Commercial Real Estate Report - Denver, CO [Retail]

Property Type

Vacancy in Denver's community-neighborhood shopping center market remains stubbornly high. Indeed, the rate, on a gradual, if uneven, upward track since 2009, reached its cyclical peak during the fourth quarter of 2012. The gain for the quarter alone was 20 basis points; the gain for the year was 30 points. Reflecting high vacancy, weak demand and the subsequent sluggish recovery, rent growth in the community-neighborhood center market has been positive but slow since 2010. Mean asking and effective averages for the fourth quarter of 2012 were up 0.2% each for the year, identical to the rates of increase recorded for 2011. Growth rates for the fourth quarter of 2012 alone, meanwhile, were negative 0.1% for both averages. (4/8/13)

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Latest Quarterly Reports (Q1 2013)

Denver, CO - Entire Metro
Submarkets
South - N -170 bps
South - NC -110 bps
Northeast - C -60 bps
Midtown/CBD - N -50 bps
Midtown/CBD - NC -40 bps
Northeast - NC -30 bps
Northeast - N -20 bps
South - C -20 bps
West/Southwest - NC -10 bps
Midtown/CBD - C -10 bps
West/Southwest - N -10 bps
Southeast - N -10 bps
Northwest - N 0 bps
West/Southwest - C 0 bps
Southeast - NC 10 bps
Southeast - C 20 bps
Northwest - NC 30 bps
Northwest - C 60 bps

Recent Sales

Cap Rate Trend

Sales Trend

Q1
2013
Q4
2012
Q3
2012
Q2
2012
Mean 5.9% 8.3% 8.7% 9.2%
Median 5.4% 5.7% 8.1% 6.6%
12 Month Rolling 7.0% 7.3% 7.2% 6.5%

Commercial Real Estate News

Recent Rent Observations

Location ID Class Rent
Southeast 94097 $20
Southeast R8646 $11
Southeast R8624 $10
Southeast 92401 $24
Southeast 77849 $11
Southeast R8650 $8
Midtown/CBD R8617 $9
Southeast R8654 $8
Midtown/CBD R8574 $13
Northeast R8442 $8

Change From Previous Quarter

Market Rent Vac Inv
Denver 0.1% 0 bps 0.0%
West Region 0.0% 0 bps 0.0%
United States 0.1% 0 bps 0.0%

Metro vs. Region 0.1% 0 bps 0.0%
Metro vs. US 0.0% 0 bps 0.0%

Latest New Construction Updates

Location Size
South 400,000 - 600,000
West/Southwest 400,000 - 600,000
Southeast 0 - 200,000
West/Southwest 0 - 200,000
Southeast 0 - 200,000
Southeast 0 - 200,000
Southeast 200,000 - 400,000
Southeast 0 - 200,000
Northeast 800,000 - 0
Northeast 0 - 200,000
View all Construction Projects

National Retail Real Estate Trends

Vacancy Trends
Supply and Demand
Inventory Change
Inventory Change

Metropolitan Retail Rankings (Q1 2013)

Based on 190 U.S. Markets
Value:
83. Mobile, AL 11.8%
84. Tampa-St. Petersburg, FL 11.8%
85. Hanford-Corcoran, CA 11.9%
86. Palm Beach, FL 11.9%
87. Peoria, IL 11.9%
88. Denver, CO 12.0%
89. Modesto, CA 12.0%
90. Provo-Orem, UT 12.0%
91. Tacoma, WA 12.0%
92. Fort Collins, CO 12.1%
93. Lincoln, NE 12.1%

Avg Annual Growth Rate (2013 - 2017)

Market Rent Vac Inv
Denver -0.5% 1,192 bps 0.5%
West Region 0.3% 937 bps 0.6%
United States 0.3% 1,077 bps 0.7%

Metro vs. Region -0.7% 256 bps -0.1%
Metro vs. US -0.8% 115 bps -0.3%