Northern Colorado’s Office, Retail and Industrial Markets Strengthen
DENVER — CBRE Research recently released their latest reports analyzing Northern Colorado’s office, retail and industrial markets.
Here are the highlights from each sector as well as a link to each report:
1st Half of 2017 NoCo Office Highlights
- Activity in Northern Colorado’s office market was strong through the first half of 2017 with positive net absorption and increased rental rates.
- At the end of Q2 2017, 106,219 sq. ft. of office space was under construction.
- Office sales volume decreased 27.1% year-over-year, totaling $14.0 million in H1 2017.
- The industry sectors driving current market activity include agriculture, technology, research and development, government and healthcare.
1st Half of 2017 NoCo Retail Highlights
- Northern Colorado’s retail market experienced notable growth in key fundamentals such as net absorption and construction during H1 2017.
- Construction activity picked up the pace in H1 2017 with over 1.0 million sq. ft. under development – almost double the amount of space underway one year ago.
- Over 270,000 sq. ft. of retail space traded in H1 2017, totaling $70.3 million in transaction volume.
1st Half of 2017 NoCo Industrial Highlights
- Vacancy levels remained below 4.0% for the third consecutive quarter.
- Positive net absorption of 290,290 sq. ft. was recorded through the first six months of 2017.
- The overall direct average asking lease rate declined 5.2% year-over-year to $8.35 per sq. ft. triple net (NNN) in Q2 2017.
- At the end of Q2 2017, there was 353,985 sq. ft. of industrial space under construction and nearly 202,000 sq. ft. of new space was delivered this year.
- Industrial sales volume in Northern Colorado reached $126.6 million in H1 2017, surpassing annual sales posted in the last four out of five years.
Image of Downtown Fort Collins, courtesy of CBRE.