At A Glance

Market Overview

Denver’s retail sector bounced back from significant negative absorption during the previous quarter by recording positive absorption of more than 500,000 square feet during the third quarter. A substantial portion of third quarter absorption stemmed from the opening of the 330,000-square-foot Denver Premium Outlets in Thornton. Vacancy is currently at 5.2 percent, and has remained below 5.6 percent since early 2016. Year-over-year construction activity persists as slightly more than 1 million square feet are under development throughout the metro, with the Central, Northwest, and Northeast submarkets tallying the highest totals.

Third quarter investment activity in the Metro Denver retail sector totaled approximately $282 million, with an average price per square foot of $156/SF, as more than 60 properties transacted. The largest transaction of the quarter was the purchase of a Lifetime Fitness location in Littleton, which sold for $32.5 million, or $252/SF. This was part of a larger portfolio transaction of eight Lifetime Fitness locations around the country.

            2018_Q3_Retail_Denver_Report_Colliers 

 

Highlighted Trends

  • Retail investment activity during the third quarter totaled approximately $282 million, across 60 sales.
  • The Bureau of Labor Statistics reported an unemployment rate of 3.3 percent for Metro Denver during August 2018. The national unemployment rate is 3.7 percent.

 

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