Page 2
— Retail Properties Quarterly — September 2015
CONTENTS
Letter from the Editor
S
trong retail fundamentals
continue in Colorado – posi-
tive net absorption, declining
vacancy rates and increased
asking lease rates, along with
positive employment and popula-
tion growth. Jason Schmidt from JLL
takes an in-depth
look at these fun-
damentals and
market statistics on
Page 4.
However, there
are some concerns
that go along with
these fundamen-
tals. The Denver
retail vacancy rate
is the lowest it has been in a decade,
according to CBRE, an indicator that
supply and demand are unbalanced.
“To get back to an equilibrium, we
have to create more new construc-
tion,” said Daniel Miller, senior vice
president, brokerage and retail ser-
vices with CBRE. “There is a lot of
demand for retail that is chasing few
opportunities.”
The problem with creating more
retail spaces is that construction
costs are high. While the success-
ful retail market will keep attracting
new tenants, the state may reach a
point when national retailers start
reconsidering Denver as an ideal
location because of limited supply
and high construction costs.
Although, fitness centers seem to
have no problem finding or building
new retail space, paying higher rents
and thriving in Colorado. The com-
petition between larger established
fitness clubs and new smaller spe-
cialized studios is heating up. Find
out why fitness is booming in retail
centers throughout Denver in the
cover story.
Urban infill and transit-oriented
projects are having more of an effect
on the retail industry at existing and
future rail stations. Find out what the
challenges and opportunities are for
these developments in Tim Gonerka’s
article on Page 10.
Proper landscaping and adding par-
klets to businesses and retail centers
can have a big impact on whether or
not customers visit and spend time at
retailers. Nicole Stone and James Shaf-
fer discuss these topics on Page 17.
Thank you to everyone who con-
tributed articles, met for interviews
and helped create a publication
packed with information on the
present state of Colorado’s retail real
estate market. Without the help of
these industry experts, this special
section would not be possible.
As you read this publication, please
contact me with thoughts about arti-
cles and ideas for upcoming issues
of Retail Properties Quarterly.
Thanks for reading,
