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Page 2 — Retail Properties Quarterly — November 2018 www.crej.com Contents Letter from the Editor T wo major projects dominated the third-quarter Denver mar- ket reports from several local commercial real estate firms. First was the completion of Denver PremiumOutlets, an outlet mall inThornton that was delivered in September.The second was the largest project under construction, the 9th & Colorado mixed-use redevelopment, located on the former UCHealth Sci- ences Center. During the third quarter, Denver saw 561,000 sf of retail space delivered, which included the 328,000-sf Denver PremiumOutlets, and was the great- est quarterly total of this business cycle, according to CBRE’s report.Thanks, in part, to Denver PremiumOutlets being 96.1 percent preleased, absorption for the quarter was 384,808 sf.This puts the year-to-date total at 339,256 sf – compared to the third-quarter 2017 year-to-date net absorption of nega- tive 36,497 sf, according to CBRE. Other notable deliveries in the third quarter includedTarget’s small-format location in downtown Denver, a 50,000-sf Hobby Lobby inThornton and four buildings totaling 42,000 sf at Corners atWheat Ridge. Going forward, there are 73 buildings, or 1.3 million sf, under construction, of which 68 percent of the space is preleased, according to AvisonYoung’s third-quarter report.The largest of these projects is the 26-acre 9th & Colorado project that has the potential to add 235,000 sf of retail space, 100,000 sf of office space and 900 multifamily units to the central submarket. Another retail project getting attention is Mar- ket Station, at 1601 Market St. in down- town Denver. Also a mixed-use project, this one will bring 85,000 sf of retail, 90,000 sf of office and 225 apartments, according to the report. Despite all this activity, the pipeline still remains under the prerecession levels.To that point, an Urban Land Institute EmergingTrends report recently identified that Denver has lost the most retail sf per capita in the nation in the last decade. On Page 20, John Rebchook examines how this number is a reflection of our retail mar- ket not keeping pace with our growing population. Following the adage that retail fol- lows rooftops, Denver’s demographics seem to support calls for future retail. Marcus & Millichap’s five-year popula- tion growth puts the city at 1.2 percent annual growth.The city has one of the lowest unemployment rates in the nation, and the metro area has seen 2.5 percent job growth, while the U.S. aver- age sits at 1.6 percent, according to the report. This activity doesn’t seem to be lost on investors, whose interest in Den- ver is palpable. In the third quarter, 27 retail properties sold for a total of $228.7 million, to bring year-to-date sales to $660.7 million, a 12.4 percent increase from the same time last year, according to CBRE’s report. Michelle Z. Askeland maskeland@crej.com 303-623-1148, Ext. 104 Projects garnering buzz Retail news Jennifer Hayes Private capital retail sector: What are we selling? Mitch Veremeychik The changing buyer profile of retail properties Zach Wright Important topics investors are keen to discuss Ryan Bowlby and Drew Isaac Springs retail activity brings bustling atmosphere Logan C. Harrison A guide to Colorado-specific laws in retail leases Heather Park Meek Joint employer definition facing renewed scrutiny Mark D. Nelson Sears bankruptcy leads industry to a crossroads Danaria Farris McCoy Retail reboot: Omnichannel needs brick and mortar Bruce McLennan Rebchook Real Estate Corner John Rebchook How rocky is the Colorado grocery business? Edward Dittmer, Stephanie Hughes and Erin Stafford Help your tenants establish a realistic move-in date Nicole Kawulok Contractor challenges in this strong economy Mike Willingham Developers tap into tech to improve project success Chris Arnold 4 6 8 10 12 14 16 18 19 20 21 22 23 24 COLLIERS INTERNATIONAL 4643 South Ulster Street | Suite 1000 | Denver, CO 80237 P: 303 745 5800 | F: 303 745 5888 | www.colliers.com/denver This document has been prepared by Colliers International Denver for advertising purposes only. The information contained herein has been obtained from sources we deem reliable. While we have no reason to doubt its accuracy, no warranty or representation is made of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice. WELCOME Colliers International would like to OUR NEWEST RETAIL TEAM MEMBER LANCE EBERHARD Broker | Retail Division +1 720 833 4636 lance.eberhard@colliers.com Lance specializes in landlord and tenant representation throughout the Colorado market with a focus in the retail sector. His expertise in the retail realm focuses on bringing the best possible service to his clients. This includes handling transactions that vary from retail leasing, long-term ground leases, build-to-suit deals, and land acquisition/disposition.