- July 25, 2011
- 0 Comments
INDUSTRIAL / FLEX
- Available space rates are running about twice the rate of vacant space on the market. This rather high amount of availability shows that many companies are moving, consolidating, or planning on expansion at a new location, or shutdown at their current location. This rate has risen over the year from ~ 5% (500 basis point) spread, to 8% (800 basis point) spread now.
- Boulder leads the region in absorption, with over 220,000 SF this year. The recent Nite Ize warehouse lease of 83,000 SF is the notable new lease.
- Fort Collins has the lowest vacancy rate and shortest backfill time than the other metro areas ( 5% and 16 months respectively)
- Longmont shows positive absorption, but backfill time for vacant spaces is now a bit over 3 years.
- Greeley is the most volatile with a 1000 basis point spread between vacant space and available space (18% vs. 8%)
- Fort Collins and Loveland both have shown 1% positive absorption year to date. In gross square footage, Fort Collins has absorbed about 90,000 SF.
- Despite showing average rates 20-25% below its neighbors, lagging demand has dragged Greeley into a stagnant environment for office lease-up.
- Boulder had the largest office leases with Ball Aerospace at 25,000 SF, and Tendril’s 15,000 SF lease. However, overall Boulder has the largest negative absorption, with 115,000 SF of formerly leased space now put back on the market.
- Longmont, Fort Collins and Greeley have all shown positive absorption this year. The big-box deals have been done earlier, and recent activity has been 5,000 SF or below, such as the recent “Surroundings” lease in Fort Collins. Smaller square footage leases are now more common in the market.
- Loveland and Boulder are flat in retail absorption this year.