Denver Has A Lot Of Retail Development On Deck In 2018, But Economy Showing Signs Of Cooling
The Denver metro area is still adding — and filling — shopping centers, warehouses and office buildings. But observers say the local economy showed some signs of cooling in 2017, and the commercial real estate market is showing signs of moderation to match. In a surprise to anyone reading national news stories about the grim future of their local shopping center amid the rise of e-commerce, the retail vacancy rate for metro Denver shrank in the waning months of 2017, landing at 6.4 percent after closing the third quarter of the year at 6.8 percent. That tightening came in a year during which asking lease rates rose, hitting $18.55 per square foot as of Dec. 31 after closing out 2016 at $17.77. The higher trend in Denver market rents follows a 2016 that ended with vacancy rates at a record low at 5.3 percent, according to international real estate brokerage CBRE. The relatively small amount of fluctuation was part of a trend toward moderation in Denver’s commercial real estate market following years of explosive expansion in the city and its suburbs, CBRE analysts said. That moderation was likely driven by a competitive local labor market that added 31,882 jobs on an average year-to-date basis through November — a 2 percent growth rate — and a gentle decline in the state’s net population growth in 2017, CBRE economists said. CBRE tracked all-industry job growth of 46,950 positions through November 2016, a 3 percent growth rate, year over year. Read more at The Denver Post.
