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.