CREJ

Page 24 — Retail Properties Quarterly — May 2021 www.crej.com n Pent-up demand. With an improv- ing economy, consumer confidence is building as Colorado residents are anxious to engage as a community once again. Nationally, the second stimulus package pushed incomes up 11.4% – the strongest income growth ever recorded – and personal savings stood at an annual rate of $3.9 trillion as of January, compared with $1.3 trillion a year earlier, sug- gesting consumers have more than $2 trillion of excess savings to spend. Middle- and high-income households have built up significant wealth and savings during the pandemic, report- ing a record high of $116.5 trillion in third-quarter 2020, a result of soar- ing stocks, home values and income. This incredible mix of factors cou- pled with President Joe Biden’s recent stimulus package of $1.9 trillion has set the stage for a massive, nation- wide consumer spending spree that we’re already starting to see unfold here in Colorado. In Denver and across our state, retail is transformative. While the sector’s outlook remains fluid, there are several indicators pointing to it being well positioned for a positive and thriving rebound. Most impor- tantly, brick-and-mortar stores are primed for a strong return with post- pandemic consumers here in Colo- rado projected to do more in-person shopping and spend more than ever at retail locations. s McCarthy Continued from Page 4 benefit from less competition due to the permanent closure of local res- taurants. Mall consolidation will continue along with repositioning to distribu- tion centers/data warehouses and raze/redevelopment to mixed-use projects with a focus on multifamily. Lifestyle, open-air and power centers will draw interest from yield-focused shopping center investors. n High-quality, well-located proper- ties command premium pricing. Offer- ings of single-tenant properties with strong fundamentals and high vis- ibility strip centers along major cor- ridors with either credit tenants or below-market rents will continue to see the most competition and thus strongest pricing. s drew.isaac@marcusmillichap.com Isaac Continued from Page 8 can file a Form 3115 method change with the IRS to retroactively change depreciation methods and catch up depreciation amounts to the current tax year. A method change could apply to multiple assets and be paired with a cost segregation study for larger assets. Taxpayers might qualify for addi- tional relief under the CARES Act – including restored net operating losses carryback provisions and the business interest deduction limita- tion. There are factors that could impact eligibility for certain assets, so working with a tax professional is important. n Next steps. If your entity quali- fies for accelerated depreciation deductions or other tax savings, it could benefit from working with a consulting professional to locate and claim available opportunities. s Aaron Coffeen, Moss Adams tangible asset incentive services senior, contrib- uted to this article. chris.l ’heureux@mossadams.com jackie.noland@mossadams.com derek.woodworth@mossadams.com L’Heureux Continued from Page 18 according to Downtown Partnership. The rebound post-pandemic is hap- pening quickly as downtown commer- cial asking rents are up $2 per sf in the first quarter. While the pandemic fundamentally changed our world, Colorado Springs continues to be an attractive place to live, work, play and invest. The popula- tion of Colorado Springs is increasing 1.7% annually, which is more than double the national average. The hous- ing market continues to be on fire. In February, the average home sales price was $408,000. Colorado Springs’ job market is rebounding; the market’s unemployment rate was 12.6% in April 2020 and has dropped just a year later to 7.1%, according to the Bureau of Labor and Statistics. The quick recov- ery of the job market and the increas- ing population of Colorado Springs will support the continued construction of retail properties. Overall, Colorado Springs continues to see strong fundamentals. New proj- ects are drawing national attention and captivating regional residents. The job market has proved resilient, which combined with the strong housing market is helping to boost economic recovery. All of this, coupled with the announcement that Southwest Air- lines is now serving Colorado Springs as of March, means The Olympic City is truly taking off. s whitney.johnson@cbre.com Johnson Continued from Page 6