Fitness and food driving metro Denver's retail real estate - Denver Business Journal (blog)

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Source: CBRE

A comparison of vacancy rates and lease rates for metro Denver's retail real estate market

The vacancy rate for metro Denver's retail submarket fell to its lowest level since 2008 in the third quarter, fueled by new and growing fitness and food businesses, according to CBRE Group Inc.'s^[1] latest Marketview report.

That direct vacancy rate stood at 7 percent in Q3, down 23 basis points from Q2 and 43 basis points from Q3 2012, the report shows.

Lease rates averaged $15.60 per square foot per year, down 11 cents from Q2 but up slightly year-over-year.

There were 380,477 square feet of positive retail space absorption (space rented versus vacated) in the third quarter, due largely to the openings of the Cabela's outdoor gear stores in Lone Tree and Thornton and a Target at Tamarac Square.

“Activity is definitely brisk,” said Jon Weisiger^[2] , senior vice president and retail specialist for CBRE. “The fitness industry is hot and the fast-causal [restaurant] industry continues to be strong.”

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> MORE: Metro Denver's industrial development heats up Q3^[3]

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The quarter also saw some large retail assets trade hands:

• TIAA-CREF^[4] bought the South Denver Marketplace, 8697 Park Meadows Center Drive, Lone Tree, for $69.5 million. The 260,810 square-foot retail center, just south of Park Meadows mall, is anchored by Best Buy, The Container Store^[5] , Nordstrom Rack, PetsMart and Colorado Ski & Golf. Weisiger represented the seller.

• Flatiron Marketplace, 245 E. Flatiron Crossing Drive (near Interlocken Boulevard and U.S. 36), Broomfield, sold for $25.3 million. Broomfield Assessor records show the buyer was FlatIron Marketplace 2013 LP.

• TPP 207 Brookhill LLC bought the 305,000 square-foot Towne Center at Brookhill, 7325 West 88th Ave, Westminster, for $14.8 million. The center in anchored by Home Depot, Burlington Coat Factory and Bed Bath and Beyond. New owner TriGate Property Partners II LP is a fund managed by TriGate Capital LLC of Dallas, according to JAH Realty which will help manage the property.

Dennis Huspeni covers real estate and retail for the Denver Business Journal and writes for the "Real Deals" blog. Phone: 303-803-9232.

References

1. ^{^} CBRE Group Inc.'s (www.bizjournals.com)


2. ^{^} Jon Weisiger (www.bizjournals.com)


3. ^{^} Metro Denver's industrial development heats up Q3 (www.bizjournals.com)


4. ^{^} TIAA-CREF (www.bizjournals.com)


5. ^{^} The Container Store (www.bizjournals.com)