Colorado Real Estate Journal - December 2, 2015
A 7,500-square-foot inline retail building in New Windsor Marketplace changed hands in a $2.6 million transaction. Wisbon LLC paid the equivalent of $346.67 per sf for the building in an off-market deal handled by CBRE brokers Jon Rue, Blake Craig, Julius Tabert and Mike Eyer. The seller, Apache Retail 1, leased back a single vacant space of 2,300 sf for a year, which increased the net operating income and helped achieve strong pricing, according to Craig. There is a letter of intent for that space. Located at 1530 Main St. in Windsor, the building is adjacent to King Soopers. Tenants include Dunkin’ Donuts, Little Caesars and Burke Cleaners. Other News There is strong demand for quality office space in Northern Colorado, Xceligent noted in third-quarter reports contained in Realtec’s quarterly newsletter. While the region’s overall office vacancy rate is 7.1 percent, vacancy in Class A product sits at 1.8 percent, Xceligent reported. Overall rental rates average $18.50 per square foot, and tenant improvement costs have reached an all-time high of $60 for standard finish, the report stated. Xceligent also noted that: • Northern Colorado’s retail market saw 127,576 sf of absorption in the third quarter, up substantially from negative absorption of 31,943 sf in the previous quarter. Greeley was the strongest market, with 48,350 sf of absorption, followed by Fort Collins at 46,343 sf. The region’s retail vacancy rate dropped to 4 percent, and rental rates have increased to $15.56 per sf. New housing continues to drive demand for new retail. • Vacancy in the industrial market increased slightly for the first time in the last four quarters, reaching a total of 6.6 percent. Rental rates have stabilized, but are expected to remain on the high side for the next 18 to 24 months. There is a shortage of buildings from 30,000 to 40,000 sf. Not surprisingly, decreased oil and gas prices, and an increase in pipeline construction costs, have resulted in a slowdown in NoCo’s oil and gas industry.