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Page 14 — COLORADO REAL ESTATE JOURNAL — January 21-February 3, 2015
Colorado
I t has been another posi-
tive year for markets
throughout Colorado’s
Western Slope. Commercial
and residential sales and leases
were up in most markets and
vacancies were extremely low,
which has helped fuel apart-
ment and condominium activ-
ity. We interviewed each of our
partners and have the following
to report:
Aspen/Snowmass. Activ-
ity has not only rebounded
from the recession but also has
already surpassed many valu-
ations and sales volumes when
the market last peaked in 2007.
Apartment vacancy rates are
less than 2 percent, while retail
and office vacancy rates from
Aspen/Snowmass to Carbon-
dale average 7 percent and 10
percent, respectively, and are
expected to lessen. Cap rates
are running from 3 percent to
6 percent. Unemployment is
virtually nonexistent and a tre-
mendous construction surge
is anticipated in the spring of
2015. – Craig Rathbun, CCIM
Buena Vista/Salida. 2014
brought a slight increase in
commercial sales, however, due
to store closings by national
franchises, there are vacancies
of prime commercial property
on the U.S. Highway 50 cor-
ridor. There are very few avail-
able commercial spaces in the
downtown Salida area and a
few spaces in downtown Buena
Vista. The construction industry
has enjoyed a busy 2014. Tour-
ism is up by 18 percent over
2013. A steady increase in all
commercial markets is expected
for 2015. – Jeff Post, GRI
Breckenridge/Frisco/Silver-
thorne. Whole Foods and the
Rio Grande opened in Frisco,
indicating the Summit County
economy is back. A new Frisco
retail development has started
construction, including a signa-
ture Starbucks store. Lodging,
retail and restaurant sales are
surpassing prerecession levels.
The vacancy
rate in Breck-
enridge is
below 2 per-
cent. Lack
of commer-
cial inven-
tory for sale
has become
problematic
and contrib-
utes to high
commercial
real estate
prices. – Dar-
ren Nakos,
CCIM, and
Jack Wolfe
Durango/Cortez. The com-
mercial market is just now start-
ing to react to the improved
business and economic climate.
Two new hotels announced
plans to build. Discount Tire
is building in the Durango
Walmart Center and Tractor
Supply recently opened. Addi-
tional good news is that there
are currently 19 commercial
properties under contract total-
ing over $11 million. Volume
was down slightly from $24.9
million to $18.7 million.
Commercial land sales
declined in number and volume
of sales. – Don Ricedorff, CCIM
Glenwood Springs. All of
the remaining recession com-
mercial properties were sold
in 2014. Fourteen commercial
properties sold at an average
of $122 per square foot. Lease
rates dramatically rose in 2014,
finishing at around $16 per sf.
Currently, there is less than 5
percent vacancy. The residential
market is on fire, and with the
lack of inventory, speculative
builders are very active. New
retailers are entering the mar-
ket, which will continue the rise
in lease rates, and at least two
apartment projects will break
ground in 2015. – Scott Dillard
Grand Junction. The annu-
al gross sales volume in Mesa
County for 2014 was $719.47
million vs. $687.11 million in
2013. Com-
mercial sales
had a slight
rise with 71
transactions
in 2014 with
an average of
$83.57 per sf
vs. 67 transac-
tions in 2013
with an aver-
age of $93.43
per sf. The
median price
of homes
in 2014 was
$190,000 vs. $180,000 in 2013.
A total of 2,429 homes sold in
2014 with an average of 121
days on the market, compared
with 2,407 homes in 2013 with
119 average days on the market.
– Ben Hill
Gunnison/Crested Butte.
Commercial activity rebounded
in 2014. Transactions were up
79 percent and volume more
than doubled. The number of
sales was the highest since 2007.
Prices increased, sales tax rev-
enue was up significantly and
building permits increased.
For 2015, we expect new con-
struction to come back stronger
and demand for commercial
properties to increase. Com-
mercial land sales also should
increase. The local economy
should continue its strong
recovery with our new wave of
tourism. – Jim MacAllister, GRI
Monte Vista/Alamosa. Com-
mercial sales transactions were
up 50 percent in 2014. Prices
have stabilized, but lease prices
are still low. The availability of
vacant land, especially on the
west end of Alamosa along the
Highway 285 corridor, is nearly
nonexistent. The fourth quar-
ter saw an increased amount
of investor/developer activity.
Many of these are franchisees
looking to expand into Ala-
mosa or the surrounding San
Luis Valley, a good indicator
that 2015 will see continued
commercial sales activity and
improved lease prices. – Preston
Porter and Mike Porter
Montrose/Delta. Montrose
County was up in 2014 with
55 sales, compared with 48 in
2013. Commercial property
saw activity on the lower price
points. Currently, there is less
inventory on all improved
properties. Vacant land is flat.
Delta County is mixed and saw
signs of improvement but is
now seeing impacts from area
mine and dairy closings. Buyers
were either end users who have
a definite need for a particular
property or investors looking
for a steal. The 2015 forecast
for Montrose County is up and
the forecast for Delta County is
down. – John Renfrow
New Castle/Silt/Rifle/Para-
chute. Commercial sales vol-
ume jumped in 2014, though
the number of transactions
decreased from the prior year.
There were16 transactions total-
ing $19.7 million. Commercial
leasing activity also picked up
during 2014 with an accelerated
absorption of warehouse, retail
and office space in western
Garfield County, most notably
in Rifle. The outlook for 2015
remains mixed with increased
absorption and declining sup-
ply as a result of the improving
economy overall. – Joe Carpen-
ter
Pagosa Springs. Real estate
sales volume was up 12 per-
cent from 2013 with an increase
in commercial transactions and
new developments entering the
pipeline. Single-family sales
were up 5 percent. 2015 should
bring continuing improve-
ments to the commercial sector
as homebuilding activities con-
tinue to grow and additional
improvements at Wolf Creek
Ski Area are completed. Pagosa
Springs is improving infrastruc-
ture, supporting new geother-
mal projects and recruiting new
businesses to the community.
– Mike Heraty, GRI
Steamboat Springs/Craig.
2014 was a great year compared
with the last five. Availability
of commercial was low and it’s
only going to get tougher. Office
vacancies were low and retail
was active. Industrial ware-
house units are hard to find,
especially those priced under
$400,000. Rentals are nonex-
istent. Residential speculative
homes are coming out of the
ground again. The 2015 forecast
for the Steamboat Springs mar-
ket is that all activity is definite-
ly going to continue, making
2015 another outstanding year.
– Ron Wendler, GRI
Telluride. The commercial
market in Telluride has con-
tinued at the rapid pace set in
2013. As a result, inventory is
shrinking. A favorable review
by the planning commission of
the Hotel Ajax on east Main
Street will bring balance to six
blocks by having the historic
Sheridan Hotel on one end and
Hotel Ajax on the other end.
We wish the owner/developers
the best of luck, as this will be
a huge asset to Telluride. Over-
all, the market is very positive,
which is a welcome relief from
the 2009-2012 down period. –
Dirk de Pagter
Vail/Avon/Beaver Creek.
2014 had an increase in infra-
structure and public improve-
ments that helped spark retail
and restaurant traffic. Vail had
a 98 percent occupancy rate
with strong tax income from
increased bookings and lease
rates on a steady rise. Residen-
tial sales also strengthened and
global business was up consid-
erably. Down-valley remained
ripe for expansion with attrac-
tive light-industrial rental rates
due to its desirable location
near the Eagle County Regional
Airport. This activity should
continue in 2015. – Onie Bulduc,
CCIMs
Scott Dillard
Vice president,
Rocky Mountain
Commercial Brokers,
Basalt
John Renfrow
President, Rocky
Mountain
Commercial Brokers,
Basalt