With the continuing sluggishness in leasing activity in our tri-county area, one must surmise that firms just didn’t want to move in July. Of the approximately 90 lease deals tracked, the median size was less than 1500 SF. The largest lease, 23,000 SF to Stickley Furniture store in Superior reflects a retailer chasing new population and household formation growth in east Boulder county. NanoTech Engineering took 18,000 SF in downtown Loveland in a 2nd Ave. warehouse, and The Tea Spot rounded off significant leasing activity taking 14,000 SF of flex space on Cherry St. in Louisville.
Sales were also a bit sparse last month. Of the 50 or so sales, there were just a handful of any size. Builder Dohn Construction this time played investor with a 6% cap yield purchase of a $8 million occupied warehouse in Windsor, CO. The sale worked out to $200 PSF approx. on the Greendale Road property.
A sometime partner of Dohn Construction, Schuman Companies, purchased the Campion Industrial Park south of Loveland for $6 million. The Seventh Day Adventists sold the property to Schuman at a reported 8.63% cap rate, and the sale involved four warehouse properties in all.
Another investment sale involved the $4.75 million purchase of the Greeley Medical Center. The property which includes Nextdoor Urgent Care, has approximately 8,400 SF. Health provider NCMC bought the real estate, no doubt also acquiring the practices in that facility.
McWhinney Co.s bought the Collinsbrook flex building in SE Fort Collins for $4.55 million, or $124 PSF. Boulder also featured in major deals as a multi-tenant office building on Sterling Ave. sold at a 6.1% cap rate. The $4.25 mil sales price calculated to almost $200 PSF. The flex building houses a bicycle manufacturer.
Though sales might have been slow during the month, the yearly pricing trend continues to rise when calculated on a price per square foot basis through 2017 year end (see chart herein). Commercial real estate is becoming a more valuable commodity in aggregate in our market!
