the virus and theand purchase locally. The Southwest and East Hampdensocial distancing policies. On account of the vaccine, retailsubmarkets were among the rent growth leaders in Q3 2021.ConstructionDeliveries & DemolitionsNow that developers are resuming plans that were previouslymore groundbreakings in coming quarters now that life isdrawing closer to normal. There is currently 1.1 million SFunder construction. Following a long deferral, Glendale CityCouncil gave the go-ahead to locally-based Central StreetCapital to develop the Glendale Entertainment District(GED). The 150 million undertaking will feature a concertThousandsof SF of SFThousandspostponed due to the pandemic, we are likely going to seevenue, movie theater, 200-room resort hotel, restaurants,and additional retail space. Settled in the core of downtownGlendale, this incredible site could become one of Colorado’smost novel amusement locales. Bars, restaurants, pubs, livemusic concerts, and the new resort hotel within GED will bepermitted to sell alcohol until 4:00 a.m. and operate withincommon consumption area. The project is expected to breakground this fall and open in late 2023.Colliers Denver 21Q3 Retail ReportDeliveriesDemolished– Net DeliveriesSource: CoStar Analytics