Colorado’s retail markets weather the e-commerce storm INSIDE A s we enter 2020, Colorado remains one of the most desirable markets in the country for investors tar- geting income-producing shopping centers. These investors typically are targeting cash flow, security and the vibrant Colorado economy. The city of Denver has experienced a well-documented expansion since 2010, growing by approximately 20% over that time, and countless employers followed suit. With the rise in cost of living, many people now are moving to secondary and tertiary markets around the state for the same quality of life motivations that attracted people to Denver. Colo- rado Springs has led the way with a rapidly grow- ing population, booming housing market (ranked No.7 Top Housing Market for 2020 by Realtor.com) and lower cost of liv- ing. Investors have taken notice and now increasingly are targeting sec- ondary and tertia- ry markets, where they can achieve more favorable yields than the Denver metro area, but still benefit from the expand- ing Colorado econ- omy. While the num- ber of investment sales and total dollar volume was down in 2019, capitalization rates remain near all-time lows and aver- age price per square foot are at all-time highs. This also is a trend we’ve seen nationally, which dem- onstrates the demand for shopping centers and their attractiveness as an investment even if supply has been limited. The market for shop- ping centers ended on a very strong note in 2019. So far, at least, we are seeing that momentum carried into 2020. In 2019, there were 88 transac- tions of income-producing mult- itenant retail properties in Colorado over $2.5 million. That is down from These six trends will impact commercial real estate space needs in the coming decade Retail predictions New ownership at a struggling Colorado Springs retail center sees creativity pay off Project insights PAGE 18 Retail construction skyrocketed in 2019, and three trends are shaping the city’s future Boulder spotlight PAGE 12 Please see Page 21 February 2020 Ryan Bowlby Senior associate/ associate director, National Retail Group, Marcus & Millichap PAGE 10 Drew Isaac Senior vice president, Marcus & Millichap Small-format retail centers with marquee tenants represent a sought-after retail property type, especially when located in trophy areas. This Starbucks-anchored, 7,570-square-foot property in Superior sold for $6 million, or $793 per square foot, in January 2019.