2018 Q4 Denver Retail Market Report

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At A Glance

Market Overview

Denver’s retail sector finished 2018 with strong fundamentals recording approximately 385,000 square feet of positive absorption, increasing asking rental rates and vacancy at 4.7 percent. Significant absorption in the second half of 2018 brings total annual absorption to just over 720,000 square feet. These occupancy gains have compressed the overall vacancy rate to 4.7 percent, decreasing 20 basis points year-over-year. Overall average asking rental rates increased 91 cents year-over-year to a record setting $17.96/SF. Despite over one million square feet of retail product delivered throughout 2018, development activity remains robust with 1.1 million square feet under construction.

Fourth quarter investment activity in the Metro Denver retail sector totaled approximately $196 million, with an average price per square foot of $175/SF, as more than 40 properties transacted. The largest transaction of the quarter was the purchase of a community shopping center in Glendale, which sold for $30 million, or $384/SF. The property was 100 percent leased to PetSmart and Bed, Bath & Beyond.

            Retail_MarketIndicators_Q42018 

 

Highlighted Trends

  • Retail investment activity during the fourth quarter totaled approximately $900 million, across 170 sales.
  • The Bureau of Labor Statistics reported an unemployment rate of 3.3 percent for Metro Denver during November 2018. The national unemployment rate is 3.7 percent.

 

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2018 Q4 Denver Retail Market Report

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