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Page 10 — COLORADO REAL ESTATE JOURNAL — February 18-March 3, 2015
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Greater Denver
“What I would tell you is that
2013 was one of the most active
markets we have ever seen in
recent memory,” Lyons said.
“We sold a lot of stuff,” he said.
“When it came to 2014, we had
soldsomuchstuff in2013 therewas
just not that much left to trade.”
In 2013, investors were search-
ing for assets that provided a high
yield.
“Bonds were expensive, interest
rates were low and it was the per-
fect time to invest in real estate,”
Lyons added.
Lyons said based on discussions
with colleagues across the country,
Denver followed national trends in
both 2013 and 2014.
“Every market across the coun-
try slowed in 2014 from 2013 and
Denver was no exception,” Lyons
said.
For sellers, the benefit of the
shortage of properties was that
prices were higher.
“Last year, we saw record-low
cap rates on a number of assets,”
Lyons said.
He said cap rates fell “pretty
much across the board,” whether
they were for grocery-anchored
centers, large destination retail cen-
ters or strip centers.
“On just about every one of our
offerings we received multiple
offers,” Lyons said.
He said that he expects more of
the same in 2015, with the excep-
tion that occupancy levels will rise.
At the endof last year, the overall
vacancy ratewas 6.5 percent, about
the same as at the end of 2013,
according to CBRE.
“Given that there is not that
much construction underway, I
would expect occupancy rates to
rise this year,” Lyons said.
Rental rates also will continue to
rise, especially in strong markets,
such as near ParkMeadows, Cher-
ry Creek, along the U.S. 36 corridor
and in Boulder.
“It goes without saying that
downtown Denver will also do
well this year,” Lyons said.
“There is a lot happening in
LoDo and around Union Station,
which is generating a lot of buzz,”
Lyons said.
Indeed, CBRE pointed to the
announcement that Whole Foods
will open a 56,000-square-foot store
in downtown as one of the retail
highlights of last year.
The Whole Foods will be the
retail anchor for the Class A 17W
apartment community being
developed by the Holland Prop-
erty Group.
One thing that hasn’t yet
boosted retail sales in Colorado
or the nation is low gas prices,
Lyons said.
He noted a “disappointing”
national retail report that was
released in mid-January.
“When we sit down and talk
to retailers and investors, they
think it will take some time for
low gas prices to trickle down
to consumer spending,” Lyons
said.
“People don’t seem to be
using their excess discretionary
dollars to go out and buy a new
TV or a new car. At least not yet.
That is something we are keep-
ing our eyes on.”s
Graph showing retail sales volume and lease rates in the Denver area
Graph showing retail lease rates and vacancy rates