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Flex Mkt Active, Office Sales Robust, & Vacancy Rates sub 10%.

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:


  • 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.

Retail:


  • 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.

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