denver - co€¦ · the health of commercial real estate and the economy virtually hinges on the...

Denver - CO

PREPARED BY

Dustin Ferguson

Certified General Appraiser and Owner

Retail Market Report

RETAIL MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 8

Construction 10

Under Construction Properties 12

Sales 14

Sales Past 12 Months 16

Economy 18

Market Submarkets 21

Supply & Demand Trends 24

Rent & Vacancy 28

Sale Trends 32

Denver Retail

4/19/2020Copyrighted report licensed to Ferguson Appraisals, LLC - 491941.

OverviewDenver Retail

820 K (191 K) 4.6% 2.8%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

The coronavirus pandemic is having an unprecedentedimpact on the national and local economies. Joblessclaims due to shutdowns are skyrocketing as stay-at-home orders force non-essential businesses to shutteracross the state. The health of commercial real estateand the economy virtually hinges on the mitigation effortsto slow the spread of the virus.

The Colorado governor ordered all bars, restaurants,theaters, and fitness centers close through April 26, andan extension into May is certainly in the cards.Restaurants are still allowed to sell food for in-storepickup and delivery, and stores selling essential goodsare to remain open. With virtually all non-essentialbusinesses shuttered indefinitely, the fate of manysmaller retail tenants hangs in the balance as they relyon fiscal and monetary stimulus.

Denver's retail market was on solid footing entering2020, as vacancies were trending near historical lowseven with the growing market share of e-commerce andevolving consumer patterns. Store closures largelycontributed to absorption turning negative last year,including another Safeway shuttering, but well-locatedassets continued to perform well.

Trade area demographics were buttressing strong

consumer demand as the metro has experienced robustgrowth in population, employment, and buying power thiscycle. These factors, coupled with limited new supply,resulted in Denver outperforming nearly all major metrosin the change of buying power per SF since 2010.

Although leading retail indicators have been encouragingthis cycle, development activity has been rather minimal.Denver's retail stock has only grown by about 5.5%cumulatively since 2010—near the national averagedespite far superior demographic trends. But developersappear to have made the right call to step on the brakesin recent quarters as the national economy, as well asDenver, encounter the growing likelihood of a recession.

Until 2019, retail rents in Denver were growing by about5% annually on average since 2016. Following thenational trend, rent growth has noticeably cooled fromgrowth rates observed earlier in the cycle. With non-essential retail virtually shut down throughout the state,rents will likely face tremendous downward pressure inthe near term.

Investment activity is expected to slow to a crawl in thecoming quarters due to the financial uncertainty of theeconomy coming to a hard stop.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$33.453.3%15,529,847Malls 3.8% (21,227) 0 50,897

$24.907.4%15,833,289Power Center 8.1% 45,767 0 15,240

$21.316.5%49,899,810Neighborhood Center 7.9% (10,126) 0 137,762

$20.745.5%7,979,105Strip Center 7.1% (1,955) 0 51,464

$22.192.7%64,563,684General Retail 4.2% (26,907) 19,412 793,847

$21.621.5%1,321,183Other 1.8% 0 0 3,000

$23.234.6%155,126,918Market 5.9% (14,448) 19,412 1,052,210

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

4.9%6.3%0.4%Vacancy Change (YOY) 8.8% 2009 Q3 3.9% 2018 Q4

753,9161,654,021(191 K)Net Absorption SF 4,871,249 2007 Q2 (189,500) 2020 Q1

1,317,3011,748,893820 KDeliveries SF 5,123,643 2007 Q1 651,559 2010 Q4

1.0%2.0%2.8%Rent Growth 5.9% 2014 Q4 -3.2% 2009 Q4

N/A$977.6M$1.4 BSales Volume $1.7B 2018 Q2 $335.4M 2010 Q3


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LeasingDenver Retail

Vacancies that peaked at 9% during the downturn werenear historical lows entering 2020. However, thecoronavirus shock to the retail market has resulted in theshuttering of all non-essential stores in the state untilApril 26, and possibly longer. Lost revenue in the comingmonths could force many tenants to permanently closetheir doors, unless both tenants, landlords, and lenderscan get creative during this crisis.

With retail inventory nearly at full capacity at the start of2019, the vacancy rate expanded slightly during the yearfollowing a string of store closures. These closings werelargely a result of unprofitable national retailers that failedto evolve in the digital age rather than a perceivedweakness in Denver's retail market.

Sears was behind most of 2019's negative absorption.The 125-year-old retailer filed for bankruptcy at the endof 2019 and closed two stores in early 2019: a 150,000SF location in Lakewood, and a 130,000 SF Sears at theStreets at SouthGlenn. Both spaces were still on themarket at the start of 20Q1.

Safeway continued to plague the market after years ofstore closures throughout the state of Colorado. Thegrocery chain shuttered another big box location in2019—54,000 SF at Westminster Plaza in Westminster.

A Kmart and several Toys "R" Us locations have alsoclosed in recent years.

The top leases and move-ins of 2019 reflect the ongoingshift in consumer trends and where tenant demand is thestrongest. Four of the top seven move-ins belonged tofitness centers: Vasa Fitness (56,000 SF), Chuze Fitness(50,000 SF & 40,000 SF), and Prestige Fitness (38,000

SF).

As malls attempt to generate more foot traffic, they havefocused on experiential retail to draw consumers in.Urban Air, a trampoline park for children, isrepresentative of this emerging trend. In early 2019, thecompany opened a 36,000 SF location at Towne Centerat Brookhill in Westminster. By the summer of 2020,Urban Air will open a 50,000 SF location at theCornerstar shopping center in Aurora.

Limited new retail developments, coupled with a growingand highly educated, high-income population with alarge concentration of “big spenders” (the demographicaged 35–54 years), should continue to provide the retailsector with a much needed lift in the face of e-commerce driven headwinds.

Vacancies are concentrated in bad retail centers andhave not spread into the average retail center. Moreover,a concerted movement of households, wealth, andemployment to downtown submarkets have producedroutinely above-average rent gains in the Downtown andCherry Creek Submarkets, and vacancies in these areashave been razor thin for years. Centers and mixed-usedevelopments with retail components in these rapidlygrowing neighborhoods are thriving.

In other cases, retail in bad trade areas has often beenremoved from inventory or is undergoing renovations andin some cases, repurposing. With stronger demanddrivers to weather the new age of retail, and supply thathas only mirrored the national average despite superiordemographic and economic trends, the Denver retailmarket has enjoyed an atypical amount of resilience tothe effects of e-commerce.


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NET ABSORPTION, NET DELIVERIES & VACANCY

VACANCY RATE


Page 4


AVAILABILITY RATE


Page 5


12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Building SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absoption SF

Aurora Ret 78,464 0 0 0 0 0 78,464The Point at Nine Mile Station

West Ret 126,758 44,692 0 0 0 0 65,652Westland Plaza

Southwest Ret 194,620 39,040 0 0 0 0 57,838Bowles Crossing

Aurora Ret 72,172 0 45,794 0 0 0 45,794Aurora City Place

Northwest Ret 140,000 12,000 43,560 0 0 0 41,977Candelas Marketplace

Central Ret 95,763 7,754 0 0 0 0 37,864South Lowry Marketplace

Central Ret 34,500 0 0 0 0 0 34,5009th & Colorado

Southwest Ret 40,000 5,920 1,820 0 0 0 34,080River Point at Sheridan (1)

Northwest Ret 40,000 0 0 0 0 0 31,648Downtown Westminster

Southeast Ret 64,736 0 0 0 0 0 28,432FlatAcres MarketCenter / Parker…

Southeast Outlying Ret 26,877 0 26,877 0 0 0 26,877Encore Castle Rock

Northwest Ret 25,091 0 0 0 0 0 25,091Northglenn Marketplace (1)

Central Ret 45,800 21,638 24,162 0 0 0 24,162Village On The Park

Aurora Ret 61,737 23,649 23,287 0 0 0 23,287The Gardens on Havana

Southwest Ret 173,900 0 0 0 0 0 22,458River Point at Sheridan (2)

Southwest Ret 22,000 0 0 0 0 0 22,000The Belleview Connection

Northwest Ret 90,916 12,326 0 0 0 0 21,919Northglenn Marketplace (2)

1,333,334 167,019 165,500 0 0 0 622,043Subtotal Primary Competitors

153,794,824 7,006,298 (353,062) (14,448) 0 0 (812,966)Remaining Denver Market

155,128,158 7,173,317 (187,562) (14,448) 0 0 (190,923)Total Denver Market


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TOP RETAIL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

Streets at SouthGlenn South 131,201 Spirit Halloween Supersto… Phoenix Commercial… -Q3 19

University Towne Center South 56,378 - - SRS Real Estate Partn…Q2 19

Westminster Plaza Northwest 56,127 VASA Fitness David, Hicks & Lam… Crosbie Real Estate Gr…Q1 20

Hoffman Heights Shopping Center Aurora 48,015 - Cushman & Wakefield -Q3 19

Centennial Promenade South 44,300 Total Wine & More Western Retail Advi… -Q3 19

Westminster City Center Marketplace Northwest 42,900 Golf Galaxy - Brixmor Property Grou…Q1 20

Smoky Hill Town Center Southeast 40,000 Chuze Fitness - Cushman & WakefieldQ3 19

Aurora City Center * Aurora 39,421 24 Hour Fitness - DePaul Real Estate Ad…Q4 19

South Lowry Marketplace Central 37,864 Prestige Fitness David, Hicks & Lam… AXIO Commercial Real…Q2 19

Seven Hills Shopping Center * Aurora 35,974 Movie Tavern - -Q4 19

Center Tech Plaza Aurora 34,065 Aurora Community School - DePaul Real Estate Ad…Q3 19

Tower Commons Northeast 30,000 - - Legend PartnersQ3 19

Sunrise Village Shopping Center * Northeast 29,727 Arc Thrift Stores of Colorado - Emerald Real Estate G…Q1 20

Aurora City Center Aurora 28,287 Empower High School Cresa DePaul Real Estate Ad…Q2 19

Towne Center at Brookhill Northwest 25,467 - - SullivanHayes BrokerageQ1 20

Northglenn Marketplace Northwest 25,091 - - -Q2 19

Northglenn Marketplace Northwest 25,091 Bed Bath & Beyond - SullivanHayes BrokerageQ2 19

Washington Plaza Northeast 25,000 Goodwill - TEL ManagementQ4 19

Southwest Commons * Southwest 24,594 Office Depot David, Hicks & Lam… Crosbie Real Estate Gr…Q2 19

Arapahoe Marketplace South 23,876 Molly's Spirits - CBREQ2 19

2930-2950 S Havana St Central 23,589 Lyft BRC Real Estate Richard Borga;Shortlin…Q2 19

The Gardens on Havana Aurora 23,287 - - AmCap Properties, Inc.Q3 19

Larkridge Northeast 22,814 Bassett Home Furnishings - Jordon Perlmutter & Co.Q3 19

Northglenn Marketplace Northwest 22,056 - - SullivanHayes BrokerageQ2 19

Jefferson Marketplace Southwest 20,430 - - Newmark Knight FrankQ4 19

Parker Hilltop Town Square Southeast 20,388 - - Newmark Knight FrankQ4 19

Abilene Market Aurora 20,000 - - SullivanHayes BrokerageQ1 20

Salem Square Aurora 19,995 - - Panorama Commercial…Q2 19

150 W 53rd St Northwest Denver 19,000 South Platte Trading Co - -Q2 19

Aurora City Square Aurora 18,884 Innovative Services - SRS Real Estate Partn…Q1 20

Chambers Place Shopping Centre Northeast 16,000 - - CBREQ3 19

Huron Plaza Northwest 15,932 Denver Bouldering Club - Kamen RealtyQ3 19

Mission Plaza Aurora 15,636 - - SullivanHayes BrokerageQ1 20

Pine Tree West Plaza Southeast 15,273 Monarch Investments SRS Real Estate Pa… Trevey Commercial Re…Q3 19

Promenade at Castle Rock Southeast Outlying 15,000 - - David, Hicks & Lampert…Q4 19

NEC E 128th Ave Northeast 14,240 PetSuites - -Q2 19

Promenade at Castle Rock Southeast Outlying 14,000 - - David, Hicks & Lampert…Q4 19

1298 W Alameda Ave Upper South Central 13,750 Altus Traffic - David, Hicks & Lampert…Q2 19

8770 E Arapahoe Rd South 13,171 The Lofe @ Solera Salon - -Q1 20

Brookhill Village Northwest 12,500 Bad Axe Throwing Springboard Corpor… Cushman & WakefieldQ3 19

*Renewal


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RentDenver Retail

Retail rents posted average annual gains of nearly 5%from 2013-2018, one of the best performances out ofthe 50 largest metros nationally. Mirroring the nationaltrend, rent growth moderated further in 2019. Annualgains clocked in below 1% for the first time since 2011.Given current economic conditions, rent growth isincreasingly likely to continue slowing.

With new development controlled, big box space beingtaken off the market (sometimes via redevelopment),vacancies remain historically tight entering 2020. In thisenvironment, landlords should theoretically be able topush rents, especially when well-located space hits the

market.

Still, the top performers this cycle have been thesubmarkets with the strongest locations anddemographics. Where Metro Denver's rents havesurpassed last cycle's peak by 25% (one of the bestperformances nationally), rents in Downtown Denverhave eclipsed the peak of the last cycle by 50%, alsoamong the best out of more than 2,000 retail submarketsin the national index. Cherry Creek/Colorado Blvd andthe South submarkets have also produced robust growthas rents are 40% and 32% above the last cycle's highs,respectively.

MARKET RENT GROWTH (YOY)


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RentDenver Retail

MARKET RENT PER SQUARE FOOT


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ConstructionDenver Retail

The Colorado Governor's stay-at-home order considersjobs in the construction industry as “essential or critical”,which would allow developers to move forward withprojects if they choose. Deteriorating economicconditions could keep upcoming groundbreakings onhold, and projects slated to deliver in 2020 must grapplewith the uncertainty of demand. Given the remarkablefluidity of the coronavirus outbreak, it is not out of therealm of possibility that construction jobs could eventuallylose their essential business designation.

A moderation in construction levels could not have comeat a better time due to the sudden stop of all non-essential retail activity. With many current projects likelyon hold for the near term, supply pressure could have anegligible impact on fundamentals.

Many developments in past years have been built forinternet-resistant tenants, including fitness centers,entertainment centers, and car dealerships. Annualdeliveries have been well below the historical averagethis cycle, and perhaps after record retail completionsfrom 2005–08, a respite was in store. This may havebeen a blessing in disguise for Denver's retailfundamentals as e-commerce had an outsized impacton consumer trends during the 2010s.

With the completion of the 330,000-SF Denver Premium

Outlets in Thornton at end of 2018, no further mall-styledevelopments were being pursued entering 2020. DenverPremium Outlets hosts an array of high profile tenants,including Kate Spade, Hugo Boss, and a Nike factorystore.

Developers are starting to blend in some significant retailcomponents to Downtown Denver mixed-usedevelopments. Continuum Partners is building almost90,000 SF of retail at its Market Station project, just afew blocks away from Union Station. Construction isexpected to wrap up in early 2020. Market Station willalso include 225 market-rate apartments and 95,000 SFof office space.

A similar project is slated to complete in 2021: A group ofdevelopers, led by The Rockies organization, is including75,000 SF of retail in a mixed-use development acrossthe street from Coors Field. In addition to retail, there willbe office and residential components, along with a hotel.

In Westminster, the city plans to redevelop theWestminster Mall site into a 108-acre multi-use towncenter, which will include a significant retail component.Multifamily developments with sizable retail componentsare now underway, and pure retail components are likelyto follow.

DELIVERIES & DEMOLITIONS


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ConstructionDenver Retail

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All Existing{0} 000 Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 Northeast 15 275 18,36156.7% 8 13,185156 5

2 Downtown 3 206 68,74716.1% 10 14,84333 1

3 Central 7 131 18,70791.5% 5 8,741120 4

4 South 5 106 21,261100% 1 19,395106 3

5 Southeast Outlying 6 93 15,42495.6% 4 11,66188 6

6 Northwest 9 83 9,27342.9% 9 16,57036 7

7 Southeast 12 72 6,01077.5% 7 17,80956 9

8 Aurora 2 46 23,125100% 1 16,69746 2

9 West 5 24 4,74080.9% 6 9,92019 10

10 Southwest 2 15 7,620100% 1 21,58615 8

All Other 0 - -- 11,604-

Totals 66 1,052 15,94364.3% 13,343676


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Under Construction PropertiesDenver Retail

66 1,052,210 0.7% 64.3%Properties Square Feet Percent of Inventory Preleased

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jun 20181601 Market St

88,500 1 Aug 2020Continuum Partners LLC

Continuum Partners LLC1

Oct 20181901 Wazee St

McGregor Square Retail75,500 2 Jan 2021

Hensel Phelps

McGregor Square2

Aug 2019Nec of Chambers Rd & 1…

70,000 1 May 2020Thompson Thrift

Thompson Thrift3

Mar 201918620 Green Valley Ranc…

65,000 1 May 2020-

Honig and Honig4

May 20193106 W County Line Rd

Alpine Buick49,996 1 Jun 2020

-

-5

Jun 20189th Ave

AMC44,000 - May 2020

Continuum Partners LLC

Continuum Partners LLC6

Sep 201914531 E Alameda Ave

Parkside@City Centre43,250 1 Jun 2020

Northstar Commercial Partners

-7


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Under Construction PropertiesDenver Retail

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Apr 20191251-1261 Glenarm Pl

42,240 - Jun 2020-

-8

May 20193106 W County Line Rd

Alpine Buick GMC41,000 1 May 2020

-

Alpine Buick-Pontiac-Gmc9

Aug 201913750 Grant St

38,000 1 Sep 2020-

-10

Dec 2018Castlegate Dr

37,897 1 May 2020Forum Real Estate Group

Town of Castle Rock11

Mar 2019Westminster Blvd And 92nd

Central Square34,500 1 Dec 2020

Sherman Associates, Inc.

Sherman Associates, Inc.12

May 20192896 Fairfax St

27,000 1 Jun 2020-

HM Capital13

Dec 2019Quebec St & Lowry Blvd

25,000 1 Dec 2020Confluent Development

Kelmore Development Corporation14

Jan 2020Wilcox St & First St

Festival Park Commons…22,000 1 Feb 2021

Castle Brae Development LLC

Confluence Companies15

Jan 2020Rolling Hills Plz

14,000 1 Aug 2020-

-16

Feb 202022986 E Smoky Hill Rd

Smoky Hill Crossing - Pa…13,200 1 Feb 2021

-

Scott W & Wendy B Baldensperger17

Jun 2019825 S Kuner Rd

12,862 1 Oct 2020-

Lamour18

Mar 20192000 S Colorado Blvd

Junction Food & Drink12,200 - May 2020

Lincoln Property Company

Lincoln Property Company19

Jun 20193599 Central Park Blvd

A Line Square12,000 1 May 2020

D H Friedman Properties Llc

-20

Jul 201956th Ave & Central Park B

Bldg F- Shops at Beeler…12,000 1 Jul 2020

Evergreen Development Co.

Andres and Catrina Pazo21

Jan 20194850 E 60th Ave

60TH & Vasquez11,956 - May 2020

-

Landon Enterprises22

Sep 201919585 Hess Rd

Country Meadows Squar…11,520 1 May 2020

-

Skott Katskee23

Sep 20198850 W 116th Cir

10,604 1 May 2020-

-24

Jan 20209750 Washington St

10,192 1 Aug 2020Trevey Commercial Real Estate

-25

Sep 2019Crystal Valley Pky

10,144 1 May 2020-

-26

Mar 2020Parker Rd & Stroh Rd

Retail Pad10,000 1 Jul 2020

ServiceStar Development Compa…

ServiceStar Development Compa…27

Jun 2018Wadsworth & Byers

Wadsworth & Byers10,000 1 Oct 2020

-

HealthONE28


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SalesDenver Retail

We fully expect investment activity to come to a standstillin the near term as the financial impact of thecoronavirus is assessed. Before the outbreak, severalmajor deals took place, driving sales volume that isgenerally on par with first-quarter figures from the pastseveral years.

After a somewhat quiet first half, investment activitypicked up in the second half of 2019. More than $1.2billion worth of retail assets traded, falling about $200million short of 2018's volume. Based on CoStar's PricingTrends, values continued to climb, albeit at a slowerpace than in past years. Cap rates tightened slightly, buthave generally remained in the mid- to high-6% rangethat has become the norm in the market.

The Kroenke Group dominated headlines in the finalquarter of 2019. The firm, owned by billionaire real estatemogul Stan Kroenke, acquired two shopping centerswhich turned out to be the biggest deals of the year.

In December 2019, Kroenke acquired the 218,000 SFMeadows Marketplace from Dallas-based InvescoAdvisers for nearly $58 million ($266/SF). The Lone Treeasset delivered in 1996 and was anchored by HomeDepot.

One month earlier, the billionaire investor paid just under$49 million ($457/SF) for the 107,000 SF BelleviewPromenade in Greenwood Village. Tenants included

Sotheby's International, Ocean Prime, and Bar Louie.

Like in many metros, fitness centers are fueling some ofthe biggest deals of the year. In September, Minnesota-based Life Time Inc. acquired a 110,000 SF health clubfrom Millice Group for $30 million ($273/SF). The buildingreceived $7 million in capital improvements in 2017,including a renovated lobby and cafe. The buyer willcontinue to operate the property as a health club.

One of the largest trades of 2019 was a California-based buyer's acquisition of a 45,500 SF fitness center inHighlands Ranch for $22.8 million ($500/SF). ACRECorporation, also based in California, sold the asset,which was fully leased by 24-Hour Fitness through 2035with rent escalations every five years, beginning in 2025.The reported cap rate based on current income andexpenses was around 7.4%.

Prior to 2013, 10% of Metro Denver's suburban retailstock was within a mile of a light rail station. By 2020,more than 30% of the retail stock will be within a mile ofa light rail station, an increase of 23 million SF. Thisassumes completion of the now under construction NLine and the southeast light rail extensions by 2020, inaddition to the W, A, R, B, and G Line extensions whichopened from 2013-19. For investors of existing retail, orthose pondering a redevelopment, there is a growingroster of suburban opportunities to consider.


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SalesDenver Retail

SALES VOLUME & MARKET SALE PRICE PER SF


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Sales Past 12 MonthsDenver Retail

621 6.2% $244 3.6%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $110,000 $2,777,151 $1,650,000 $30,000,000

Price Per SF $4.01 $244 $289 $3,683

Cap Rate 4.0% 6.2% 6.2% 9.9%

Time Since Sale in Months 0.2 6.1 6.0 11.9

Property Attributes Low Average Median High

Building SF 338 11,440 4,800 147,000

Stories 1 1 1 10

Typical Floor SF 338 10,154 4,455 147,000

Vacancy Rate At Sale 0% 3.6% 0% 100%

Year Built 1868 1975 1981 2020

Star Rating 2.5


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Sales Past 12 MonthsDenver Retail

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 500 S Cherry St1978 110,000 0% $30,000,000 $2739/9/2019 -

-2 Bldg C-E2000 55,554 12.6% $27,580,614 $496

8000 E Belleview Ave11/25/2019 -

-3 Meadows Marketplace1996 107,099 0% $25,962,873 $242

8477 S Yosemite St12/5/2019 -

-4 24 Hour Fitness2010 45,500 0% $22,750,000 $500

6830 E County Line Rd7/10/2019 7.4%

-5 Town Center Highlands…1996 55,807 0% $17,096,844 $306

9255 S Broadway6/28/2019 -

-6 Defy Denver1986 104,400 57.5% $16,444,900 $158

1400 S Abilene St9/25/2019 -

-7 Safeway2000 51,609 0% $16,383,490 $317

560 Corona St1/31/2020 5.1%

-8 Union Denver2017 68,000 0% $16,368,075 $241

1777 Wewatta St4/29/2019 -

-9 Alamo Drafthouse Cinema2018 35,512 0% $16,184,211 $456

4255 W Colfax Ave9/30/2019 7.4%

-10 8457-8467 S Yosemite St1997 72,481 0% $15,964,643 $22012/5/2019 -

-11 11051 S Parker Rd1994 61,810 0% $14,810,000 $2406/28/2019 -

-12 Shops B2002 104,725 0% $14,800,761 $283

40-100 S Abilene St2/14/2020 -

-13 Safeway1998 55,650 0% $14,750,000 $265

9229 E Lincoln Ave12/23/2019 5.2%

-14 1200 S Buckley Rd2003 57,560 0% $14,140,000 $2466/28/2019 -

-7 Safeway2000 51,609 0% $13,368,900 $259

560 Corona St6/28/2019 -

-14 1200 S Buckley Rd2003 57,560 0% $13,250,000 $2309/12/2019 -

-13 Safeway1998 55,650 0% $13,010,000 $234

9229 E Lincoln Ave6/28/2019 -

-15 King Soopers2013 77,314 0% $12,970,801 $168

5070 S Federal Blvd4/24/2019 -

-16 Conifer Marketplace1984 86,658 0% $12,250,000 $141

10853 Hwy 2851/16/2020 8.9%

-5 Town Center Highlands…1996 55,807 0% $12,000,000 $215

9255 S Broadway11/7/2019 5.2%


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EconomyDenver Retail

The coronavirus pandemic is having an unprecedentedimpact on the national and local economies. Joblessclaims due to shutdowns are skyrocketing as stay-at-home orders force non-essential businesses to shutteracross the state. The health of commercial real estateand the economy virtually hinges on the mitigation effortsto slow the spread of the virus.

The fiscal and monetary stimulus packages were quicklypassed through Congress and are expected to provide abridge for many people and businesses impacted by thecrisis, at least in the short-term. The Governor's stay-at-home orders were extended through April 26, with thepossibility of further extensions.

The last time oil prices fell this low in 2016, Denver'seconomy felt the impact. An oil price war between SaudiArabia and Russia caused prices to plummet to $20 abarrel in March, an 18-year low. Oil prices remain weakand demand has fallen off a cliff due to the coronavirusshock. In early April, the U.S. and Mexico agreed to cutoil production along with OPEC+, which should helpreduce volatility to a degree. We will be updating ouranalysis frequently as more information becomesavailable. The current report largely reflects theenvironment before the pandemic.

Under the Governor's order, residents may only leavetheir homes for matters concerning the health and safetyof the household, or for jobs deemed as “critical”.

Critical businesses to remain open include not onlygrocery stores and restaurants with to-go options, butalso marijuana dispensaries and, in Denver, breweries.

With a job location quotient near the national average forretail and leisure and hospitality, Denver is not overlyexposed to the hardest-hit sectors. Nevertheless,Denver International Airport is arguably the primaryeconomic driver for the region, generating more than $33billion for the state in a 5-year span.

Flights have been reduced by up to 90% by severalairlines. Although Denver will not be more affected thanmost major metros in this regard, it does rely heavily onin-migration to fuel its labor force growth and overalleconomy, metrics which are expected to decline sharplyin the coming months.

Denver's emergence as a bona fide technology marketthis cycle could help insulate it from the impact ofwidespread shutdowns. Tech employers typically allow

the flexibility of telecommuting, and many office-usingemployers have the capacity to facilitate a work-from-home transition. Office-using jobs in Denver have grownabove the national average the past five years at about3% annually.

Government employment has also been consistent, if notpedestrian, in terms of employment growth in the statecapital. The public sector has often been a stabilizingforce during past economic downturns. The governmentand professional and business services sectors were theonly nonfarm job sectors in Denver to grow at or abovetheir five-year average in 2019.

Although education and health services job gains werebelow their five-year average in 2019, it ranked as thethird-strongest employment growth sector behindprofessional and business services and government.Healthcare is seeing a major investment in the $1.3billion VA hospital in Aurora, the Denver HealthAdministration's new headquarters in South Midtown,and Catalyst's 300,000-SF digital health facility in theRiNo neighborhood.

On the downside, oil and gas companies clustered inDenver's CBD are now faced with volatile oil prices thatplunged to 18-year lows in March. The last time oilprices were this weak in 2016, layoffs were widespreadthroughout the industry. This time, energy companies arefaced with dual threats: oversupply due to Saudi Arabiaand Russia posturing, and a precipitous fall in demandas the movement of people and goods becomesincreasingly restricted due to the coronavirus.

Even though Denver's overall employment growthshowed signs of a slowdown last year along with thenational index, it added tech jobs at an acceleratingpace. Employment in Professional, Scientific & TechnicalServices grew by more than 7% annually in 2019, one ofthe best growth rates in the country. Corporateexpansions and relocations by tech companies such asAmazon, Slack, and Conga drove employment gains andepitomize the trend of West Coast firms choosing toexpand in Denver for its robust workforce, quality of life,and cost of doing business.

Denver has been frequently lauded as a hot destinationfor young, educated job seekers throughout this cycle.Headwinds to this trend could come from housing costs,which are dramatically higher today for both renters andprospective owners. While home prices continue to climbinto the stratosphere (albeit at a slower rate than the


Page 18


peak years of this cycle), apartment rent growth hasmoderated alongside elevated levels of construction,which may provide a relief valve for those consideringthe metro for its otherwise robust employment prospects.

Along with a young, highly educated, and growing laborforce, the FasTracks transit expansion is another sellingpoint. Transit-oriented development is taking holdthrough the metro as additional lines connect downtownto North Denver, Aurora, Southeast Denver, and theDenver International Airport.

Geographic isolation remains an economic liability insome respects. The geographic separation from largebusiness and financial centers makes locating acorporate headquarters here difficult for companies thatbenefit from proximity to suppliers, competitors,financiers, and customers, although firms that draw onDenver's natural resources and brainpower have thrived.As a result, the metro has had to rely on its own brand ofspecialization in high-value-add industries likeengineering, energy, communications, and high tech todrive growth.

DENVER EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

-0.41%-0.12%1.04%1.65%-0.83%1.85%0.672Manufacturing

0.02%0.22%1.17%2.09%-0.60%1.24%1.0280Trade, Transportation and Utilities

-0.02%0.25%0.73%1.38%-0.93%-1.47%0.9137 Retail Trade

0.31%0.54%1.29%2.21%0.87%0.91%1.3115Financial Activities

0.50%0.93%0.11%1.65%1.27%2.83%0.9207Government

0.13%0.62%2.90%4.83%0.96%2.34%1.3113Natural Resources, Mining and Construction

0.76%1.03%2.15%3.40%2.61%3.54%0.8197Education and Health Services

0.59%1.05%2.59%3.49%1.25%3.07%1.3286Professional and Business Services

0.29%-0.07%0.56%1.56%1.22%2.03%1.752Information

0.87%1.03%2.26%3.04%-1.86%-1.39%1.0170Leisure and Hospitality

-0.03%0.40%1.03%2.02%0.57%0.45%1.059Other Services

Total Employment 1,551 1.0 1.85% 0.54% 2.68% 1.52% 0.70% 0.38%

Source: Oxford Economics

LQ = Location Quotient


Page 19



YEAR OVER YEAR JOB GROWTH

DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 329,297,1882,984,122 1.1% 0.5% 1.6% 0.7% 1.1% 0.5%

Households 122,102,8671,149,585 1.0% 0.4% 1.5% 0.7% 1.0% 0.4%

Median Household Income $64,696$83,206 3.4% 3.4% 3.5% 2.6% 2.8% 2.9%

Labor Force 164,221,7971,683,381 0.7% 0.8% 1.7% 0.7% 0.6% 0.4%

Unemployment 3.7%2.6% -0.8% -0.1% -0.6% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


Page 20

SubmarketsDenver Retail

DENVER SUBMARKETS


Page 21


SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 Aurora 12,138 7.8% 7 2 46 0.4% 8727 5 106 0.9% 4

2 Central 21,144 13.6% 3 7 131 0.6% 32,419 6 107 0.5% 3

3 Colorado Bl/Cherry Ck 5,077 3.3% 9 0 - - -324 1 3 0% 10

4 Downtown 3,488 2.2% 11 3 206 5.9% 2235 0 0 0% -

5 Northeast 15,215 9.8% 6 15 275 1.8% 11,154 13 82 0.5% 6

6 Northwest 24,755 16.0% 1 9 83 0.3% 61,494 14 147 0.6% 1

7 South 18,290 11.8% 4 5 106 0.6% 4943 7 54 0.3% 8

8 Southeast 15,387 9.9% 5 12 72 0.5% 7864 15 124 0.8% 2

9 Southeast Outlying 3,837 2.5% 10 6 93 2.4% 5329 4 38 1.0% 9

10 Southwest 10,361 6.7% 8 2 15 0.1% 10480 8 93 0.9% 5

11 Southwest Outlying 1,259 0.8% 12 0 - - -222 0 0 0% -

12 West 24,105 15.5% 2 5 24 0.1% 92,430 7 66 0.3% 7

SUBMARKET RENT

Growth

Market Rent

Per SFSubmarketNo.

12 Month Market Rent QTD Annualized Market Rent

RankRank GrowthRank

1 Aurora 4.6%12 2.8% 5$16.91 5

2 Central 4.3%5 4.0% 1$23.42 8

3 Colorado Bl/Cherry Ck 5.8%1 2.9% 3$43.75 2

4 Downtown 6.5%2 2.8% 4$32.84 1

5 Northeast 4.3%6 2.7% 6$21.21 7

6 Northwest 4.5%7 2.5% 8$20.98 6

7 South 5.1%3 2.3% 11$28.78 3

8 Southeast 4.0%4 2.5% 9$25.30 11

9 Southeast Outlying 4.7%10 2.7% 7$19.81 4

10 Southwest 3.7%8 2.4% 10$20.62 12

11 Southwest Outlying 4.2%11 2.0% 12$16.98 9

12 West 4.2%9 3.1% 2$20.52 10


Page 22

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=CMA&redirUrl=%2F%23%2Fsearch%2Fdetail%2Fsubmarket%2Ftype%2F0%2Fproperty%2F6%2Fgeography%2F4733%3Fnested%3Dfalse

























SUBMARKET VACANCY & NET ABSORPTION

12 Month Absorption

Rank Construc. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Aurora 565,447 4.7% 1.285,435 0.7% 29

2 Central 730,676 3.5% -(123,730) -0.6% 113

3 Colorado Bl/Cherry Ck 234,687 4.6% -(102,953) -2.0% 108

4 Downtown 124,236 3.6% -(90,252) -2.6% 94

5 Northeast 782,230 5.1% 0.6117,145 0.8% 110

6 Northwest 1,464,536 5.9% -(210,058) -0.8% 1212

7 South 821,451 4.5% -(48,006) -0.3% 87

8 Southeast 616,172 4.0% 1.650,413 0.3% 45

9 Southeast Outlying 92,616 2.4% 0.941,605 1.1% 51

10 Southwest 422,980 4.1% 0.984,813 0.8% 36

11 Southwest Outlying 34,970 2.8% -6,467 0.5% 62

12 West 1,283,316 5.3% -(1,802) 0% 711


Page 23













Supply & Demand TrendsDenver Retail

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 1,158,255 0.7% 0.6%997,571 1.2159,985,991

2023 1,104,663 0.7% 0.7%1,086,878 1.0158,827,736

2022 1,069,894 0.7% 0.6%939,456 1.1157,723,073

2021 881,207 0.6% 0.5%716,722 1.2156,653,179

2020 846,815 0.5% 0.1%91,362 9.3155,771,972

YTD 201,761 0.1% -0.1%(202,010) -155,126,918

2019 622,040 0.4% -0.1%(95,206) -154,925,157

2018 1,326,933 0.9% 1.4%2,085,592 0.6154,303,117

2017 1,515,657 1.0% 1.1%1,703,920 0.9152,976,184

2016 807,453 0.5% 1.0%1,519,477 0.5151,460,527

2015 820,851 0.5% 0.9%1,320,923 0.6150,653,074

2014 412,277 0.3% 1.0%1,429,283 0.3149,832,223

2013 1,024,330 0.7% 1.4%2,043,190 0.5149,419,946

2012 366,527 0.2% 0.7%1,106,534 0.3148,395,616

2011 833,150 0.6% 1.1%1,605,385 0.5148,029,089

2010 632,724 0.4% 1.0%1,432,017 0.4147,195,939

2009 2,334,569 1.6% 0.9%1,378,032 1.7146,563,215

2008 2,541,365 1.8% 1.2%1,757,367 1.4144,228,646

MALLS SUPPLY & DEMAND



2024 37,359 0.2% 0%4,535 8.215,703,562

2023 35,623 0.2% 0.1%16,478 2.215,666,203

2022 34,507 0.2% 0%4,726 7.315,630,580

2021 32,589 0.2% 0%5,646 5.815,596,073

2020 33,637 0.2% -0.5%(81,050) -15,563,484

YTD 0 0% -0.3%(46,701) -15,529,847

2019 18,941 0.1% -0.6%(92,140) -15,529,847

2018 75,072 0.5% 3.3%507,828 0.115,510,906

2017 330,689 2.2% 3.1%472,332 0.715,435,834

2016 188,969 1.3% 1.8%264,937 0.715,105,145

2015 84,823 0.6% 1.0%153,428 0.614,916,176

2014 7,264 0% -0.6%(91,305) -14,831,353

2013 0 0% 0.7%96,951 014,824,089

2012 38,547 0.3% -0.6%(82,997) -14,824,089

2011 204,751 1.4% -0.2%(22,480) -14,785,542

2010 7,232 0% 0.7%102,186 0.114,580,791

2009 548,111 3.9% 3.9%568,635 1.014,573,559

2008 662,139 5.0% 3.2%443,371 1.514,025,448


Page 24


POWER CENTER SUPPLY & DEMAND



2024 37,853 0.2% 0.3%51,204 0.715,972,998

2023 36,143 0.2% 0.4%63,719 0.615,935,145

2022 34,973 0.2% 0.3%53,128 0.715,899,002

2021 27,227 0.2% 0.2%37,736 0.715,864,029

2020 3,513 0% 0.4%65,264 0.115,836,802

YTD 0 0% 0.2%28,071 015,833,289

2019 77,384 0.5% -0.6%(87,844) -15,833,289

2018 57,500 0.4% -0.7%(105,517) -15,755,905

2017 47,500 0.3% 0.8%126,477 0.415,698,405

2016 13,445 0.1% -2.3%(363,543) -15,650,905

2015 24,542 0.2% 0.5%84,092 0.315,637,460

2014 119,775 0.8% 2.3%360,769 0.315,612,918

2013 88,616 0.6% 0.8%119,757 0.715,493,143

2012 128,031 0.8% 1.7%263,705 0.515,404,527

2011 425,353 2.9% 4.2%643,360 0.715,276,496

2010 27,609 0.2% 2.0%299,305 0.114,851,143

2009 795,915 5.7% 2.9%428,750 1.914,823,534

2008 906,839 6.9% 3.5%484,959 1.914,027,619

NEIGHBORHOOD CENTER SUPPLY & DEMAND



2024 209,003 0.4% 0.5%237,305 0.950,724,465

2023 199,308 0.4% 0.5%273,059 0.750,515,462

2022 192,992 0.4% 0.5%230,640 0.850,316,154

2021 132,684 0.3% 0.3%157,614 0.850,123,162

2020 143,868 0.3% 0.2%100,054 1.449,990,478

YTD 53,200 0.1% -0.2%(90,871) -49,899,810

2019 230,997 0.5% -0.1%(51,358) -49,846,610

2018 165,534 0.3% 0.9%457,025 0.449,615,613

2017 255,676 0.5% 0.7%354,379 0.749,450,079

2016 200,828 0.4% 1.5%725,725 0.349,194,403

2015 435,238 0.9% 1.0%490,825 0.948,993,575

2014 296,795 0.6% 1.1%557,203 0.548,558,337

2013 315,432 0.7% 1.5%718,757 0.448,261,542

2012 492,207 1.0% 1.9%889,236 0.647,946,110

2011 115,322 0.2% 0.7%350,471 0.347,453,903

2010 329,703 0.7% 0.8%385,262 0.947,338,581

2009 313,320 0.7% 0.5%244,978 1.347,008,878

2008 514,659 1.1% 0.3%156,277 3.346,695,558


Page 25


STRIP CENTER SUPPLY & DEMAND



2024 81,344 1.0% 0.9%75,078 1.18,297,949

2023 77,590 1.0% 1.0%78,660 1.08,216,605

2022 75,126 0.9% 0.8%65,679 1.18,139,015

2021 42,477 0.5% 0.5%42,872 1.08,063,889

2020 42,307 0.5% -0.1%(4,038) -8,021,412

YTD 0 0% -0.3%(21,467) -7,979,105

2019 38,982 0.5% 0.7%54,826 0.77,979,105

2018 113,096 1.4% 1.2%95,576 1.27,940,123

2017 51,663 0.7% 0.5%39,197 1.37,827,027

2016 40,148 0.5% 1.0%75,025 0.57,775,364

2015 34,322 0.4% 1.5%117,109 0.37,735,216

2014 40,508 0.5% 2.0%154,843 0.37,700,894

2013 58,221 0.8% 1.4%104,221 0.67,660,386

2012 20,078 0.3% 0.9%70,527 0.37,602,165

2011 0 0% 1.1%80,520 07,582,087

2010 0 0% 1.5%114,344 07,582,087

2009 88,353 1.2% -0.1%(11,142) -7,582,087

2008 280,498 3.9% 2.2%162,960 1.77,493,734

GENERAL RETAIL SUPPLY & DEMAND



2024 776,627 1.2% 0.9%617,049 1.367,909,573

2023 740,658 1.1% 1.0%642,204 1.267,132,946

2022 717,434 1.1% 0.9%575,495 1.266,392,288

2021 637,562 1.0% 0.7%470,988 1.465,674,854

2020 622,169 1.0% 0%17,308 35.965,037,292

YTD 148,561 0.2% -0.1%(71,042) -64,563,684

2019 255,736 0.4% 0.1%81,310 3.164,415,123

2018 587,611 0.9% 1.2%749,836 0.864,159,387

2017 822,725 1.3% 1.2%775,536 1.163,571,776

2016 306,386 0.5% 1.2%757,095 0.462,749,051

2015 241,926 0.4% 0.8%472,231 0.562,442,665

2014 (52,065) -0.1% 0.7%448,979 -62,200,739

2013 562,061 0.9% 1.6%999,603 0.662,252,804

2012 (312,336) -0.5% -0.1%(39,782) -61,690,743

2011 87,724 0.1% 0.9%554,364 0.262,003,079

2010 268,180 0.4% 0.8%524,858 0.561,915,355

2009 588,870 1.0% 0.3%163,771 3.661,647,175

2008 47,991 0.1% 0.6%384,401 0.161,058,305


Page 26


OTHER SUPPLY & DEMAND



2024 16,069 1.2% 0.9%12,400 1.31,377,444

2023 15,341 1.1% 0.9%12,758 1.21,361,375

2022 14,862 1.1% 0.7%9,788 1.51,346,034

2021 8,668 0.7% 0.1%1,866 4.61,331,172

2020 1,321 0.1% -0.5%(6,176) -1,322,504

YTD 0 0% -- -1,321,183

2019 0 0% -- -1,321,183

2018 328,120 33.0% 28.8%380,844 0.91,321,183

2017 7,404 0.8% -6.4%(64,001) -993,063

2016 57,677 6.2% 6.1%60,238 1.0985,659

2015 0 0% 0.3%3,238 0927,982

2014 0 0% -0.1%(1,206) -927,982

2013 0 0% 0.4%3,901 0927,982

2012 0 0% 0.6%5,845 0927,982

2011 0 0% -0.1%(850) -927,982

2010 0 0% 0.7%6,062 0927,982

2009 0 0% -1.8%(16,960) -927,982

2008 129,239 16.2% 13.5%125,399 1.0927,982


Page 27

Rent & VacancyDenver Retail

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 135 0.6% 5.2%$24.09 7,941,278 5.0% 0.1%

2023 134 0.6% 4.6%$23.96 7,802,642 4.9% 0%

2022 133 0.5% 4.0%$23.82 7,806,854 4.9% 0%

2021 133 1.0% 3.4%$23.69 7,697,676 4.9% 0.1%

2020 131 2.4% 2.4%$23.47 7,538,272 4.8% 0.5%

YTD 130 1.4% 1.4%$23.23 7,173,317 4.6% 0.3%

2019 128 2.3% 0%$22.91 6,772,008 4.4% 0.4%

2018 125 3.8% -2.3%$22.39 6,075,591 3.9% -0.5%

2017 121 5.3% -5.9%$21.57 6,851,568 4.5% -0.2%

2016 115 4.8% -10.6%$20.49 7,063,858 4.7% -0.5%

2015 109 3.9% -14.7%$19.55 7,788,482 5.2% -0.4%

2014 105 5.9% -17.9%$18.81 8,275,902 5.5% -0.7%

2013 99 3.9% -22.5%$17.76 9,305,877 6.2% -0.7%

2012 96 1.0% -25.4%$17.09 10,328,600 7.0% -0.5%

2011 95 0% -26.1%$16.92 11,068,607 7.5% -0.6%

2010 95 -2.1% -26.1%$16.93 11,841,067 8.0% -0.5%

2009 97 -3.2% -24.5%$17.29 12,581,996 8.6% 0.5%

2008 100 -1.3% -22.1%$17.86 11,619,273 8.1% 0.4%

MALLS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 142 0.6% 5.7%$34.84 682,939 4.3% 0.2%

2023 142 0.6% 5.1%$34.63 650,627 4.2% 0.1%

2022 141 0.6% 4.4%$34.41 632,009 4.0% 0.2%

2021 140 1.0% 3.8%$34.20 602,712 3.9% 0.2%

2020 138 2.7% 2.7%$33.85 575,888 3.7% 0.7%

YTD 137 1.5% 1.5%$33.45 507,855 3.3% 0.3%

2019 135 1.2% 0%$32.96 461,154 3.0% 0.7%

2018 133 3.2% -1.2%$32.58 350,073 2.3% -2.8%

2017 129 5.1% -4.3%$31.56 782,829 5.1% -1.0%

2016 123 5.4% -8.9%$30.03 924,472 6.1% -0.6%

2015 116 2.1% -13.6%$28.49 1,007,440 6.8% -0.5%

2014 114 7.0% -15.4%$27.90 1,076,045 7.3% 0.7%

2013 107 4.8% -20.9%$26.08 977,476 6.6% -0.7%

2012 102 1.3% -24.5%$24.89 1,074,427 7.2% 0.8%

2011 100 1.5% -25.4%$24.58 952,883 6.4% 1.5%

2010 99 1.4% -26.5%$24.22 725,877 5.0% -0.7%

2009 98 -2.4% -27.5%$23.89 820,831 5.6% -0.4%

2008 100 -1.6% -25.8%$24.47 841,355 6.0% 1.3%


Page 28


POWER CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 134 0.5% 4.4%$25.69 1,058,229 6.6% -0.1%

2023 134 0.5% 3.9%$25.56 1,072,345 6.7% -0.2%

2022 133 0.4% 3.4%$25.44 1,100,709 6.9% -0.1%

2021 132 0.8% 2.9%$25.33 1,119,565 7.1% -0.1%

2020 131 2.1% 2.1%$25.12 1,130,399 7.1% -0.4%

YTD 130 1.2% 1.2%$24.90 1,164,004 7.4% -0.2%

2019 129 2.3% 0%$24.61 1,192,075 7.5% 1.0%

2018 126 3.8% -2.2%$24.06 1,026,847 6.5% 1.0%

2017 121 5.4% -5.8%$23.17 863,830 5.5% -0.5%

2016 115 5.1% -10.6%$21.99 942,807 6.0% 2.4%

2015 109 3.9% -14.9%$20.93 565,819 3.6% -0.4%

2014 105 6.2% -18.1%$20.14 625,369 4.0% -1.6%

2013 99 3.7% -22.9%$18.97 866,363 5.6% -0.2%

2012 96 1.2% -25.7%$18.29 897,504 5.8% -0.9%

2011 94 0.1% -26.6%$18.07 1,033,178 6.8% -1.7%

2010 94 -2.2% -26.6%$18.05 1,251,185 8.4% -1.8%

2009 96 -3.5% -25.0%$18.47 1,522,881 10.3% 2.0%

2008 100 -1.3% -22.2%$19.15 1,155,716 8.2% 2.6%

NEIGHBORHOOD CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 131 0.5% 4.6%$22.06 2,994,130 5.9% -0.1%

2023 130 0.5% 4.0%$21.95 3,026,319 6.0% -0.2%

2022 129 0.5% 3.5%$21.83 3,103,937 6.2% -0.1%

2021 129 0.9% 2.9%$21.71 3,145,169 6.3% -0.1%

2020 127 2.0% 2.0%$21.51 3,171,320 6.3% 0.1%

YTD 126 1.0% 1.0%$21.31 3,268,262 6.5% 0.3%

2019 125 2.1% 0%$21.09 3,124,191 6.3% 0.5%

2018 122 3.9% -2.1%$20.66 2,840,656 5.7% -0.6%

2017 118 5.3% -5.8%$19.88 3,142,065 6.4% -0.2%

2016 112 4.9% -10.5%$18.88 3,240,975 6.6% -1.1%

2015 107 4.3% -14.7%$18.00 3,765,872 7.7% -0.2%

2014 102 5.2% -18.2%$17.25 3,821,776 7.9% -0.6%

2013 97 3.1% -22.3%$16.40 4,082,184 8.5% -0.9%

2012 94 0.6% -24.6%$15.90 4,487,589 9.4% -0.9%

2011 94 -0.3% -25.1%$15.80 4,884,618 10.3% -0.5%

2010 94 -3.0% -24.8%$15.85 5,119,767 10.8% -0.1%

2009 97 -3.2% -22.5%$16.34 5,117,510 10.9% 0.1%

2008 100 -1.4% -19.9%$16.89 5,049,168 10.8% 0.7%


Page 29


STRIP CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 129 0.5% 4.3%$21.40 472,517 5.7% 0%

2023 129 0.5% 3.8%$21.30 467,764 5.7% -0.1%

2022 128 0.4% 3.3%$21.20 470,393 5.8% 0%

2021 128 0.9% 2.9%$21.11 462,374 5.7% 0%

2020 126 2.0% 2.0%$20.93 463,152 5.8% 0.6%

YTD 125 1.1% 1.1%$20.74 438,271 5.5% 0.3%

2019 124 2.2% 0%$20.52 416,804 5.2% -0.2%

2018 121 3.5% -2.1%$20.08 432,648 5.4% 0.1%

2017 117 4.9% -5.5%$19.40 415,128 5.3% 0.1%

2016 112 4.1% -9.9%$18.49 401,037 5.2% -0.6%

2015 107 4.2% -13.4%$17.76 441,514 5.7% -1.1%

2014 103 5.4% -16.9%$17.05 524,301 6.8% -1.5%

2013 98 3.9% -21.2%$16.17 638,636 8.3% -0.7%

2012 94 0.6% -24.2%$15.56 684,636 9.0% -0.7%

2011 93 -0.7% -24.6%$15.46 735,085 9.7% -1.1%

2010 94 -2.9% -24.1%$15.57 815,605 10.8% -1.5%

2009 97 -3.1% -21.8%$16.04 929,949 12.3% 1.3%

2008 100 -1.3% -19.3%$16.55 824,268 11.0% 1.1%

GENERAL RETAIL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 137 0.6% 5.7%$23.06 2,688,009 4.0% 0.2%

2023 136 0.6% 5.1%$22.92 2,543,766 3.8% 0.1%

2022 135 0.6% 4.4%$22.79 2,460,530 3.7% 0.2%

2021 134 1.0% 3.8%$22.66 2,333,628 3.6% 0.2%

2020 133 2.8% 2.8%$22.43 2,170,086 3.3% 0.9%

YTD 131 1.7% 1.7%$22.19 1,774,995 2.7% 0.3%

2019 129 3.0% 0%$21.82 1,557,854 2.4% 0.2%

2018 126 4.0% -2.9%$21.19 1,405,437 2.2% -0.3%

2017 121 5.4% -6.6%$20.38 1,575,062 2.5% 0%

2016 115 4.5% -11.3%$19.35 1,553,318 2.5% -0.7%

2015 110 4.3% -15.1%$18.51 2,004,027 3.2% -0.4%

2014 105 6.1% -18.6%$17.76 2,221,363 3.6% -0.8%

2013 99 4.3% -23.3%$16.74 2,735,376 4.4% -0.8%

2012 95 1.1% -26.4%$16.05 3,174,701 5.1% -0.4%

2011 94 -0.3% -27.3%$15.87 3,447,255 5.6% -0.8%

2010 94 -2.5% -27.1%$15.91 3,913,895 6.3% -0.4%

2009 97 -3.4% -25.2%$16.32 4,170,025 6.8% 0.6%

2008 100 -1.1% -22.6%$16.88 3,744,926 6.1% -0.6%


Page 30


OTHER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 132 0.6% 5.6%$22.52 45,454 3.3% 0.2%

2023 132 0.6% 5.0%$22.38 41,821 3.1% 0.2%

2022 131 0.6% 4.3%$22.23 39,276 2.9% 0.3%

2021 130 1.1% 3.6%$22.10 34,228 2.6% 0.5%

2020 129 2.5% 2.5%$21.86 27,427 2.1% 0.6%

YTD 127 1.4% 1.4%$21.62 19,930 1.5% 0%

2019 125 1.1% 0%$21.32 19,930 1.5% 0%

2018 124 3.5% -1.1%$21.08 19,930 1.5% -5.8%

2017 120 5.3% -4.4%$20.37 72,654 7.3% 7.2%

2016 114 4.9% -9.2%$19.35 1,249 0.1% -0.3%

2015 109 4.3% -13.4%$18.45 3,810 0.4% -0.3%

2014 104 4.8% -17.0%$17.70 7,048 0.8% 0.1%

2013 99 3.2% -20.8%$16.89 5,842 0.6% -0.4%

2012 96 -0.2% -23.2%$16.37 9,743 1.0% -0.6%

2011 96 0.5% -23.1%$16.40 15,588 1.7% 0.1%

2010 96 -1.8% -23.5%$16.31 14,738 1.6% -0.7%

2009 98 -2.3% -22.1%$16.61 20,800 2.2% 1.8%

2008 100 -1.7% -20.3%$17.00 3,840 0.4% 0.4%


Page 31

Sale TrendsDenver Retail

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 175- $243.66 6.8%

2023 -- - -- 174- $242.98 6.7%

2022 -- - -- 173- $241.17 6.7%

2021 -- - -- 170- $236.62 6.7%

2020 -- - -- 162- $226.17 6.8%

YTD $301.6M162 0.9% $252.64$2,403,918 1636.1% $226.57 6.7%

2019 $1.3B632 4.2% $243.71$2,725,738 1616.2% $224.42 6.7%

2018 $1.5B744 7.0% $191.38$2,712,609 1546.5% $214.19 6.7%

2017 $1.3B639 5.5% $182.04$2,611,564 1486.2% $206.06 6.8%

2016 $1.3B647 4.2% $246.62$2,438,174 1416.6% $196.95 6.8%

2015 $1.5B748 6.7% $190.45$2,462,358 1356.8% $187.53 6.9%

2014 $1B699 5.9% $154.99$1,817,299 1257.1% $173.63 7.2%

2013 $1B649 5.6% $160.47$2,178,476 1097.5% $151.30 7.6%

2012 $857.9M544 5.0% $178.46$2,224,898 1067.8% $147.04 7.7%

2011 $499M409 3.7% $135.57$1,653,692 968.3% $133.91 8.1%

2010 $351.8M324 2.5% $107.37$1,310,860 918.2% $127.23 8.4%

2009 $475.8M232 2.0% $193.33$2,443,247 888.3% $122.62 8.5%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

MALLS SALES





2024 -- - -- 156- $231.64 6.7%

2023 -- - -- 155- $230.95 6.6%

2022 -- - -- 154- $229.12 6.5%

2021 -- - -- 151- $224.68 6.5%

2020 -- - -- 145- $214.67 6.6%

YTD -- - -- 145- $214.81 6.5%

2019 $13M4 0.1% $556.77$3,240,000 1445.4% $213.95 6.5%

2018 $199.5M45 21.2% $146.99$6,235,218 1376.0% $203.32 6.6%

2017 $77.8M14 2.7% $265.98$7,073,874 1325.5% $195.77 6.6%

2016 $18.8M13 2.9% $347.66$3,128,340 1265.4% $187.66 6.7%

2015 $256.2M22 10.8% $403.54$25,623,040 1235.6% $182.62 6.7%

2014 $10M5 3.1% $59.88$3,339,333 1156.9% $170.73 6.9%

2013 $25.7M21 3.1% $397.88$3,211,750 107- $158.88 7.2%

2012 $302.9M30 11.3% $522.43$37,858,678 1058.2% $156.28 7.2%

2011 $3.5M2 1.5% $15.45$1,753,500 968.9% $143.23 7.5%

2010 $4.6M2 0.1% $568.43$2,309,250 929.0% $136.15 7.8%

2009 $232.1M2 4.0% $607.31$232,050,193 88- $131.03 7.9%




Page 32


POWER CENTER SALES





2024 -- - -- 159- $227.02 6.8%

2023 -- - -- 158- $226.53 6.7%

2022 -- - -- 157- $224.99 6.7%

2021 -- - -- 154- $220.95 6.7%

2020 -- - -- 148- $211.50 6.8%

YTD $55.5M21 1.6% $217.71$2,640,509 148- $212.08 6.7%

2019 $54.5M17 1.6% $228.48$3,632,667 1486.1% $211.77 6.6%

2018 $115.9M26 5.8% $126.71$4,456,769 1416.7% $201.30 6.7%

2017 $77M19 6.1% $102.32$4,529,721 1366.5% $193.83 6.7%

2016 $80M12 1.5% $341.31$6,663,841 1307.0% $185.99 6.8%

2015 $169.1M39 7.9% $216.83$5,830,493 1256.2% $178.26 6.9%

2014 $56.1M45 6.3% $240.15$5,606,457 1187.1% $168.84 7.0%

2013 $255.9M47 10.0% $226.95$10,234,735 1047.4% $148.21 7.4%

2012 $53.4M34 5.9% $160.88$4,105,307 1047.5% $148.80 7.4%

2011 $36M22 8.2% $168.54$6,008,302 969.6% $137.09 7.7%

2010 $8M6 1.6% $34.38$1,602,320 92- $131.39 8.0%

2009 $3.8M1 0.5% $48.15$3,850,000 88- $126.32 8.1%



NEIGHBORHOOD CENTER SALES





2024 -- - -- 168- $213.75 6.9%

2023 -- - -- 168- $213.16 6.9%

2022 -- - -- 166- $211.56 6.8%

2021 -- - -- 163- $207.58 6.8%

2020 -- - -- 156- $198.55 6.9%

YTD $43.6M12 0.7% $151.29$4,842,297 1576.4% $198.96 6.8%

2019 $456.9M102 4.9% $205.75$5,432,149 1566.4% $198.41 6.8%

2018 $356.5M118 5.1% $155.92$3,593,605 1486.8% $188.26 6.9%

2017 $476.4M131 6.1% $161.77$4,091,287 1436.2% $181.10 6.9%

2016 $559.7M121 4.6% $249.90$4,862,566 1366.5% $173.41 7.0%

2015 $389.4M129 6.1% $135.75$3,191,924 1306.6% $165.50 7.1%

2014 $352.7M122 5.6% $143.63$3,235,976 1226.8% $154.47 7.3%

2013 $347.8M117 5.7% $143.14$3,250,739 1068.0% $134.78 7.7%

2012 $168.7M97 4.3% $103.79$2,677,483 1047.6% $132.39 7.8%

2011 $202.5M80 3.8% $148.20$3,214,150 957.3% $120.93 8.2%

2010 $112.2M44 2.3% $116.84$2,794,686 917.9% $116.03 8.4%

2009 $78.3M28 1.5% $116.94$2,900,870 888.0% $112.00 8.5%




Page 33


STRIP CENTER SALES





2024 -- - -- 181- $273.44 6.9%

2023 -- - -- 181- $272.92 6.8%

2022 -- - -- 180- $271.11 6.7%

2021 -- - -- 177- $266.25 6.7%

2020 -- - -- 169- $254.82 6.8%

YTD $6.9M4 0.3% $432.92$2,304,167 170- $255.46 6.7%

2019 $80.8M37 4.4% $279.31$2,676,661 1677.1% $251.12 6.7%

2018 $78.6M46 4.8% $321.48$2,657,177 1625.9% $244.64 6.7%

2017 $86.9M54 6.6% $232.86$2,534,727 1577.2% $235.86 6.7%

2016 $89.9M54 7.0% $197.59$2,089,634 1507.1% $225.63 6.8%

2015 $110M58 8.4% $215.53$2,618,915 1417.2% $212.81 6.9%

2014 $72.8M62 7.2% $141.04$1,343,874 1307.6% $195.34 7.2%

2013 $47.7M43 6.3% $133.26$1,524,907 1118.1% $167.68 7.8%

2012 $59.9M47 6.9% $145.47$1,726,832 1068.4% $160.14 7.9%

2011 $25.6M27 3.4% $137.01$1,666,074 978.3% $145.70 8.3%

2010 $19.1M19 2.5% $147.16$1,853,711 917.5% $136.86 8.7%

2009 $15.7M14 2.0% $123.19$1,311,592 889.4% $131.96 8.8%



GENERAL RETAIL SALES





2024 -- - -- 187- $269.66 6.7%

2023 -- - -- 187- $268.79 6.7%

2022 -- - -- 185- $266.77 6.6%

2021 -- - -- 182- $261.68 6.6%

2020 -- - -- 174- $249.92 6.7%

YTD $195.6M125 1.2% $308.09$2,108,200 1746.1% $250.28 6.6%

2019 $709.3M472 5.3% $270.55$2,027,683 1716.0% $246.50 6.6%

2018 $701.7M508 5.8% $251.94$2,004,229 1646.5% $235.93 6.7%

2017 $586.4M419 5.4% $206.91$1,801,641 1576.1% $226.78 6.7%

2016 $576.1M447 4.7% $241.31$1,565,114 1506.6% $216.12 6.7%

2015 $568.8M500 5.8% $186.60$1,408,102 1426.8% $204.51 6.9%

2014 $526.5M465 6.5% $164.72$1,367,093 1307.2% $187.28 7.2%

2013 $370.7M420 5.0% $145.39$1,194,191 1127.0% $160.71 7.7%

2012 $273.2M336 3.6% $146.91$1,005,704 1077.6% $153.86 7.8%

2011 $231.4M278 3.1% $137.17$1,064,910 978.3% $139.24 8.2%

2010 $207.8M253 3.4% $106.85$984,374 918.3% $131.29 8.5%

2009 $145.9M186 2.2% $121.38$941,353 888.1% $126.50 8.7%




Page 34


OTHER SALES





2024 -- - -- 159- $234.54 6.9%

2023 -- - -- 158- $234.08 6.8%

2022 -- - -- 157- $232.53 6.7%

2021 -- - -- 154- $228.34 6.7%

2020 -- - -- 148- $218.34 6.8%

YTD -- - -- 148- $218.89 6.7%

2019 -- - -- 146- $215.73 6.8%

2018 $01 0.4% -- 137- $202.75 6.9%

2017 $16.8M2 6.2% $274.23$8,415,850 1346.2% $198.51 6.8%

2016 -- - -- 131- $193.14 6.8%

2015 -- - -- 126- $185.76 6.8%

2014 -- - -- 118- $174.04 7.1%

2013 $01 2.2% -- 103- $152.64 7.5%

2012 -- - -- 102- $150.46 7.5%

2011 -- - -- 93- $138.15 7.9%

2010 -- - -- 90- $133.33 8.1%

2009 $01 1.9% -- 88- $130.48 8.1%




Page 35

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