Retail Real estate remains strong
Denver Business Journal
Metro Denver’s retail real estate market should remain “fairly healthy,” with absorption of vacant space and higher rents, for the rest of 2008, according to a report released Wednesday by Marcus & Millichap Real Estate Investment Services Inc.
The report attributes the forecast to strong metro-area demographic trends and weakening supply-side pressure. Employers project an increase of 13,000 jobs, or a 1 percent gain, for the entire year.
“Investors with long-term strategies may find properties in the expanding northeast submarket, as well as new developments along planned FasTracks lines,” Adam Christofferson, regional manager for Marcus & Millichap’s Denver office, said in a statement.
Looking at retail real estate, the commercial real estate brokerage expects the following:
Asking rents to increase 1.6 percent to $17.44 per square foot on average.
A 0.8 percent uptick in effective rents to $15.46 per square foot on average. “Effective rent” is the rent actually paid by tenants to landlords.
Year-end vacancy rate of 8.1 percent.
A 2 percent jump in the inventory of retail space, with the addition of 2.5 million square feet.
Started in 1971, Marcus & Millichap is a commercial real estate brokerage firm that focuses exclusively on investments. The company, based in Encino, Calif., closed on $20.7 billion in deals in 2007.
Marcus & Millichap has Colorado offices in downtown Denver and Fort Collins.