CREJ - Office Properties Quarterly - July 2015
The market for Western Slope office space is on the uptick. We are seeing some of the larger holes in the market fill and rents are starting to stabilize. In 2015, the office market in the Grand Valley is showing some signs of life as well. The health care, professional services and nonprofit segments seem to dominate the office market activity. Home to an ever-growing baby boomer population and one of the best retirement playgrounds, it is no surprise that the health care industry continues to be a driving force in the Grand Valley. Recently, the Community Hospital broke ground on its new facility near G Road and 24 Road. Completion is scheduled for March. The hospital will serve as a catalyst for new activity as well as an anchor for the 24 Road corridor, and promises continued investment.
Additionally, St. Mary’s Regional Hospital’s defined presence and expansion continues to shore up confidence for developers and investors in the medical core. Around the corner from St. Mary’s on Patterson Road is a 50-bed transitional rehab facility breaking ground. In addition to the office space located within the hospitals, many growing home health care providers are eating up large office space in response to the aging baby boomer population. Most recently, we have noticed a surge in nonprofit activity. These companies are active in the market this year with a multitude of expansion needs. Some of these needs will be facilitated in new construction, which will be evident over the next couple quarters as plans come to fruition. Whether from education, social services or mental health facilities, there is strong demand for growth. All this activity has primed the market, and made it ripe for investment. We also have large projects such as the new City Market on 12th and Patterson Road, Walmart’s new community store and Colorado Mesa University’s expansion. Colorado Mesa University is growing through multiple expansion projects. The university is creating jobs for the area through its departments and the continued construction to its facilities. The expansion to the higher-education sector of the Grand Valley continues to release more professionals to the local market with needs for office. Grand Junction is becoming Colorado’s third-largest university town. (There are even discussions about changing the name of one of our prominent streets to University Boulevard.) The downtown district of Grand Junction renovations over the past few years created an appealing image and functionality to the area. We receive multiple inquiries from organizations wanting to open up shop in the downtown area to be within walking distance to all the venues available during and after business hours. With the summer swing here, tenants are looking to secure their downtown presence as spaces fill up. All these positive indicators show that the Grand Valley is diversifying its economic contributors and making the valley less reliant on any one industry. With a strong longterm outlook, investment opportunities are ripening.