Sierra Trading Post Press Release : Sierra Trading Post – a multichannel retailer known for great deals on great brands – announces the grand opening of its new Fort Collins Technology Campus (FCTC) at 2002 Caribou Dr.
Archive for the ‘Commercial Realty’ Category
Industrial & Flex:
- The flex market is starting to have activity. On the leasing front, the Longmont market had two of the month’s larger leases in flex properties. Monarch Park Place had an 18,000 SF lease, and Kansas Ave. had a 10,000 SF lease.
- A Longmont portfolio sold for about $30 million split between a 150,000 SF Nelson Rd. property, a 92,000 SF Miller Rd. property and a 58,000 Pike Rd. property. Buyer was Fortress Credit, in an investment play.
- Greeley featured a warehouse sale of 17,000 SF on 2nd Ave. A crane business and building was sold to a Denver based trucking concern. Real estate allocation was $1.5 million.
- The largest lease transaction occurred in Frederick, on Miller Dr., off the highway 52 interchange with I-25. A Longmont based manufacturer, Premier Manufacturing, greatly expanded its footprint at the former Spartan Medical facility, a class A grade facility with about 45,000 SF.
- Longmont and Loveland metro areas had 16% vacancy levels, while all others were below 7%. With the pending sale of the former Agilent campus in Loveland to the ACE/NASA project, Loveland will drop to these lower levels,too.
- Office sales were robust due to one large portfolio transaction. A 19 building, 743,000 SF portfolio at Flatiron Business Park in Boulder was sold to Goff Capital Partners for about $70 million dollars. The properties had approximately 20% vacancy levels. Selling prices ranged from $70 PSF to $120 PSF. Some of these buildings were purely office, and some had flex and R&D building characteristics.
- An office property at Hover Business Park on 17th in Longmont, sold for $120 PSF, at $1.5 million. JP Morgan Chase Bank bought the property.
- Fort Collins leads all areas in absorption with almost 160,000 SF this year, while Greeley trails with a negative 50,000 SF.
- Vacancy levels across all metro areas hovered near 10% and were either stable or slightly falling this month.
- The region is enjoying sub 10% retail vacancy. The large developments have masked the weaker small retailer property. Longmont has only 5% vacant available space, and others range from 6%, to 11% on the upper end for Greeley.
- “Main Street” type sales included a former auto dealership on Lincoln Ave. in Loveland, where a 33,000 SF building sold for only $800,000. Another auto service related buyer purchased a 5000 SF facility in Frederick, on county road 13, for $650,000.
- The largest retail deal was the $7.4 million sale of the Walgreen’s store on 28th St. in Boulder. This investment property sold for about $400 PSF.
- Lease deals in October included the 5,000 SF Sears Home Appliance transaction in Superior Marketplace and the 4,000 SF “The Library” lease in Greeley’s University Center. Most others were less than 3,000 SF as smaller retailers started finding space in the market again.
- All markets are still taking 18-24 months to backfill, so the positive absorption is good news for landlords, though perhaps not at the velocity they would hope for.
Industrial & Flex:
- By the end of the third quarter, Industrial property is showing positive absorption of about 300,000 SF across the 60 million square feet in the region ( a 0.5% positive trend).
- The Boulder metro area and Longmont metro areas are the leaders in absorption and sales activity.
- Very few warehouse sales of substance in the area. A class C warehouse sold in Boulder at 5680 Valmont, for $800,000, or $47 PSF
- In the flex property type, a 55,000 SF flex property in the Gunbarrel Business Park of Boulder sold for $3.6 million, or $65 PSF. The sales price was a 31% discount from ask price.
- On the leasing front: Pollard Motors leased approximately 10,000 SF of warehouse space, and Crossfit Roots leased the same amount of flex space, both in Boulder.
- With the exception of the Loveland area, all regions featured sub 10% vacancy rates.
- The lead regions for absorption so far this year are Fort Collins, Loveland and Longmont, with 2% positive absorption each. Fort Collins led in total square feet, with approximately 165,000 feet out of 6.8 million SF absorbed.
- The largest “sale” was the foreclosure sale of 371 Centennial Pkwy in Louisville, to Bank of America. The 73,000 SF building was vacant at time of sale.
- FirstBank bought a 6000 SF class C multi-tenant office (Sunburst Professional Bldg) adjacent to its Loveland Eisenhower Blvd. location. It paid $104 PSF and picked up additional parking for its corner location.
- Boulder featured the two largest lease signings. OPX Biotechnologies leased 16,000 SF at the Flatiron West office park for $11.50 PSF, and Cardinal Peak signed at the same rate in Lafayette for 12,000 SF at 1380 Forest Park Cr.
- Backfill time for vacant space is averaging 20 – 24 months across the region.
- On the strength of several big-box developments, the region is enjoying sub 10% retail vacancy. The large developments have masked the weaker small retailer property.
- Sales of note include the Fort Collins Best Buy, which sold in portfolio with properties across the nation for a blended rate of $66 PSF. National Retail Properties in Florida purchased the building. A former Saab dealership property in Fort Collins was sold for $1.65 million, or $167 PSF. An Applebees restaurant long term lease property was sold in Fort Collins for $309 PSF, and a reported capitalization rate of 8%. It was the second sale of the property in the last 18 months.
- Lease deals in September included the 4,500 SF TCBY transaction for $16 PSF on Garfield St. in Loveland. Most others were less than 3,000 SF as smaller retailers started finding space in the market again.
- In all, 900,000 SF of retail space has absorbed this year, spurred by the new WalMart complex which opened earlier this year in Longmont.