General Highlight: With the extra day for leap year you might think activity would go up! However, only the industrial & flex showed reasonable activity.
Industrial & Flex:
- The largest area flex lease was a 43,000 SF deal at the Campus at Longmont, on Pike Rd. Aspen Laser & Technology also leased 11,000 SF at the same campus.
- A Prospect East Research Park property on Midpoint signed up a 10,500 SF flex tenant in February.
- On the warehouse side, an industrial property on Zurich St. in Fort Collins landed the two largest leases at 13,500 and 10,400 SF.
- Kaiser Medical purchased a class A flex property at 4901 Big Thompson in Loveland to anchor their northern CO expansion move. The property sold for $4.8 million, or $158 PSF.
- Generally a slow month in the region for office properties. Of singular note was Kaiser Medical’s second excursion into northern CO, as they signed a 21,000 SF lease at the Harmony Corporate Center in Fort Collins. Kaiser is reportedly also looking for space in the Greeley region, which will establish them in three additional northern CO this year.
- Perhaps some post holiday blues in the retail sector should be normally anticipated. Both the Boulder and Fort Collins metro areas have experienced some negative absorption this year. Some retailers consolidate or close right after the holidays. Loveland countered this trend, however, with almost 50,000 SF absorbed in the two months of 2012.
- What do you do with aging retail malls? In our area, two sales of note might lead to an answer. The Twin Peaks Mall in Longmont, with 462,000 SF, sold for a price less than $20 PSF. Meanwhile, the Greeley Mall at 505,000 SF just auctioned off at $6.1 million, or a mere $12 PSF. Both sales reflect the massive investment expense to rehabilitate and restore the properties. Sales pricing almost reflects ground value only.
- At the other end of the spectrum, the Walgreens store in Loveland sold for $5.8 million, and $365 PSF, in an investor purchase. Triple net single tenant properties occupied by strong tenants such as Walgreens remain in high demand for investors seeking higher yields on their money than can be had in money market instruments. JP Morgan/Chase Bank bought a nice office/bank at 2950 Pearl St. in Boulder for $3 million, and $434 PSF.