- October 14, 2011
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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.