denver q2 2020 · 2020-07-28 · a kmart and several toys "r" us locations have also...

DENVER

MARKET REPORTRETAIL

Q2 2020

303.321.5888 UNIQUEPROP.COM

FULL-SERVICE COMMERCIAL REAL ESTATE SOLUTIONSPrivately-Owned and Operated for Over 40 Years

RETAIL MARKET REPORT

Market Key Statistics 2

Leasing 4

Rent 9

Construction 11

Under Construction Properties 13

Sales 15

Sales Past 12 Months 17

Economy 19

Market Submarkets 22

Supply & Demand Trends 25

Rent & Vacancy 29

Sale Trends 33

Denver Retail

7/28/2020Copyrighted report licensed to Unique Properties, Inc. - 1130503

OverviewDenver Retail

1 M (604 K) 5.1% 2.0%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

In a surprise turn of events, the Denver metro areaadded 30,000 jobs during the month of May, according tothe latest monthly data from the Bureau of LaborStatistics. The nonfarm unemployment rate drew closerto 10%, well below the national average, bolsteringDenver's status as a consistent outperformer irrespectiveof the macro environment. Denver was also among thefirst metros to recover jobs lost from the GreatRecession.

Leisure and hospitality still weighed on the labor marketas employment in the sector was down 40% at the samepoint last year. Other services, which includes many jobstied to retail, were down about 18%. Work-from-homeindustries continue to weather the storm relatively well.Information jobs were up 1% annually, and professionaland business services was only down about 1.5%.

The economic impact of the pandemic and shelter-in-place orders in April dwarfed that of the Great FinancialCrisis, which spanned several years. From 2008-09,Denver lost about 67,000 jobs, or about 100,000 fewerthan reported last month.

The last time oil prices fell this low in 2016, the localeconomy felt the impact. An oil price war between SaudiArabia and Russia caused prices to plummet to $20 abarrel in March. The fallout of the demand shock causedby the coronavirus led to oil prices hitting all-time lows inApril, even after the U.S. and Mexico agreed to cut oilproduction along with OPEC+. Oil markets rebounded inMay, hovering around $30 per barrel.

Denver's retail market was on solid footing entering

2020, 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 strongconsumer 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.


Page 2

OverviewDenver Retail

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$33.414.0%16,666,044Malls 4.2% (77,065) 0 20,000

$24.878.1%15,515,625Power Center 9.4% (30,320) 0 7,500

$21.347.1%50,514,662Neighborhood Center 8.8% (122,566) 0 129,262

$20.526.1%7,950,157Strip Center 7.9% (27,087) 0 26,804

$22.103.0%64,824,791General Retail 4.5% (34,154) 51,604 663,418

$21.661.5%1,321,183Other 1.8% 0 0 3,000

$23.245.1%156,792,462Market 6.5% (291,192) 51,604 849,984

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

5.9%6.3%0.8%Vacancy Change (YOY) 8.8% 2009 Q3 3.9% 2018 Q4

297,8571,617,793(604 K)Net Absorption SF 4,707,469 2007 Q2 (295,456) 2020 Q2

1,037,7621,750,9611 MDeliveries SF 5,072,066 2006 Q4 646,903 2010 Q4

0.8%2.0%2.0%Rent Growth 6.0% 2014 Q4 -3.2% 2009 Q4

N/A$974.1M$1.2 BSales Volume $1.7B 2018 Q2 $337.4M 2010 Q3


Page 3

LeasingDenver Retail

Vacancies that peaked at 9% during the downturn werenear historical lows entering 2020. However, thecoronavirus shock to the retail market resulted in theshuttering of all non-essential stores for an extendedperiod of time. Lost revenue in the coming months couldforce many tenants to permanently close their doors,unless both tenants, landlords, and lenders can getcreative 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.


Page 4


NET ABSORPTION, NET DELIVERIES & VACANCY

VACANCY RATE


Page 5


AVAILABILITY RATE


Page 6


12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

Central Ret 200,000 3,503 190,800 5,697 0 0 196,4973235 Larimer St

Northwest Ret 140,000 0 43,560 12,000 0 0 55,560Candelas Marketplace

Aurora Ret 78,464 0 0 0 0 0 54,583The Point at Nine Mile Station

West Ret 126,758 40,677 0 4,015 0 0 50,477Westland Plaza

Southeast Outlying Ret 43,000 0 0 43,000 0 0 43,000Promenade at Castle Rock

South Ret 41,000 0 0 0 41,000 0 41,000Alpine Buick GMC

Central Ret 95,763 9,434 0 (1,680) 0 0 36,184South Lowry Marketplace

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

Northwest Ret 168,138 71,493 (10,793) 42,900 0 0 28,996Westminster City Center Market…

Southwest Ret 194,620 44,089 0 (5,049) 0 0 28,884Bowles Crossing

Southwest Ret 47,740 5,920 1,820 0 0 0 27,290River Point at Sheridan

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

Central Ret 45,800 19,449 24,162 2,189 0 0 26,351Village On The Park

Northwest Ret 25,091 0 0 0 0 0 25,091Northglenn Marketplace

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

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

Central Ret 27,529 0 0 0 0 0 20,929Old Town Marquee

1,379,017 218,214 299,713 103,072 41,000 0 741,506Subtotal Primary Competitors

155,414,685 7,764,362 (346,259) (461,359) (332,192) 0 (1,345,668)Remaining Denver Market

156,793,702 7,982,576 (46,546) (358,287) (291,192) 0 (604,162)Total Denver Market


Page 7


TOP RETAIL LEASES PAST 12 MONTHS

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

Arvada Marketplace * Northwest 68,238 Floor and Decor Outlets - NewMark Merrill Comp…Q2 20

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

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

Thornton Town Center Northeast 29,767 Furniture City Pegasus Group LLC -Q3 19

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

Belmar West 27,611 - - SRS Real Estate Partn…Q3 20

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

Washington Plaza Northeast 25,000 Goodwill - TEL ManagementQ4 19

Larkridge Northeast 23,824 - - Jordon Perlmutter & Co.Q3 20

The Gardens on Havana Aurora 23,287 Office Depot - AmCap IncorporatedQ3 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

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

Willow Creek Shopping Center South 18,500 Perfect Teeth For Kids - Legend PartnersQ3 20

Chambers Place Shopping Centre Northeast 16,000 - - CBREQ3 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

Abilene Market Aurora 15,232 - - NAI Shames MakovskyQ3 20

Belmar Southwest Denver 14,946 - - SRS Real Estate Partn…Q3 20

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

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

Iliff Exchange Shopping Center Aurora 12,000 - - Newmark Knight FrankQ1 20

Candelas Marketplace Northwest 12,000 - - Crosbie Real Estate Gr…Q1 20

Pioneer Hills Southeast 11,714 Dollar Tree - SRS Real Estate Partn…Q2 20

Arvada Marketplace Northwest 11,152 Five Below - SullivanHayes BrokerageQ3 20

11550 Sheridan Blvd Northwest Denver 10,500 New West Physicians JLL Pinnacle Real Estate A…Q3 19

Arlington Square * Northwest 10,472 Gen-X - Peak Property Manage…Q1 20

Solaire Shoppes Northwest 10,268 Cartier Event Center - Gibbons-White, Inc.Q2 20

Southlands Southeast 10,093 ULTA - SRS Real Estate Partn…Q2 20

Arapahoe Crossings Southeast 10,055 Goldfish Swim School - Brixmor Property Grou…Q2 20

Gateway Plaza Aurora 10,000 - - Brokers Guild Real EstateQ1 20

5060-5062 S Syracuse St Southeast 10,000 Lions Den - SullivanHayes BrokerageQ4 19

1310-1320 S Abilene St Aurora 10,000 Get Shooting LLC - Unique Properties, Inc.Q3 19

*Renewal


Page 8

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 and into2020. Annual gains clocked in below 1% for the first timesince 2011. Given current economic conditions, rentgrowth is likely to continue its moderation.

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)


Page 9

RentDenver Retail

MARKET RENT PER SQUARE FEET


Page 10

ConstructionDenver Retail

The Colorado Governor's stay-at-home order considersjobs in the construction industry as essential, whichwould allow developers to move forward with projects ifthey choose. Deteriorating economic conditions couldkeep upcoming groundbreakings on hold, andspeculative projects slated to deliver in Colorado in 2020must grapple with the uncertainty of demand.

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 PremiumOutlets in Thornton at end of 2018, no further mall-style

developments 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


Page 11

ConstructionDenver Retail

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 Northeast 13 257 19,79561.0% 8 13,155157 3

2 Downtown 3 206 68,74716.1% 10 14,99333 1

3 Central 6 119 19,79189.4% 5 8,807106 4

4 Northwest 8 69 8,59032.4% 9 16,57722 6

5 Southeast Outlying 5 52 10,42992.1% 3 11,69948 5

6 Southeast 9 49 5,43490.4% 4 17,80144 9

7 Aurora 2 46 23,12582.7% 7 16,71338 2

8 West 6 40 6,71388.8% 6 10,21536 8

9 Southwest 1 8 7,500100% 1 21,2088 7

10 South 1 4 3,867100% 1 19,7714 10

All Other 0 - -- 11,561-

Totals 54 850 15,74058.4% 13,436496


Page 12

Under Construction PropertiesDenver Retail

54 849,984 0.5% 58.4%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 Dec 2020Thompson Thrift

Thompson Thrift3

Mar 201918620 Green Valley Ranc…

65,000 1 Aug 2020-

Brown & Associates4

Jun 20189th Ave

AMC44,000 1 Aug 2020

Continuum Partners LLC

Continuum Partners LLC5

Sep 201914531 E Alameda Ave

Parkside@City Centre43,250 1 Aug 2020

Northstar Commercial Partners

Regional Transportation District6

Apr 20191251-1261 Glenarm Pl

42,240 - Aug 2020-

Stonebridge Companies7


Page 13

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2Fredir%2Fdefault.aspx%3Feid%3D9872348%26ProductMode%3DProperty%26external%3D1







Under Construction PropertiesDenver Retail

UNDER CONSTRUCTION

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

Aug 201913750 Grant St

38,000 1 Sep 2020-

Simon Property Group, Inc.8

Mar 2019Westminster Blvd And 92nd

Central Square34,312 1 Dec 2020

Sherman Associates, Inc.

Sherman Associates, Inc.9

May 20192896 Fairfax St

27,000 1 Aug 2020-

HM Capital10

Dec 2019Quebec St & Lowry Blvd

25,000 1 Dec 2020Confluent Development

Kelmore Development11

Jan 2020Wilcox St & First St

Festival Park Commons…22,000 1 Feb 2021

Castle Brae Development LLC

Confluence Companies12

Jul 2020Morrison And I-70

Gateway Village15,275 1 Nov 2020

Northstar Commercial Partners

-13

Jan 202013565 Grant St

14,000 1 Oct 2020-

Kelly Chuong14

Feb 202022986 E Smoky Hill Rd

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

-

Scott W & Wendy B Baldensperger15

Jun 2019825 S Kuner Rd

12,862 1 Oct 2020-

Lamour16

Jul 201956th Ave & Central Park B

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

Evergreen Development Co.

Andres and Catrina Pazo17

Jun 20193599 Central Park Blvd

A Line Square12,000 1 Aug 2020

D H Friedman Properties Llc

-18

Jan 20194850 E 60th Ave

60TH & Vasquez11,956 - Aug 2020

-

Landon Enterprises19

Sep 2019484 Crystal Valley Pky

Crystal Valley Retail Dev…10,144 1 Oct 2020

-

Carlson Associates Inc.20

Jun 2018Wadsworth & Byers

Wadsworth & Byers10,000 1 Oct 2020

-

HealthONE21

Mar 2020Parker Rd & Stroh Rd

Retail Pad10,000 1 Aug 2020

ServiceStar Development Compa…

ServiceStar Development Compa…22

Aug 20192003 Central Park Blvd

8,400 1 Sep 2020-

Miller Real Estate Investments, LLC23

Jul 201956th Ave & Central Park Bl…

Bldg D- Shops at Beeler…8,000 1 Aug 2020

-

-24

Nov 201889th & Westminster Blvd

The Origin Hotel - Retail8,000 1 Oct 2020

The Thrash Group, LLC

-25

Apr 2020Castlegate Dr

8,000 1 Dec 2020Alberta Development Partners, LLC

Forum Real Estate Group26

Jan 20203521 River Point Pky

ROB7,500 1 Feb 2021

-

Weingarten Realty Investors27

Oct 20195300 Sheridan Blvd

7,200 1 Aug 2020-

-28


Page 14






















SalesDenver Retail

Investment activity has slowed dramatically as the longterm impact of the coronavirus on the economy playsout. Before the outbreak, several major deals took place,driving sales volume that is generally on par with first-quarter figures from the past several 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.


Page 15

SalesDenver Retail

SALES VOLUME & MARKET SALE PRICE PER SF


Page 16

Sales Past 12 MonthsDenver Retail

587 6.1% $257 5.0%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 $30,860 $2,701,410 $1,650,000 $30,000,000

Price/SF $3.72 $257 $289 $2,665

Cap Rate 2.6% 6.1% 6.0% 9.9%

Time Since Sale in Months 0.1 6.5 6.8 12.0

Property Attributes Low Average Median High

Building SF 338 9,945 4,575 137,885

Stories 1 1 1 4

Typical Floor SF 338 8,901 4,050 129,182

Vacancy Rate At Sale 0% 5.0% 0% 100%

Year Built 1868 1976 1981 2020

Star Rating 2.5


Page 17

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

1400 S Abilene St9/25/2019 -

-5 Safeway2000 51,609 0% $16,383,490 $317

560 Corona St1/31/2020 5.1%

-6 Alamo Drafthouse Cinema2018 35,512 0% $16,184,211 $456

4255 W Colfax Ave9/30/2019 7.4%

-7 8457-8467 S Yosemite St1997 72,481 0% $15,964,643 $22012/5/2019 -

-8 Shops B2002 104,725 0% $14,929,158 $285

40-100 S Abilene St2/14/2020 -

-9 Safeway1998 55,650 0% $14,750,000 $265

9229 E Lincoln Ave12/23/2019 5.2%

-10 1200 S Buckley Rd2003 57,560 0% $13,250,000 $2309/12/2019 -

-11 Conifer Marketplace1984 86,658 0% $12,250,000 $141

10853 Hwy 2851/16/2020 8.9%

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

9255 S Broadway11/7/2019 5.2%

-13 11051 S Parker Rd1994 61,810 0% $11,800,000 $19110/31/2019 -

-14 Market Square1975 99,156 0% $11,373,897 $115

1407 W 84th Ave9/27/2019 -

-15 5236 Wadsworth Byp2012 4,396 0% $10,700,000 $2,4346/3/2020 -

-16 5220 Wadsworth Byp1988 38,711 4.2% $10,633,000 $2756/3/2020 6.2%

-17 2150 S Monaco Pky1967 110,853 0% $10,500,000 $959/20/2019 -

-18 Havana Square1983 105,944 0% $10,350,000 $98

1911-1999 S Havana St10/30/2019 8.3%

-19 Shops A2003 72,172 73.3% $10,288,539 $285

14140-14180 E Ellsworth…2/14/2020 -

-20 Best Buy2001 45,872 0% $10,000,000 $218

1400 Colorado Mills Pky12/23/2019 -


Page 18

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2Fredir%2Fdefault.aspx%3Feid%3D8989109%26ProductMode%3DProperty%26SelectedTab%3Dsale%26external%3D1




















EconomyDenver Retail

Denver has reclaimed about half of the jobs lost duringApril shutdowns, according to June data from the Bureauof Labor Statistics. The nonfarm unemployment ratecompressed below 10%, outperforming the nationalaverage. At the start of 2020, Denver's unemploymentrate was below 3%, making it one of the tightest jobmarkets in the country.

Leisure and hospitality still weighed on the labor marketas employment in the sector was down more than 20%from last year. Other services, which includes many jobstied to retail, were down about 14%. Work-from-homeindustries continue to weather the storm relatively well.Jobs in information and professional and businessservices were virtually unchanged from the previousyear.

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 a key economic driver forthe region, generating more than $33 billion for the statein 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.

The economic impact of the pandemic and shelter-in-place orders in April dwarfed that of the Great FinancialCrisis, which spanned several years. From 2008-09,Denver lost about 67,000 jobs, or about 100,000 fewerthan reported during April.

Initial unemployment claims in Colorado have climbedpast 550,000 since mid-March. But weekly joblessclaims, including gig workers and the self-employed,continue to fall into July.

The last time oil prices fell this low in 2016, the localeconomy felt the impact. An oil price war between SaudiArabia and Russia caused prices to plummet to $20 perbarrel in March. The fallout of the demand shock causedby the coronavirus led to oil prices hitting all-time lows inApril, even after the U.S. and Mexico agreed to cut oilproduction along with OPEC+. Oil markets rebounded inMay, hovering around $30 per barrel.

Denver's emergence as a bona fide technology market

this cycle has helped insulate it from the impact of thecoronavirus-induced downturn. Tech employers typicallyallow the flexibility of telecommuting, and many office-using employers have the capacity to facilitate a work-from-home transition. Office-using jobs in Denver havegrown above the national average the past five years atabout 3% 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 and


Page 19


prospective owners. While home prices continue to climbinto the stratosphere (albeit at a slower rate than thepeak 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.

DENVER EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Level 12 Month Change 10 Year Change 5 Year Forecast

1.36%0.73%0.15%1.24%-8.83%-1.89%0.669Manufacturing

2.15%2.28%0.09%1.13%-10.53%-8.30%1.0254Trade, Transportation and Utilities

2.59%2.74%-0.55%0.13%-12.52%-12.15%0.8122 Retail Trade

0.78%1.20%1.13%1.80%-1.47%-3.65%1.2110Financial Activities

0.87%0.74%-0.47%1.28%-4.27%-1.26%0.9201Government

2.04%2.22%1.97%4.03%-8.10%-7.43%1.3104Natural Resources, Mining and Construction

2.79%3.18%1.18%2.34%-7.10%-6.34%0.8180Education and Health Services

2.55%2.02%1.55%3.13%-8.27%-1.55%1.4278Professional and Business Services

2.09%0.21%-0.12%1.63%-6.37%1.39%1.852Information

10.20%9.52%-2.43%-1.22%-38.38%-35.33%1.0112Leisure and Hospitality

3.57%3.66%-0.85%0.20%-16.97%-17.06%1.049Other Services

Total Employment 1,408 1.0 -8.25% -11.15% 1.68% 0.27% 2.61% 2.72%

Source: Oxford Economics

LQ = Location Quotient


Page 20



YEAR OVER YEAR JOB GROWTH

DEMOGRAPHIC TRENDS

12 Month ChangeCurrent Level

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

10 Year Change

Metro U.S. Metro U.S.

5 Year Forecast

Population 329,740,0312,995,545 1.1% 0.5% 1.6% 0.6% 1.1% 0.5%

Households 122,429,8441,154,157 1.0% 0.4% 1.5% 0.7% 1.0% 0.4%

Median Household Income $64,482$83,123 1.7% 1.9% 3.5% 2.6% 2.7% 2.7%

Labor Force 158,090,9381,588,465 -5.3% -3.1% 1.1% 0.3% 1.9% 1.1%

Unemployment 13.4%10.2% 7.5% 9.8% 0.1% 0.4% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


Page 21

SubmarketsDenver Retail

DENVER SUBMARKETS


Page 22


SUBMARKET INVENTORY

12 Month Deliveries Under Construction as % of Inventory

Bldgs SF (000) Percent Rank

Inventory

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

1 Aurora 12,151 7.8% 7 2 46 0.4% 7727 5 80 0.7% 7

2 Central 21,365 13.6% 3 6 119 0.6% 32,426 8 319 1.5% 1

3 Colorado Bl/Cherry Ck 5,075 3.2% 9 0 - - -324 1 3 0% 10

4 Downtown 3,508 2.2% 11 3 206 5.9% 2234 0 0 0% -

5 Northeast 15,234 9.7% 6 13 257 1.7% 11,158 16 99 0.7% 4

6 Northwest 24,849 15.9% 2 8 69 0.3% 41,499 12 101 0.4% 3

7 South 18,802 12.0% 4 1 4 0% 10951 9 98 0.5% 5

8 Southeast 15,451 9.9% 5 9 49 0.3% 6868 13 102 0.7% 2

9 Southeast Outlying 3,908 2.5% 10 5 52 1.3% 5334 6 94 2.4% 6

10 Southwest 10,222 6.5% 8 1 8 0.1% 9482 6 73 0.7% 8

11 Southwest Outlying 1,260 0.8% 12 0 - - -224 1 1 0.1% 11

12 West 24,894 15.9% 1 6 40 0.2% 82,437 6 61 0.2% 9

SUBMARKET RENT

Growth

Market Rent

Per SFSubmarketNo.

12 Month Market Rent QTD Annualized Market Rent

RankRank GrowthRank

1 Aurora -1.5%12 1.8% 6$16.82 3

2 Central -1.9%5 2.6% 3$23.36 4

3 Colorado Bl/Cherry Ck -3.2%1 2.9% 2$43.93 10

4 Downtown -3.9%2 3.2% 1$33.42 12

5 Northeast -2.2%6 1.6% 10$21.13 7

6 Northwest -2.0%7 1.8% 7$21.01 5

7 South -2.2%3 2.1% 4$28.75 6

8 Southeast -0.9%4 1.6% 9$25.27 2

9 Southeast Outlying -3.6%10 1.5% 11$19.57 11

10 Southwest -0.1%8 1.7% 8$20.75 1

11 Southwest Outlying -3.1%11 1.2% 12$17.05 9

12 West -2.7%9 2.0% 5$20.61 8


Page 23

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

























SUBMARKET VACANCY & NET ABSORPTION

12 Month Absorption

Rank Construc. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Aurora 633,708 5.2% 0.459,873 0.5% 38

2 Central 794,588 3.7% 6.141,143 0.2% 53

3 Colorado Bl/Cherry Ck 241,355 4.8% -(111,823) -2.2% 95

4 Downtown 112,860 3.2% -(62,269) -1.8% 82

5 Northeast 810,404 5.3% 1.181,407 0.5% 29

6 Northwest 1,532,351 6.2% -(240,439) -1.0% 1112

7 South 1,051,429 5.6% -(283,582) -1.5% 1211

8 Southeast 744,823 4.8% 1.949,353 0.3% 46

9 Southeast Outlying 108,878 2.8% 1.182,590 2.1% 11

10 Southwest 502,871 4.9% -(36,104) -0.4% 77

11 Southwest Outlying 47,500 3.8% -(3,397) -0.3% 64

12 West 1,390,304 5.6% -(169,409) -0.7% 1010


Page 24













Supply & Demand TrendsDenver Retail

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 962,055 0.6% 0.6%1,034,163 0.9159,892,710

2023 931,196 0.6% 0.7%1,123,655 0.8158,930,655

2022 514,660 0.3% 0.5%862,127 0.6157,999,459

2021 226,236 0.1% -0.4%(576,340) -157,484,799

2020 1,014,383 0.6% -0.8%(1,200,396) -157,258,563

YTD 548,282 0.4% -0.4%(696,025) -156,792,462

2019 679,266 0.4% 0%19,638 34.6156,244,180

2018 1,303,951 0.8% 1.3%2,086,134 0.6155,564,914

2017 1,503,113 1.0% 1.1%1,723,246 0.9154,260,963

2016 832,395 0.5% 1.0%1,504,680 0.6152,757,850

2015 855,198 0.6% 0.9%1,313,119 0.7151,925,455

2014 450,206 0.3% 1.0%1,467,026 0.3151,070,257

2013 989,073 0.7% 1.3%2,003,183 0.5150,620,051

2012 378,287 0.3% 0.7%1,119,794 0.3149,630,978

2011 832,996 0.6% 1.1%1,608,756 0.5149,252,691

2010 628,068 0.4% 1.0%1,422,586 0.4148,419,695

2009 2,361,276 1.6% 1.0%1,405,839 1.7147,791,627

2008 2,650,400 1.9% 1.3%1,873,516 1.4145,430,351

MALLS SUPPLY & DEMAND



2024 10,785 0.1% 0%1,349 8.016,711,533

2023 10,456 0.1% 0.2%27,034 0.416,700,748

2022 5,711 0% 0.1%22,467 0.316,690,292

2021 14,393 0.1% -1.7%(282,485) -16,684,581

2020 53,644 0.3% -2.3%(391,315) -16,670,188

YTD 49,500 0.3% -1.1%(175,778) -16,666,044

2019 18,941 0.1% -0.5%(79,905) -16,616,544

2018 75,072 0.5% 3.1%507,828 0.116,597,603

2017 330,689 2.0% 2.9%472,332 0.716,522,531

2016 188,969 1.2% 1.6%264,937 0.716,191,842

2015 84,823 0.5% 1.0%153,428 0.616,002,873

2014 7,264 0% -0.6%(91,305) -15,918,050

2013 0 0% 0.6%96,951 015,910,786

2012 38,547 0.2% -0.5%(82,997) -15,910,786

2011 204,751 1.3% -0.1%(22,480) -15,872,239

2010 7,232 0% 0.7%102,186 0.115,667,488

2009 563,311 3.7% 3.7%583,835 1.015,660,256

2008 662,139 4.6% 2.9%443,371 1.515,096,945


Page 25


POWER CENTER SUPPLY & DEMAND



2024 30,638 0.2% 0.5%71,062 0.415,595,596

2023 29,664 0.2% 0.6%91,083 0.315,564,958

2022 16,564 0.1% 0.6%88,578 0.215,535,294

2021 5,631 0% -0.5%(78,978) -15,518,730

2020 (2,526) 0% -1.0%(153,464) -15,513,099

YTD 0 0% -0.3%(52,956) -15,515,625

2019 88,735 0.6% -0.5%(77,325) -15,515,625

2018 57,500 0.4% -0.8%(116,539) -15,426,890

2017 47,500 0.3% 0.9%143,964 0.315,369,390

2016 18,099 0.1% -2.5%(385,597) -15,321,890

2015 25,005 0.2% 0.5%73,642 0.315,303,791

2014 119,775 0.8% 2.4%369,711 0.315,278,786

2013 88,608 0.6% 0.8%116,383 0.815,159,011

2012 128,031 0.9% 1.7%263,285 0.515,070,403

2011 425,199 2.9% 4.3%639,637 0.714,942,372

2010 27,609 0.2% 2.1%299,536 0.114,517,173

2009 803,402 5.9% 3.0%429,998 1.914,489,564

2008 1,015,518 8.0% 4.0%551,315 1.813,686,162

NEIGHBORHOOD CENTER SUPPLY & DEMAND



2024 174,782 0.3% 0.6%290,110 0.651,035,283

2023 169,119 0.3% 0.7%343,537 0.550,860,501

2022 94,196 0.2% 0.6%312,951 0.350,691,382

2021 (4,255) 0% -0.3%(133,790) -50,597,186

2020 148,479 0.3% -1.0%(506,315) -50,601,441

YTD 61,700 0.1% -0.7%(377,322) -50,514,662

2019 230,997 0.5% -0.1%(47,922) -50,452,962

2018 165,534 0.3% 0.9%477,047 0.350,221,965

2017 255,676 0.5% 0.7%358,979 0.750,056,431

2016 226,716 0.5% 1.5%744,143 0.349,800,755

2015 438,068 0.9% 0.9%454,159 1.049,574,039

2014 300,198 0.6% 1.1%553,638 0.549,135,971

2013 315,432 0.7% 1.5%724,388 0.448,835,773

2012 496,603 1.0% 1.8%892,790 0.648,520,341

2011 115,322 0.2% 0.7%353,904 0.348,023,738

2010 325,047 0.7% 0.8%384,234 0.847,908,416

2009 313,320 0.7% 0.5%253,473 1.247,583,369

2008 515,465 1.1% 0.4%196,867 2.647,270,049


Page 26


STRIP CENTER SUPPLY & DEMAND



2024 64,989 0.8% 0.9%70,864 0.98,130,731

2023 62,881 0.8% 0.9%72,849 0.98,065,742

2022 35,014 0.4% 0.6%50,799 0.78,002,861

2021 (3,709) 0% -0.1%(9,897) -7,967,847

2020 33,099 0.4% -0.7%(55,600) -7,971,556

YTD 11,700 0.1% -0.9%(71,058) -7,950,157

2019 48,695 0.6% 0.8%66,411 0.77,938,457

2018 113,096 1.5% 1.3%102,099 1.17,889,762

2017 51,663 0.7% 0.6%46,977 1.17,776,666

2016 34,548 0.4% 1.0%79,095 0.47,725,003

2015 34,322 0.4% 1.5%112,912 0.37,690,455

2014 40,508 0.5% 1.9%148,989 0.37,656,133

2013 58,221 0.8% 1.4%105,136 0.67,615,625

2012 20,078 0.3% 1.0%72,917 0.37,557,404

2011 0 0% 1.0%77,697 07,537,326

2010 0 0% 1.5%111,820 07,537,326

2009 88,353 1.2% -0.1%(9,742) -7,537,326

2008 280,048 3.9% 2.2%166,410 1.77,448,973

GENERAL RETAIL SUPPLY & DEMAND



2024 666,753 1.0% 0.9%588,834 1.167,061,117

2023 645,407 1.0% 0.9%577,374 1.166,394,364

2022 355,320 0.5% 0.6%380,920 0.965,748,957

2021 214,439 0.3% -0.1%(62,055) -65,393,637

2020 779,789 1.2% -0.1%(86,006) -65,179,198

YTD 425,382 0.7% 0%(18,911) -64,824,791

2019 291,898 0.5% 0.2%158,379 1.864,399,409

2018 564,629 0.9% 1.1%734,855 0.864,107,511

2017 810,181 1.3% 1.2%764,995 1.163,542,882

2016 306,386 0.5% 1.2%741,864 0.462,732,701

2015 272,980 0.4% 0.8%515,740 0.562,426,315

2014 (17,539) 0% 0.8%487,199 -62,153,335

2013 526,812 0.9% 1.5%956,424 0.662,170,874

2012 (304,972) -0.5% -0.1%(32,046) -61,644,062

2011 87,724 0.1% 0.9%560,848 0.261,949,034

2010 268,180 0.4% 0.8%518,748 0.561,861,310

2009 592,890 1.0% 0.3%165,235 3.661,593,130

2008 47,991 0.1% 0.6%390,154 0.161,000,240


Page 27


OTHER SUPPLY & DEMAND



2024 14,108 1.0% 0.9%11,944 1.21,358,450

2023 13,669 1.0% 0.9%11,778 1.21,344,342

2022 7,855 0.6% 0.5%6,412 1.21,330,673

2021 (263) 0% -0.7%(9,135) -1,322,818

2020 1,898 0.1% -0.6%(7,696) -1,323,081

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 28

Rent & VacancyDenver Retail

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 135 0.7% 4.7%$24.01 9,122,354 5.7% -0.1%

2023 134 1.6% 4.0%$23.85 9,215,959 5.8% -0.2%

2022 132 3.8% 2.3%$23.46 9,429,394 6.0% -0.2%

2021 127 -0.1% -1.4%$22.60 9,788,201 6.2% 0.5%

2020 127 -1.3% -1.3%$22.63 8,981,556 5.7% 1.4%

YTD 131 1.3% 1.3%$23.24 7,982,576 5.1% 0.8%

2019 129 2.5% 0%$22.93 6,753,176 4.3% 0.4%

2018 126 3.9% -2.5%$22.36 6,114,377 3.9% -0.6%

2017 121 5.3% -6.1%$21.53 6,913,878 4.5% -0.2%

2016 115 4.8% -10.8%$20.45 7,151,584 4.7% -0.5%

2015 110 3.9% -14.9%$19.51 7,830,869 5.2% -0.3%

2014 105 6.0% -18.1%$18.78 8,276,138 5.5% -0.7%

2013 100 3.9% -22.7%$17.72 9,305,927 6.2% -0.7%

2012 96 1.0% -25.7%$17.05 10,323,900 6.9% -0.5%

2011 95 0% -26.4%$16.88 11,065,407 7.4% -0.6%

2010 95 -2.1% -26.4%$16.88 11,841,392 8.0% -0.5%

2009 97 -3.2% -24.8%$17.24 12,577,546 8.5% 0.5%

2008 100 -1.3% -22.4%$17.80 11,615,923 8.0% 0.4%

MALLS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 144 0.6% 5.1%$34.42 1,165,754 7.0% 0%

2023 143 1.6% 4.4%$34.21 1,156,819 6.9% -0.1%

2022 141 3.7% 2.8%$33.67 1,173,886 7.0% -0.1%

2021 136 -0.2% -0.9%$32.46 1,190,853 7.1% 1.8%

2020 136 -0.8% -0.8%$32.51 893,906 5.4% 2.7%

YTD 140 2.0% 2.0%$33.41 674,197 4.0% 1.3%

2019 137 2.8% 0%$32.76 448,919 2.7% 0.6%

2018 134 3.3% -2.8%$31.86 350,073 2.1% -2.6%

2017 129 5.2% -5.8%$30.85 782,829 4.7% -1.0%

2016 123 5.5% -10.5%$29.32 924,472 5.7% -0.6%

2015 116 2.4% -15.2%$27.78 1,007,440 6.3% -0.5%

2014 114 7.1% -17.2%$27.13 1,076,045 6.8% 0.6%

2013 106 4.8% -22.7%$25.34 977,476 6.1% -0.6%

2012 101 1.3% -26.2%$24.18 1,074,427 6.8% 0.7%

2011 100 1.4% -27.2%$23.87 952,883 6.0% 1.4%

2010 99 1.1% -28.2%$23.53 725,877 4.6% -0.6%

2009 98 -2.5% -29.0%$23.27 820,831 5.2% -0.3%

2008 100 -1.7% -27.2%$23.86 841,355 5.6% 1.3%


Page 29


POWER CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 134 0.6% 4.4%$25.55 1,266,818 8.1% -0.3%

2023 133 1.5% 3.8%$25.41 1,307,938 8.4% -0.4%

2022 131 3.7% 2.2%$25.03 1,370,033 8.8% -0.5%

2021 127 -0.3% -1.4%$24.15 1,442,565 9.3% 0.5%

2020 127 -1.1% -1.1%$24.22 1,357,851 8.8% 1.0%

YTD 131 1.6% 1.6%$24.87 1,255,281 8.1% 0.3%

2019 129 2.6% 0%$24.49 1,202,325 7.7% 1.0%

2018 125 3.9% -2.5%$23.87 1,036,265 6.7% 1.1%

2017 121 5.4% -6.2%$22.97 862,226 5.6% -0.6%

2016 114 5.0% -11.0%$21.80 958,690 6.3% 2.6%

2015 109 3.9% -15.2%$20.76 554,994 3.6% -0.3%

2014 105 6.2% -18.4%$19.97 603,631 4.0% -1.7%

2013 99 3.6% -23.2%$18.81 853,567 5.6% -0.2%

2012 95 1.2% -25.9%$18.15 881,342 5.8% -1.0%

2011 94 0.1% -26.7%$17.94 1,016,596 6.8% -1.7%

2010 94 -2.4% -26.8%$17.93 1,231,034 8.5% -1.9%

2009 96 -3.6% -25.0%$18.36 1,502,961 10.4% 2.1%

2008 100 -1.3% -22.2%$19.05 1,129,557 8.3% 3.0%

NEIGHBORHOOD CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 131 0.7% 4.4%$22.01 3,456,826 6.8% -0.3%

2023 130 1.6% 3.7%$21.86 3,575,998 7.0% -0.4%

2022 128 3.7% 2.1%$21.52 3,753,936 7.4% -0.5%

2021 123 -0.2% -1.6%$20.75 3,974,955 7.9% 0.3%

2020 123 -1.4% -1.4%$20.79 3,844,966 7.6% 1.3%

YTD 127 1.2% 1.2%$21.34 3,609,737 7.1% 0.9%

2019 125 2.0% 0%$21.08 3,170,715 6.3% 0.5%

2018 123 4.0% -2.0%$20.66 2,890,616 5.8% -0.7%

2017 118 5.3% -5.7%$19.88 3,212,047 6.4% -0.2%

2016 112 4.9% -10.5%$18.87 3,315,557 6.7% -1.1%

2015 107 4.3% -14.6%$18.00 3,832,984 7.7% -0.1%

2014 102 5.3% -18.1%$17.26 3,849,392 7.8% -0.6%

2013 97 3.2% -22.2%$16.39 4,102,832 8.4% -0.9%

2012 94 0.7% -24.6%$15.89 4,513,868 9.3% -0.9%

2011 94 -0.3% -25.1%$15.78 4,910,055 10.2% -0.5%

2010 94 -2.9% -24.9%$15.83 5,148,637 10.7% -0.1%

2009 97 -3.2% -22.6%$16.31 5,150,008 10.8% 0.1%

2008 100 -1.4% -20.1%$16.85 5,090,161 10.8% 0.6%


Page 30


STRIP CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 128 0.7% 3.5%$21.14 458,291 5.6% -0.1%

2023 127 1.6% 2.9%$21.01 465,665 5.8% -0.2%

2022 125 3.8% 1.2%$20.68 476,991 6.0% -0.2%

2021 120 -0.2% -2.4%$19.93 493,640 6.2% 0.1%

2020 121 -2.2% -2.2%$19.96 487,256 6.1% 1.1%

YTD 124 0.5% 0.5%$20.52 481,067 6.1% 1.0%

2019 123 1.9% 0%$20.42 398,309 5.0% -0.3%

2018 121 3.6% -1.8%$20.05 416,025 5.3% 0.1%

2017 117 4.9% -5.2%$19.36 405,028 5.2% 0%

2016 112 4.0% -9.7%$18.45 398,717 5.2% -0.6%

2015 107 4.1% -13.2%$17.73 443,264 5.8% -1.1%

2014 103 5.4% -16.6%$17.03 521,854 6.8% -1.5%

2013 98 3.9% -20.9%$16.16 630,335 8.3% -0.7%

2012 94 0.6% -23.9%$15.55 677,250 9.0% -0.7%

2011 93 -0.7% -24.3%$15.46 730,089 9.7% -1.0%

2010 94 -2.9% -23.8%$15.57 807,786 10.7% -1.5%

2009 97 -3.1% -21.5%$16.04 919,606 12.2% 1.3%

2008 100 -1.3% -19.0%$16.54 815,325 10.9% 1.1%

GENERAL RETAIL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 136 0.7% 4.9%$22.91 2,730,837 4.1% 0.1%

2023 135 1.7% 4.2%$22.74 2,667,840 4.0% 0%

2022 133 3.9% 2.4%$22.36 2,614,710 4.0% -0.1%

2021 128 0% -1.4%$21.52 2,647,777 4.0% 0.4%

2020 128 -1.4% -1.4%$21.52 2,368,047 3.6% 1.3%

YTD 131 1.2% 1.2%$22.10 1,942,364 3.0% 0.6%

2019 129 2.9% 0%$21.83 1,512,978 2.3% 0.2%

2018 126 4.0% -2.9%$21.21 1,401,468 2.2% -0.3%

2017 121 5.3% -6.6%$20.39 1,579,094 2.5% 0%

2016 115 4.5% -11.4%$19.35 1,552,899 2.5% -0.7%

2015 110 4.2% -15.2%$18.53 1,988,377 3.2% -0.4%

2014 105 6.1% -18.6%$17.77 2,218,168 3.6% -0.8%

2013 99 4.3% -23.3%$16.75 2,735,875 4.4% -0.7%

2012 95 1.2% -26.5%$16.06 3,167,270 5.1% -0.4%

2011 94 -0.3% -27.3%$15.88 3,440,196 5.6% -0.8%

2010 94 -2.4% -27.1%$15.92 3,913,320 6.3% -0.4%

2009 97 -3.3% -25.3%$16.31 4,163,340 6.8% 0.6%

2008 100 -1.1% -22.7%$16.88 3,735,685 6.1% -0.6%


Page 31


OTHER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 133 0.8% 5.7%$22.52 43,828 3.2% 0.1%

2023 132 1.8% 4.9%$22.35 41,699 3.1% 0.1%

2022 130 4.0% 3.1%$21.96 39,838 3.0% 0.1%

2021 125 0.1% -0.9%$21.12 38,411 2.9% 0.7%

2020 125 -0.9% -0.9%$21.10 29,530 2.2% 0.7%

YTD 128 1.7% 1.7%$21.66 19,930 1.5% 0%

2019 126 1.6% 0%$21.30 19,930 1.5% 0%

2018 124 3.6% -1.5%$20.98 19,930 1.5% -5.8%

2017 120 5.2% -4.9%$20.26 72,654 7.3% 7.2%

2016 114 4.8% -9.6%$19.26 1,249 0.1% -0.3%

2015 109 4.2% -13.7%$18.38 3,810 0.4% -0.3%

2014 104 4.8% -17.2%$17.64 7,048 0.8% 0.1%

2013 99 3.2% -21.0%$16.84 5,842 0.6% -0.4%

2012 96 -0.2% -23.4%$16.32 9,743 1.0% -0.6%

2011 97 0.6% -23.2%$16.35 15,588 1.7% 0.1%

2010 96 -1.8% -23.7%$16.26 14,738 1.6% -0.7%

2009 98 -2.2% -22.3%$16.56 20,800 2.2% 1.8%

2008 100 -1.7% -20.5%$16.94 3,840 0.4% 0.4%


Page 32

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 -- - -- 172- $239.20 6.5%

2023 -- - -- 170- $236.54 6.5%

2022 -- - -- 166- $230.54 6.5%

2021 -- - -- 155- $215.97 6.7%

2020 -- - -- 156- $217.25 6.8%

YTD $463M292 1.5% $240.85$2,340,643 1646.0% $228.46 6.6%

2019 $1.3B627 4.0% $253.82$2,744,564 1626.2% $224.87 6.6%

2018 $1.5B733 6.9% $191.37$2,705,614 1546.5% $214.86 6.7%

2017 $1.3B639 5.5% $183.88$2,606,365 1486.2% $206.64 6.7%

2016 $1.3B647 4.2% $246.57$2,432,714 1416.6% $196.95 6.8%

2015 $1.5B747 6.7% $190.93$2,453,429 1356.8% $187.63 6.9%

2014 $1B698 5.8% $154.86$1,814,923 1257.1% $173.52 7.2%

2013 $1B653 5.6% $161.46$2,175,540 1097.5% $151.11 7.6%

2012 $857.9M544 4.9% $178.41$2,224,898 1067.8% $146.98 7.7%

2011 $499M409 3.7% $135.58$1,653,692 968.3% $133.85 8.1%

2010 $353.8M325 2.5% $106.97$1,313,359 918.2% $127.20 8.4%

2009 $475.8M232 2.0% $192.28$2,443,247 888.3% $122.61 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 -- - -- 153- $226.72 6.4%

2023 -- - -- 152- $224.39 6.4%

2022 -- - -- 148- $218.82 6.4%

2021 -- - -- 139- $205.11 6.6%

2020 -- - -- 139- $206.52 6.7%

YTD $8.6M4 0.9% $59.72$4,300,000 147- $217.40 6.5%

2019 $13M4 0.1% $556.77$3,240,000 1445.4% $213.89 6.5%

2018 $199.5M48 18.9% $146.99$6,235,218 1376.0% $203.58 6.6%

2017 $77.8M14 2.5% $265.98$7,073,874 1335.5% $196.23 6.6%

2016 $18.8M13 2.7% $347.66$3,128,340 1275.4% $187.54 6.6%

2015 $256.2M22 10.0% $403.54$25,623,040 1235.6% $182.37 6.7%

2014 $10M5 2.9% $59.88$3,339,333 1156.9% $170.42 6.9%

2013 $25.7M22 3.5% $394.84$3,211,750 107- $157.77 7.2%

2012 $302.9M30 10.5% $522.43$37,858,678 1058.2% $155.36 7.2%

2011 $3.5M2 1.4% $15.45$1,753,500 968.9% $142.32 7.5%

2010 $4.6M2 0.1% $568.43$2,309,250 929.0% $135.78 7.8%

2009 $232.1M2 3.8% $607.31$232,050,193 88- $130.71 7.9%




Page 33


POWER CENTER SALES





2024 -- - -- 156- $223.22 6.5%

2023 -- - -- 155- $221.01 6.5%

2022 -- - -- 151- $215.69 6.5%

2021 -- - -- 142- $202.39 6.7%

2020 -- - -- 143- $204.06 6.8%

YTD $56M21 1.6% $219.95$2,667,609 150- $214.55 6.6%

2019 $54.5M16 1.6% $228.15$3,632,667 1496.1% $211.97 6.6%

2018 $115.9M26 5.9% $126.61$4,456,769 1416.7% $201.74 6.7%

2017 $77M19 6.3% $102.32$4,529,721 1366.5% $194.28 6.7%

2016 $77M12 1.5% $330.01$6,417,705 1307.0% $185.95 6.8%

2015 $115.7M32 7.4% $186.27$5,507,476 1256.2% $178.39 6.8%

2014 $56.1M45 6.5% $241.11$5,606,457 1187.1% $168.47 7.0%

2013 $255.9M48 10.2% $226.95$10,234,735 1047.4% $147.74 7.4%

2012 $53.4M34 6.0% $160.40$4,105,307 1047.5% $148.50 7.4%

2011 $36M21 8.3% $168.54$6,008,302 9610.2% $136.84 7.7%

2010 $8M6 1.6% $34.38$1,602,320 92- $131.17 8.0%

2009 $3.9M1 0.6% $48.15$3,850,000 88- $126.09 8.1%



NEIGHBORHOOD CENTER SALES





2024 -- - -- 166- $210.36 6.6%

2023 -- - -- 164- $208.09 6.6%

2022 -- - -- 160- $202.92 6.7%

2021 -- - -- 150- $190.29 6.8%

2020 -- - -- 151- $191.71 7.0%

YTD $90.3M36 1.0% $236.83$5,313,670 1596.0% $201.40 6.7%

2019 $452.4M104 5.0% $202.52$5,378,625 1576.3% $199.00 6.7%

2018 $356.5M118 5.0% $155.89$3,593,605 1496.8% $189.12 6.8%

2017 $465.4M130 6.0% $167.70$4,214,449 1436.2% $181.93 6.9%

2016 $559.7M121 4.6% $250.40$4,862,459 1376.5% $173.57 7.0%

2015 $405.5M136 6.4% $146.63$3,407,641 1316.6% $165.85 7.1%

2014 $352.7M122 5.5% $144.21$3,235,976 1226.8% $154.58 7.3%

2013 $335.1M117 5.6% $145.19$3,285,706 1068.0% $134.77 7.7%

2012 $168.7M97 4.2% $103.76$2,677,483 1047.6% $132.49 7.8%

2011 $202.5M81 3.8% $148.45$3,214,150 957.3% $120.99 8.2%

2010 $112.2M44 2.3% $116.84$2,794,686 917.9% $116.07 8.4%

2009 $78.3M28 1.5% $117.14$2,900,870 888.0% $112.06 8.5%




Page 34


STRIP CENTER SALES





2024 -- - -- 178- $268.14 6.6%

2023 -- - -- 176- $265.29 6.6%

2022 -- - -- 172- $258.66 6.6%

2021 -- - -- 161- $242.52 6.7%

2020 -- - -- 162- $244.17 6.9%

YTD $15.2M10 1.3% $256.02$2,226,250 1715.0% $256.88 6.7%

2019 $80.8M36 4.2% $281.01$2,676,661 1677.1% $251.03 6.7%

2018 $78.5M46 4.9% $321.28$2,655,533 1635.9% $244.85 6.7%

2017 $86.9M54 6.6% $232.74$2,534,727 1577.2% $235.93 6.7%

2016 $89.9M54 7.0% $197.66$2,089,634 1507.1% $225.04 6.8%

2015 $110M58 8.4% $215.53$2,618,915 1417.2% $212.32 6.9%

2014 $72.8M62 7.2% $141.04$1,343,874 1307.6% $194.84 7.2%

2013 $47.7M43 6.4% $132.97$1,524,907 1118.1% $167.15 7.8%

2012 $59.9M48 7.0% $145.47$1,726,832 1068.4% $159.81 7.9%

2011 $25.6M27 3.4% $137.01$1,666,074 978.3% $145.43 8.3%

2010 $19.1M19 2.6% $147.16$1,853,711 917.5% $136.63 8.7%

2009 $15.7M14 2.0% $123.19$1,311,592 889.4% $131.80 8.8%



GENERAL RETAIL SALES





2024 -- - -- 184- $264.68 6.5%

2023 -- - -- 182- $261.52 6.5%

2022 -- - -- 177- $254.69 6.5%

2021 -- - -- 166- $238.32 6.6%

2020 -- - -- 166- $239.32 6.8%

YTD $292.9M221 2.1% $270.44$1,933,662 1756.0% $251.75 6.6%

2019 $711.8M467 4.9% $298.15$2,058,811 1726.0% $247.34 6.6%

2018 $703.4M494 5.8% $251.83$1,997,706 1656.5% $236.93 6.6%

2017 $581.7M420 5.4% $204.44$1,781,800 1586.1% $227.54 6.7%

2016 $576.1M447 4.7% $241.83$1,565,148 1506.6% $216.34 6.7%

2015 $573.8M499 5.9% $183.84$1,420,345 1426.8% $204.73 6.9%

2014 $523.4M464 6.5% $163.96$1,362,432 1307.2% $187.31 7.2%

2013 $377.7M422 5.0% $145.57$1,204,909 1127.0% $160.70 7.7%

2012 $273.2M335 3.6% $146.93$1,005,704 1077.6% $153.93 7.8%

2011 $231.4M278 3.2% $137.01$1,064,910 978.3% $139.32 8.2%

2010 $209.8M254 3.5% $106.20$989,106 918.3% $131.31 8.5%

2009 $145.9M186 2.2% $119.93$941,353 888.1% $126.53 8.7%




Page 35


OTHER SALES





2024 -- - -- 158- $234.80 6.6%

2023 -- - -- 156- $232.27 6.6%

2022 -- - -- 152- $226.39 6.6%

2021 -- - -- 143- $211.96 6.8%

2020 -- - -- 144- $213.16 6.9%

YTD -- - -- 151- $224.48 6.7%

2019 -- - -- 147- $218.12 6.7%

2018 $0.001 0.4% -- 139- $205.97 6.8%

2017 $16.8M2 6.2% $274.23$8,415,850 1366.2% $201.34 6.8%

2016 -- - -- 131- $194.92 6.8%

2015 -- - -- 126- $187.19 6.8%

2014 -- - -- 118- $175.06 7.1%

2013 $0.001 2.2% -- 103- $153.44 7.5%

2012 -- - -- 102- $151.62 7.5%

2011 -- - -- 94- $139.28 7.9%

2010 -- - -- 91- $134.37 8.0%

2009 $0.001 1.9% -- 88- $131.28 8.1%




Page 36

denver q2 2020 · 2020-07-28 · a kmart and several toys "r" us locations have also...

Documents