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Page 8 — Retail Properties Quarterly — May 2017
O f all the asset classes, the
retail market consistently
seems to be subject to the
most changes. The rise of
online shopping, the ease of
Amazon and the power of social media
have made it evenmore challenging
to get a product that's just right for the
market, regardless if it is soft good, hard
good or food.The internet has provided
consumers with lots of options and the
ability to compare prices in a matter of
seconds.This has forced the brick-and-
mortar stores to focus on the shopping
experience and the synergy of who
your next-door neighbors are and what
they are selling.
The good news for landlords is while
the ease of internet shopping is grow-
ing, the likes of Amazon also are dem-
onstrating the value of brick and mortar
for some store concepts. However,
even with all that inmind, the basic
fundamentals of retail real estate have
remained largely the same – location
and economics.There is still a large
population of consumers who want to
touch and feel before buying as well as
those who really appreciate the value in
the local or special retailer.
In Boulder we are experiencing the
gamut with box store closings, national
retailers coming and going, local stores
modifying their concepts all while the
vacancy rates still remain healthy at
less than 9 percent.
With the emphasis on local retailers,
outside of Twenty Ninth Street mall,
Boulder still has felt the effects of the
junior box stores and national chains
closing their doors.
That list includes
Sports Authority
andWhole Foods
plus smaller stores
like Crocs, American
Apparel and the Flip
Flop Shop on the
Pearl Street Mall,
in addition to sev-
eral other national
chains shuffling in
theTwenty Ninth
Street mall shopping
district.
However, because change is the
constant in the retail world, it means
there are always new opportunities
for the next retailer to make its mark.
Downtown Boulder is no exception
with exciting national retailers and
concepts opening their doors in down-
town Boulder for the first time, includ-
ing Capital One Café, Experimac Boul-
der, Le Pops, North Face, Odd Molly,
Eurika and Elison.
Boulder also is wit-
nessing a national
trend in which some
local or existing
retailers are feeling
the need to change
with the times and
reinvent themselves
or add more loca-
tions to better serve
the marketplace. For
example, Full Cycle,
a longtime Boulder bike shop, is under-
going a remodel to add a café serving
wine and beer. Other local retailers try-
ing to adapt to the changing retail cli-
mate include Poshsplat, Ku Cha House
of Tea, Fjallraven, Alpine Modern Café,
Boulder Cycle Sport , JohnAtencio jew-
elers and Lucky’s Market.
Away from Boulder’s more frequented
retail shopping areas isThe Hill, a
small area across from the University
of Colorado campus that is always
struggling to find the right mix, but big
changes underway could mean greater
long-term stability.Yes,The Sink, Illegal
Pete’s, Starbucks and 7-11 have demon-
strated they can survive the dormant
four months when the students van-
ish, but the list is few and far between.
However, there are three hotel projects
in the planning department that could
become game changers for the stu-
dents and surrounding neighbors. One
of the hotel concepts will tear down the
tired University Hill shopping center at
Broadway and University and replace it
with a 160-roomhotel including some
retail/restaurants space.The University
of Colorado has its own hotel and con-
ference center planned near Broadway
and Grandviewwith 140 rooms.The
smallest addition will be local devel-
oper/owner with plans to convert the
University Inn to a 45-room boutique
hotel in betweenThe Hill and down-
town area along Broadway.
No question a changing landscape
is occurring in Boulder’s retail market,
but the positive news is when one door
closes, it does not take long for a new
door to open. Local boutique stores still
are the favorite, but with the increase in
rents and the attractive Boulder demo-
graphics, national retailers are look-
ing for those opportunities to find a
missing void for shoppers.
Vacancy rates appear to be trending
slightly upward for the balance of the
year within the city limits of Boul-
der with a certain spike to occur on
The Hill once those hotels are under
construction. s
Becky Callan
Gamble
President, Dean
Callan & Co., Inc.,
Boulder
Market Update
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Beau Gamble
Broker, Dean Callan
& Co., Inc., Boulder
We are experiencing the gamut with box
store closings, national retailers coming
and going, local stores modifying their
concepts all while the vacancy rates still
remain healthy at less than 9 percent.