retail market report...2930-2950 s havana st central 23,589 q2 19 lyft brc real estate richard...

Q1 2020

PREPARED BYBrandon Langiewicz,Partner

OUR NETWORK IS YOUR EDGE.

All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should carefully verify each item of information contained herein.

Hoff & Leigh | 2700 S Broadway #307 | Denver, CO 80113 | 720.572.5187 office www.hoffleigh.com/denver

RETAIL MARKET REPORT

Denver, CO


Market Key Statistics 2

Leasing 4

Rent 9

Construction 11

Under Construction Properties 13

Sales 15

Sales Past 12 Months 17

Economy 19

Market Submarkets 22

Supply & Demand Trends 25

Rent & Vacancy 29

Sale Trends 33

4/7/2020Copyrighted report licensed to Hoff & Leigh, Inc. - 689708.

Overview

835 K (114 K) 4.6% 2.3%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

The coronavirus pandemic is having an unprecedentedimpact on the national and local economies. Joblessclaims in Denver due to shutdowns jumped by 1,400% inone week. The health of commercial real estatefundamentals practically hinges on mitigation efforts toslow the spread of the virus. We will be updating ouranalysis as more information becomes available. Prior tothe coronavirus outbreak, the metro had strong economicmomentum, and the current report largely reflects theenvironment before the pandemic.

The Colorado governor ordered all bars, restaurants,theaters, and fitness centers close through mid-April,and possibly longer. The Denver mayor ordered theclosure of indoor dining at all restaurants and barsthrough May 11. Restaurants are still allowed to sell foodfor in-store pickup and delivery, and stores sellingessential goods are to remain open. With virtually allnon-essential businesses shuttered indefinitely, the fateof many smaller retail tenants hangs in the balance asthey rely on government intervention on a local andfederal level.

Denver's retail market was on solid footing entering2020, as vacancies were trending near historical lowseven with the growing market share of e-commerce andevolving consumer patterns. Store closures largelycontributed to absorption turning negative last year,including another Safeway shuttering, but well-located

assets continued to perform well.

Trade area demographics were buttressing strongconsumer demand as the metro has experienced robustgrowth in population, employment, and buying power thiscycle. These factors, coupled with limited new supply,resulted in Denver outperforming nearly all major metrosin the change of buying power per SF since 2010.

Although leading retail indicators have been encouragingthis cycle, development activity has been rather minimal.Denver's retail stock has only grown by about 5.5%cumulatively since 2010—near the national averagedespite far superior demographic trends. But developersappear to have made the right call to step on the brakesin recent quarters as the national economy, as well asDenver, encounter the growing likelihood of a recession.

Until 2019, retail rents in Denver were growing by about5% annually on average since 2016. Following thenational trend, rent growth has noticeably cooled fromgrowth rates observed earlier in the cycle. With non-essential retail virtually shut down throughout the state,rents will likely face tremendous downward pressure inthe near term.

Investment activity is expected to slow to a crawl in thecoming quarters due to the financial uncertainty of theeconomy coming to a hard stop.


Page 2

Overview

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$33.343.1%15,521,975Malls 3.6% 2,432 0 50,897

$24.697.4%15,833,289Power Center 8.1% 45,767 0 15,240

$21.116.4%50,014,961Neighborhood Center 7.8% 46,756 0 140,762

$20.595.6%7,979,105Strip Center 7.2% (9,680) 0 51,464

$22.052.7%64,575,881General Retail 4.2% 15,094 10,000 800,459

$21.381.5%1,321,183Other 1.8% 0 0 0

$23.064.6%155,246,394Market 5.8% 100,369 10,000 1,058,822

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

5.1%6.3%0.4%Vacancy Change (YOY) 8.8% 2009 Q3 3.9% 2018 Q4

783,9611,656,304(114 K)Net Absorption SF 4,871,749 2007 Q2 (218,728) 2020 Q1

1,440,2901,750,577835 KDeliveries SF 5,147,403 2007 Q1 651,559 2010 Q4

0.2%2.0%2.3%Rent Growth 5.8% 2014 Q4 -3.1% 2009 Q4

N/A$978.1M$1.4 BSales Volume $1.7B 2018 Q2 $335.4M 2010 Q3


Page 3

Leasing

Vacancies that peaked at 9% during the downturn werenear historical lows entering 2020. However, acoronavirus-driven shock to the retail market hasshuttered all non-essential stores in the state until mid-April at the earliest. Lost revenue in the coming monthscould force many tenants to permanently close theirdoors, unless both tenants, landlords, and lenders canget creative modifying leases and loans during this crisis.

With retail inventory nearly at full capacity at the start of2019, the vacancy rate expanded slightly during the yearfollowing a string of store closures. These closings werelargely a result of unprofitable national retailers that failedto evolve in the digital age rather than a perceivedweakness in Denver's retail market.

Sears was behind most of 2019's negative absorption.The 125-year-old retailer filed for bankruptcy at the endof 2019 and closed two stores in early 2019: a 150,000SF location in Lakewood, and a 130,000 SF Sears at theStreets at SouthGlenn. Both spaces were still on themarket at the start of 20Q1.

Safeway continued to plague the market after years ofstore closures throughout the state of Colorado. Thegrocery chain shuttered another big box location in2019—54,000 SF at Westminster Plaza in Westminster.

A Kmart and several Toys "R" Us locations have alsoclosed in recent years.

The top leases and move-ins of 2019 reflect the ongoingshift in consumer trends and where tenant demand is thestrongest. Four of the top seven move-ins belonged tofitness centers: Vasa Fitness (56,000 SF), Chuze Fitness(50,000 SF & 40,000 SF), and Prestige Fitness (38,000

SF).

As malls attempt to generate more foot traffic, they havefocused on experiential retail to draw consumers in.Urban Air, a trampoline park for children, isrepresentative of this emerging trend. In early 2019, thecompany opened a 36,000 SF location at Towne Centerat Brookhill in Westminster. By the summer of 2020,Urban Air will open a 50,000 SF location at theCornerstar shopping center in Aurora.

Limited new retail developments, coupled with a growingand highly educated, high-income population with alarge concentration of “big spenders” (the demographicaged 35–54 years), should continue to provide the retailsector with a much needed lift in the face of e-commerce driven headwinds.

Vacancies are concentrated in bad retail centers andhave not spread into the average retail center. Moreover,a concerted movement of households, wealth, andemployment to downtown submarkets have producedroutinely above-average rent gains in the Downtown andCherry Creek Submarkets, and vacancies in these areashave been razor thin for years. Centers and mixed-usedevelopments with retail components in these rapidlygrowing neighborhoods are thriving.

In other cases, retail in bad trade areas has often beenremoved from inventory or is undergoing renovations andin some cases, repurposing. With stronger demanddrivers to weather the new age of retail, and supply thathas only mirrored the national average despite superiordemographic and economic trends, the Denver retailmarket has enjoyed an atypical amount of resilience tothe effects of e-commerce.


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Leasing

NET ABSORPTION, NET DELIVERIES & VACANCY

VACANCY RATE


Page 5

Leasing

AVAILABILITY RATE


Page 6

Leasing

12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

Aurora Ret 78,464 0 0 0 0 0 78,464The Point at Nine Mile Station

West Ret 126,758 44,692 0 0 0 0 65,652Westland Plaza

Southwest Ret 194,620 39,040 0 0 0 0 57,838Bowles Crossing

Aurora Ret 72,172 0 45,794 0 0 0 45,794Aurora City Place

Northwest Ret 140,000 12,000 43,560 0 0 0 41,713Candelas Marketplace

Central Ret 95,763 7,754 0 0 0 0 37,864South Lowry Marketplace

Northwest Ret 40,000 0 0 0 0 0 36,923Downtown Westminster

Central Ret 34,500 0 0 0 0 0 34,5009th & Colorado

Southwest Ret 40,000 5,920 1,820 0 0 0 34,080River Point at Sheridan

Southeast Ret 64,736 0 0 0 0 0 33,171FlatAcres MarketCenter / Parker…

Southeast Outlying Ret 26,877 0 26,877 0 0 0 26,877Encore Castle Rock

Aurora Ret 71,438 0 (8,115) 34,065 0 0 25,950Center Tech Plaza

Northwest Ret 79,725 52,280 2,013 0 0 0 25,333Summit Square

Northwest Ret 25,091 0 0 0 0 0 25,091Northglenn Marketplace

Central Ret 45,800 21,638 24,162 0 0 0 24,162Village On The Park

Aurora Ret 61,737 23,649 23,287 0 0 0 23,287The Gardens on Havana

Northeast Ret 87,653 18,572 0 0 0 0 23,106Gateway Town Center

1,285,334 225,545 159,398 34,065 0 0 639,805Subtotal Primary Competitors

153,962,300 6,854,984 (363,192) 66,304 0 0 (753,365)Remaining Denver Market

155,247,634 7,080,529 (203,794) 100,369 0 0 (113,560)Total Denver Market


Page 7

Leasing

TOP RETAIL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

Streets at SouthGlenn South 131,201 Spirit Halloween Supersto… Phoenix Commercial… -Q3 19

University Towne Center South 56,378 - - SRS Real Estate Partn…Q2 19

Westminster Plaza Northwest 56,127 - - Crosbie Real Estate Gr…Q1 20

Hoffman Heights Shopping Center Aurora 48,015 - Cushman & Wakefield -Q3 19

Centennial Promenade South 44,300 Total Wine & More Western Retail Advi… -Q3 19

Westminster City Center Marketplace Northwest 42,900 Golf Galaxy - Brixmor Property Grou…Q1 20

Smoky Hill Town Center Southeast 40,000 Chuze Fitness - Cushman & WakefieldQ3 19

Aurora City Center * Aurora 39,421 24 Hour Fitness - DePaul Real Estate Ad…Q4 19

South Lowry Marketplace Central 37,864 Prestige Fitness David, Hicks & Lam… AXIO Commercial Real…Q2 19

Center Tech Plaza Aurora 34,065 Aurora Community School - DePaul Real Estate Ad…Q3 19

Tower Commons Northeast 30,000 - - Legend PartnersQ3 19

Sunrise Village Shopping Center * Northeast 29,727 Arc Thrift Stores of Colorado - Emerald Real Estate G…Q1 20

Aurora City Center Aurora 28,287 Empower High School Cresa DePaul Real Estate Ad…Q2 19

Towne Center at Brookhill Northwest 25,467 - - SullivanHayes BrokerageQ1 20

Northglenn Marketplace Northwest 25,091 - - -Q2 19

Northglenn Marketplace Northwest 25,091 Bed Bath & Beyond - SullivanHayes BrokerageQ2 19

Washington Plaza Northeast 25,000 Goodwill - TEL ManagementQ4 19

Southwest Commons * Southwest 24,594 Office Depot David, Hicks & Lam… Crosbie Real Estate Gr…Q2 19

Arapahoe Marketplace South 23,876 Molly's Spirits - CBREQ2 19

2930-2950 S Havana St Central 23,589 Lyft BRC Real Estate Richard Borga;Shortlin…Q2 19

The Gardens on Havana Aurora 23,287 - - AmCap Properties, Inc.Q3 19

Larkridge Northeast 22,814 Bassett Home Furnishings - Jordon Perlmutter & Co.Q3 19

Northglenn Marketplace Northwest 22,056 - - SullivanHayes BrokerageQ2 19

Jefferson Marketplace Southwest 20,430 - - Newmark Knight FrankQ4 19

Parker Hilltop Town Square Southeast 20,388 - - Newmark Knight FrankQ4 19

Abilene Market Aurora 20,000 - - SullivanHayes BrokerageQ1 20

Salem Square Aurora 19,995 - - Panorama Commercial…Q2 19

150 W 53rd St Northwest Denver 19,000 South Platte Trading Co - -Q2 19

Pinnacle Center Northeast 18,900 Jump Start Early Learning… - Antonoff & Company Br…Q2 19

Aurora City Square Aurora 18,884 - - SRS Real Estate Partn…Q1 20

Chambers Place Shopping Centre Northeast 16,000 - - CBREQ3 19

Huron Plaza Northwest 15,932 Denver Bouldering Club - Kamen RealtyQ3 19

Mission Plaza Aurora 15,636 - - SullivanHayes BrokerageQ1 20

Pine Tree West Plaza Southeast 15,273 Monarch Investments SRS Real Estate Pa… Trevey Commercial Re…Q3 19

Promenade at Castle Rock Southeast Outlying 15,000 - - David, Hicks & Lampert…Q4 19

Harbor Freight Tools/Dollar Tree South 14,626 Rare Finds - Cross Street Real Estat…Q2 19

NEC E 128th Ave Northeast 14,240 PetSuites - -Q2 19

Promenade at Castle Rock Southeast Outlying 14,000 - - David, Hicks & Lampert…Q4 19

1298 W Alameda Ave Upper South Central 13,750 Altus Traffic - David, Hicks & Lampert…Q2 19

8770 E Arapahoe Rd South 13,171 The Lofe @ Solera Salon - -Q1 20

*Renewal


Page 8

Rent

Retail rents posted average annual gains of nearly 5%from 2013-2018, one of the best performances out ofthe 50 largest metros nationally. Mirroring the nationaltrend, rent growth moderated further in 2019. Annualgains clocked in below 1% for the first time since 2011.Given current economic conditions, rent growth isincreasingly likely to continue slowing.

With new development controlled, big box space beingtaken off the market (sometimes via redevelopment),vacancies remain historically tight entering 2020. In thisenvironment, landlords should theoretically be able topush rents, especially when well-located space hits the

market.

Still, the top performers this cycle have been thesubmarkets with the strongest locations anddemographics. Where Metro Denver's rents havesurpassed last cycle's peak by 25% (one of the bestperformances nationally), rents in Downtown Denverhave eclipsed the peak of the last cycle by 50%, alsoamong the best out of more than 2,000 retail submarketsin the national index. Cherry Creek/Colorado Blvd andthe South submarkets have also produced robust growthas rents are 40% and 32% above the last cycle's highs,respectively.

MARKET RENT GROWTH (YOY)


Page 9

Rent

MARKET RENT PER SQUARE FOOT


Page 10

Construction

The Colorado Governor's stay-at-home order considersjobs in the construction industry as “essential or critical”,which would allow developers to move forward withprojects if they choose. Deteriorating economicconditions could keep upcoming groundbreakings onhold, and projects slated to deliver in 2020 must grapplewith the uncertainty of demand. Given the remarkablefluidity of the coronavirus outbreak, it is not out of therealm of possibility that construction jobs could eventuallylose their essential business designation.

A moderation in construction levels could not have comeat a better time due to the sudden stop of all non-essential retail activity. With many current projects likelyon hold for the near term, supply pressure could have anegligible impact on fundamentals.

Many developments in past years have been built forinternet-resistant tenants, including fitness centers,entertainment centers, and car dealerships. Annualdeliveries have been well below the historical averagethis cycle, and perhaps after record retail completionsfrom 2005–08, a respite was in store. This may havebeen a blessing in disguise for Denver's retailfundamentals as e-commerce had an outsized impacton consumer trends during the 2010s.

With the completion of the 330,000-SF Denver Premium

Outlets in Thornton at end of 2018, no further mall-styledevelopments were being pursued entering 2020. DenverPremium Outlets hosts an array of high profile tenants,including Kate Spade, Hugo Boss, and a Nike factorystore.

Developers are starting to blend in some significant retailcomponents to Downtown Denver mixed-usedevelopments. Continuum Partners is building almost90,000 SF of retail at its Market Station project, just afew blocks away from Union Station. Construction isexpected to wrap up in early 2020. Market Station willalso include 225 market-rate apartments and 95,000 SFof office space.

A similar project is slated to complete in 2021: A group ofdevelopers, led by The Rockies organization, is including75,000 SF of retail in a mixed-use development acrossthe street from Coors Field. In addition to retail, there willbe office and residential components, along with a hotel.

In Westminster, the city plans to redevelop theWestminster Mall site into a 108-acre multi-use towncenter, which will include a significant retail component.Multifamily developments with sizable retail componentsare now underway, and pure retail components are likelyto follow.

DELIVERIES & DEMOLITIONS


Page 11

Construction

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 Northeast 15 275 18,36156.7% 8 13,189156 5

2 Downtown 3 206 68,74716.1% 10 14,84233 1

3 Central 7 131 18,70791.5% 5 8,741120 4

4 South 5 106 21,261100% 1 19,396106 3

5 Southeast Outlying 6 93 15,42495.6% 4 11,63888 6

6 Northwest 9 83 9,27342.9% 9 16,58636 7

7 Southeast 11 69 6,30276.6% 6 17,80953 9

8 Aurora 2 46 23,125100% 1 16,69846 2

9 West 6 33 5,51971.5% 7 9,92524 10

10 Southwest 2 15 7,620100% 1 21,58615 8

All Other 0 - -- 11,748-

Totals 66 1,059 16,04364.0% 13,352678


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Under Construction Properties

66 1,058,822 0.7% 64.0%Properties Square Feet Percent of Inventory Preleased

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jun-20181601 Market St

88,500 1 Aug-2020Continuum Partners LLC

Continuum Partners LLC1

Oct-20181901 Wazee St

McGregor Square Retail75,500 2 Jan-2021

Hensel Phelps

McGregor Square2

Aug-2019Nec of Chambers Rd & 1…

70,000 1 May-2020Thompson Thrift

Thompson Thrift3

Mar-201918620 Green Valley Ranc…

65,000 1 May-2020-

Honig and Honig4

May-20193106 W County Line Rd

Alpine Buick49,996 1 Jun-2020

-

-5

Jun-20189th Ave

AMC44,000 - May-2020

Continuum Partners LLC

Continuum Partners LLC6

Sep-201914531 E Alameda Ave

Parkside@City Centre43,250 1 Jun-2020

Northstar Commercial Partners

-7


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Under Construction Properties

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Apr-20191251-1261 Glenarm Pl

42,240 - Jun-2020-

-8

May-20193106 W County Line Rd

Alpine Buick GMC41,000 1 May-2020

-

Alpine Buick-Pontiac-Gmc9

Aug-201913750 Grant St

38,000 1 Sep-2020-

-10

Dec-2018Castlegate Dr

37,897 1 May-2020Forum Real Estate Group

Town of Castle Rock11

Mar-2019Westminster Blvd And 92nd

Central Square34,500 1 Dec-2020

Sherman Associates, Inc.

Sherman Associates, Inc.12

May-20192896 Fairfax St

27,000 1 Jun-2020-

HM Capital13

Dec-2019Quebec St & Lowry Blvd

25,000 1 Dec-2020Confluent Development

Kelmore Development Corporation14

Jan-2020Wilcox St & First St

Festival Park Commons…22,000 1 Feb-2021

Castle Brae Development LLC

Confluence Companies15

Jan-2020Rolling Hills Plz

14,000 1 Aug-2020-

-16

Feb-202022986 E Smoky Hill Rd

Smoky Hill Crossing - Pa…13,200 1 Feb-2021

-

Scott W & Wendy B Baldensperger17

Jun-2019825 S Kuner Rd

12,862 1 Oct-2020-

Lamour18

Mar-20192000 S Colorado Blvd

Junction Food & Drink12,200 - May-2020

Lincoln Property Company

Lincoln Property Company19

Jun-20193599 Central Park Blvd

A Line Square12,000 1 May-2020

D H Friedman Properties Llc

-20

Jul-201956th Ave & Central Park B

Bldg F- Shops at Beeler…12,000 1 Jul-2020

Evergreen Development Co.

Andres and Catrina Pazo21

Jan-20194850 E 60th Ave

60TH & Vasquez11,956 - May-2020

-

Landon Enterprises22

Sep-201919585 Hess Rd

Country Meadows Squar…11,520 1 May-2020

-

Skott Katskee23

Sep-20198850 W 116th Cir

10,604 1 May-2020-

-24

Jan-20209750 Washington St

10,192 1 May-2020Trevey Commercial Real Estate

-25

Sep-2019Crystal Valley Pky

10,144 1 May-2020-

-26

Jun-2018Wadsworth & Byers

Wadsworth & Byers10,000 1 May-2020

-

HealthONE27

Mar-2020Parker Rd & Stroh Rd

Retail Pad10,000 1 Jul-2020

ServiceStar Development Compa…

ServiceStar Development Compa…28


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Sales

We fully expect investment activity to come to a standstillin the near term as the financial impact of thecoronavirus is assessed. Before the outbreak, severalmajor deals took place, driving sales volume that isgenerally on par with first-quarter figures from the pastseveral years.

After a somewhat quiet first half, investment activitypicked up in the second half of 2019. More than $1.2billion worth of retail assets traded, falling about $200million short of 2018's volume. Based on CoStar's PricingTrends, values continued to climb, albeit at a slowerpace than in past years. Cap rates tightened slightly, buthave generally remained in the mid- to high-6% rangethat has become the norm in the market.

The Kroenke Group dominated headlines in the finalquarter of 2019. The firm, owned by billionaire real estatemogul Stan Kroenke, acquired two shopping centerswhich turned out to be the biggest deals of the year.

In December 2019, Kroenke acquired the 218,000 SFMeadows Marketplace from Dallas-based InvescoAdvisers for nearly $58 million ($266/SF). The Lone Treeasset delivered in 1996 and was anchored by HomeDepot.

One month earlier, the billionaire investor paid just under$49 million ($457/SF) for the 107,000 SF BelleviewPromenade in Greenwood Village. Tenants included

Sotheby's International, Ocean Prime, and Bar Louie.

Like in many metros, fitness centers are fueling some ofthe biggest deals of the year. In September, Minnesota-based Life Time Inc. acquired a 110,000 SF health clubfrom Millice Group for $30 million ($273/SF). The buildingreceived $7 million in capital improvements in 2017,including a renovated lobby and cafe. The buyer willcontinue to operate the property as a health club.

One of the largest trades of 2019 was a California-based buyer's acquisition of a 45,500 SF fitness center inHighlands Ranch for $22.8 million ($500/SF). ACRECorporation, also based in California, sold the asset,which was fully leased by 24-Hour Fitness through 2035with rent escalations every five years, beginning in 2025.The reported cap rate based on current income andexpenses was around 7.4%.

Prior to 2013, 10% of Metro Denver's suburban retailstock was within a mile of a light rail station. By 2020,more than 30% of the retail stock will be within a mile ofa light rail station, an increase of 23 million SF. Thisassumes completion of the now under construction NLine and the southeast light rail extensions by 2020, inaddition to the W, A, R, B, and G Line extensions whichopened from 2013-19. For investors of existing retail, orthose pondering a redevelopment, there is a growingroster of suburban opportunities to consider.


Page 15

Sales

SALES VOLUME & MARKET SALE PRICE PER SF


Page 16

Sales Past 12 Months

636 6.2% $246 3.6%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $110,000 $2,812,210 $1,700,000 $30,000,000

Price Per SF $4.01 $246 $289 $3,683

Cap Rate 4.0% 6.2% 6.2% 9.9%

Time Since Sale in Months 0.1 6.0 5.9 12.0

Property Attributes Low Average Median High

Building SF 338 11,439 4,795 147,000

Stories 1 1 1 10

Typical Floor SF 338 10,181 4,414 147,000

Vacancy Rate At Sale 0% 3.6% 0% 100%

Year Built 1868 1975 1980 2020

Star Rating 2.5


Page 17

Sales Past 12 Months

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 500 S Cherry St1978 110,000 0% $30,000,000 $2739/9/2019 -

-2 Bldg C-E2000 55,554 12.6% $27,580,614 $496

8000 E Belleview Ave11/25/2019 -

-3 Meadows Marketplace1996 107,099 0% $25,962,873 $242

8477 S Yosemite St12/5/2019 -

-4 24 Hour Fitness2010 45,500 0% $22,750,000 $500

6830 E County Line Rd7/10/2019 7.4%

-5 Town Center Highlands…1996 55,807 0% $17,316,850 $310

9255 S Broadway6/28/2019 -

-6 Defy Denver1986 104,400 57.5% $16,444,900 $158

1400 S Abilene St9/25/2019 -

-7 Safeway2000 51,609 0% $16,383,490 $317

560 Corona St1/31/2020 5.1%

-8 Union Denver2017 68,000 0% $16,368,075 $241

1777 Wewatta St4/29/2019 -

-9 Alamo Drafthouse Cinema2018 35,512 0% $16,184,211 $456

4255 W Colfax Ave9/30/2019 7.4%

-10 8457-8467 S Yosemite St1997 72,481 0% $15,964,643 $22012/5/2019 -

-11 11051 S Parker Rd1994 61,810 0% $14,810,000 $2406/28/2019 -

-12 Shops B2002 104,725 0% $14,800,761 $283

40-100 S Abilene St2/14/2020 -

-13 Safeway1998 55,650 0% $14,750,000 $265

9229 E Lincoln Ave12/23/2019 5.2%

-14 1200 S Buckley Rd2003 57,560 0% $14,140,000 $2466/28/2019 -

-14 1200 S Buckley Rd2003 57,560 0% $13,250,000 $2309/12/2019 -

-15 Happy Canyon Shops1961 86,098 2.8% $13,219,596 $154

5000 E Hampden Ave4/17/2019 -

-13 Safeway1998 55,650 0% $13,010,000 $234

9229 E Lincoln Ave6/28/2019 -

-16 King Soopers2013 77,314 0% $12,970,801 $168

5070 S Federal Blvd4/24/2019 -

-17 7401 S Clinton St2002 16,705 0% $12,300,000 $7364/10/2019 5.7%

-18 Conifer Marketplace1984 86,658 0% $12,250,000 $141

10853 Hwy 2851/16/2020 8.9%


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Economy

Economic conditions changed drastically after thecoronavirus pandemic hit American shores. TheColorado governor announced a stay-at-home order forthe entire state effective March 26 through at least April11.

Under the Governor's order, residents may only leavetheir homes for matters concerning the health and safetyof the household, or for jobs deemed as “critical”.

Critical businesses to remain open include not onlygrocery stores and restaurants with to-go options, butalso marijuana dispensaries and, in Denver, breweries.

With a job location quotient near the national average forretail and leisure and hospitality, Denver is not overlyexposed to the hardest-hit sectors. Nevertheless,Denver International Airport is arguably the primaryeconomic driver for the region, generating more than $33billion for the state in a 5-year span.

Flights have been reduced by up to 90% by severalairlines. Although Denver will not be more affected thanmost major metros in this regard, it does rely heavily onin-migration to fuel its labor force growth and overalleconomy, metrics which are expected to decline sharplyin the coming months.

Denver's emergence as a bona fide technology marketthis cycle could help insulate it from the impact ofwidespread shutdowns. Tech employers typically allowthe flexibility of telecommuting, and many office-usingemployers have the capacity to facilitate a work-from-home transition. Office-using jobs in Denver have grownabove the national average the past five years at about3% annually.

Government employment has also been consistent, if notpedestrian, in terms of employment growth in the statecapital. The public sector has often been a stabilizingforce during past economic downturns. The governmentand professional and business services sectors were theonly nonfarm job sectors in Denver to grow at or abovetheir five-year average in 2019.

Although education and health services job gains werebelow their five-year average in 2019, it ranked as thethird-strongest employment growth sector behindprofessional and business services and government.Healthcare is seeing a major investment in the $1.3billion VA hospital in Aurora, the Denver HealthAdministration's new headquarters in South Midtown,

and Catalyst's 300,000-SF digital health facility in theRiNo neighborhood.

On the downside, oil and gas companies clustered inDenver's CBD are now faced with volatile oil prices thatplunged to 18-year lows in March. The last time oilprices were this weak in 2016, layoffs were widespreadthroughout the industry. This time, energy companies arefaced with dual threats: oversupply due to Saudi Arabiaand Russia posturing, and a precipitous fall in demandas the movement of people and goods becomesincreasingly restricted due to the coronavirus.

Even though Denver's overall employment growthshowed signs of a slowdown last year along with thenational index, it added tech jobs at an acceleratingpace. Employment in Professional, Scientific & TechnicalServices grew by more than 7% annually in 2019, one ofthe best growth rates in the country. Corporateexpansions and relocations by tech companies such asAmazon, Slack, and Conga drove employment gains andepitomize the trend of West Coast firms choosing toexpand in Denver for its robust workforce, quality of life,and cost of doing business.

Denver has been frequently lauded as a hot destinationfor young, educated job seekers throughout this cycle.Headwinds to this trend could come from housing costs,which are dramatically higher today for both renters andprospective owners. While home prices continue to climbinto the stratosphere (albeit at a slower rate than thepeak years of this cycle), apartment rent growth hasmoderated alongside elevated levels of construction,which may provide a relief valve for those consideringthe metro for its otherwise robust employment prospects.

Along with a young, highly educated, and growing laborforce, the FasTracks transit expansion is another sellingpoint. Transit-oriented development is taking holdthrough the metro as additional lines connect downtownto North Denver, Aurora, Southeast Denver, and theDenver International Airport.

Geographic isolation remains an economic liability insome respects. The geographic separation from largebusiness and financial centers makes locating acorporate headquarters here difficult for companies thatbenefit from proximity to suppliers, competitors,financiers, and customers, although firms that draw onDenver's natural resources and brainpower have thrived.As a result, the metro has had to rely on its own brand ofspecialization in high-value-add industries like


Page 19

Economy

engineering, energy, communications, and high tech to drive growth.

DENVER EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

-0.56%-0.20%1.14%1.47%0.07%1.12%0.570Manufacturing

-0.02%0.10%1.32%1.91%0.41%-0.45%1.0275Trade, Transportation and Utilities

-0.03%0.16%0.93%1.45%-0.02%-1.33%0.9137 Retail Trade

0.05%0.26%1.26%2.24%1.40%4.64%1.3115Financial Activities

0.55%0.88%0.07%1.50%0.72%2.45%0.9204Government

0.01%0.49%2.97%4.61%1.46%0.48%1.3111Natural Resources, Mining and Construction

0.46%0.82%2.17%3.41%2.43%2.46%0.8197Education and Health Services

0.46%0.92%2.73%3.69%1.93%4.12%1.3292Professional and Business Services

0.15%-0.20%0.41%1.42%1.14%2.06%1.851Information

0.41%0.56%2.72%3.22%1.61%1.72%1.0173Leisure and Hospitality

-0.11%0.30%1.15%2.39%1.16%0.21%1.061Other Services

Total Employment 1,550 1.0 2.00% 1.25% 2.68% 1.63% 0.53% 0.22%

Source: Oxford Economics

LQ = Location Quotient


YEAR OVER YEAR JOB GROWTH


Page 20

Economy

DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 330,646,6252,988,125 1.2% 0.7% 1.7% 0.7% 1.2% 0.7%

Households 122,607,4611,151,213 1.1% 0.5% 1.6% 0.7% 1.2% 0.6%

Median Household Income $64,595$83,214 3.6% 3.3% 3.5% 2.6% 2.8% 2.9%

Labor Force 164,435,7341,693,407 1.4% 0.8% 1.8% 0.7% 0.6% 0.4%

Unemployment 3.5%2.7% -0.8% -0.3% -0.6% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


Page 21

Submarkets

DENVER SUBMARKETS


Page 22

Submarkets

SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 Aurora 12,140 7.8% 7 2 46 0.4% 8727 5 107 0.9% 4

2 Central 21,163 13.6% 3 7 131 0.6% 32,421 6 107 0.5% 3

3 Colorado Bl/Cherry Ck 5,144 3.3% 9 0 - - -323 1 3 0% 10

4 Downtown 3,488 2.2% 11 3 206 5.9% 2235 0 0 0% -

5 Northeast 15,207 9.8% 6 15 275 1.8% 11,153 13 84 0.6% 6

6 Northwest 24,779 16.0% 1 9 83 0.3% 61,494 14 155 0.6% 1

7 South 18,290 11.8% 4 5 106 0.6% 4943 7 56 0.3% 8

8 Southeast 15,387 9.9% 5 11 69 0.5% 7864 16 131 0.8% 2

9 Southeast Outlying 3,840 2.5% 10 6 93 2.4% 5330 4 38 1.0% 9

10 Southwest 10,361 6.7% 8 2 15 0.1% 10480 8 96 0.9% 5

11 Southwest Outlying 1,259 0.8% 12 0 - - -222 0 0 0% -

12 West 24,118 15.5% 2 6 33 0.1% 92,430 6 59 0.2% 7

SUBMARKET RENT

Growth

Market Rent

Per SFSubmarketNo.

12 Month Market Rent QTD Annualized Market Rent

RankRank GrowthRank

1 Aurora -3.5%12 2.1% 6$16.74 3

2 Central -4.7%5 3.5% 1$23.27 9

3 Colorado Bl/Cherry Ck -3.8%1 2.5% 4$43.54 5

4 Downtown -4.9%2 2.5% 3$32.68 11

5 Northeast -3.8%6 2.2% 5$21.06 6

6 Northwest -2.9%7 1.9% 8$20.81 2

7 South -3.7%3 1.9% 9$28.57 4

8 Southeast -3.8%4 1.9% 10$25.09 7

9 Southeast Outlying -5.3%10 2.0% 7$19.65 12

10 Southwest -2.7%8 1.8% 11$20.42 1

11 Southwest Outlying -4.1%11 1.3% 12$16.81 8

12 West -4.8%9 2.6% 2$20.35 10


Page 23

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=CMA&redirUrl=%2F%23%2Fsearch%2Fdetail%2Fsubmarket%2Ftype%2F0%2Fproperty%2F6%2Fgeography%2F4733%3Fnested%3Dfalse
























Submarkets

SUBMARKET VACANCY & NET ABSORPTION

12 Month Net Absorption

Rank Construct. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Aurora 532,117 4.4% 0.9113,585 0.9% 27

2 Central 723,556 3.4% -(118,114) -0.6% 113

3 Colorado Bl/Cherry Ck 241,751 4.7% -(110,939) -2.2% 109

4 Downtown 126,836 3.6% -(92,253) -2.6% 94

5 Northeast 761,664 5.0% 0.5145,605 1.0% 110

6 Northwest 1,457,136 5.9% -(204,797) -0.8% 1212

7 South 804,708 4.4% -(22,891) -0.1% 88

8 Southeast 619,787 4.0% 2.237,700 0.2% 56

9 Southeast Outlying 89,916 2.3% 0.844,791 1.2% 41

10 Southwest 403,658 3.9% 0.8104,418 1.0% 35

11 Southwest Outlying 34,970 2.8% -5,613 0.4% 62

12 West 1,284,430 5.3% -(16,279) -0.1% 711


Page 24













Supply & Demand Trends

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 1,173,383 0.7% 0.8%1,216,928 1.0160,622,470

2023 1,114,212 0.7% 0.7%1,088,169 1.0159,449,087

2022 1,122,134 0.7% 0.6%883,044 1.3158,334,875

2021 1,202,685 0.8% 0.4%686,521 1.8157,212,741

2020 953,549 0.6% 0.1%129,760 7.3156,010,056

YTD 189,887 0.1% -0.1%(103,425) -155,246,394

2019 622,040 0.4% -0.1%(108,202) -155,056,507

2018 1,326,933 0.9% 1.3%2,082,779 0.6154,434,467

2017 1,507,785 1.0% 1.1%1,718,898 0.9153,107,534

2016 829,703 0.6% 1.0%1,519,477 0.5151,599,749

2015 820,100 0.5% 0.9%1,326,814 0.6150,770,046

2014 412,277 0.3% 0.9%1,422,641 0.3149,949,946

2013 1,024,330 0.7% 1.4%2,043,190 0.5149,537,669

2012 366,527 0.2% 0.7%1,106,534 0.3148,513,339

2011 833,150 0.6% 1.1%1,606,811 0.5148,146,812

2010 632,724 0.4% 1.0%1,428,267 0.4147,313,662

2009 2,334,569 1.6% 0.9%1,380,356 1.7146,680,938

2008 2,541,365 1.8% 1.2%1,757,367 1.4144,346,369

MALLS SUPPLY & DEMAND



2024 38,180 0.2% 0.2%25,179 1.515,714,087

2023 36,262 0.2% 0.1%13,981 2.615,675,907

2022 36,534 0.2% -0.1%(8,679) -15,639,645

2021 40,345 0.3% -0.1%(17,560) -15,603,111

2020 40,791 0.3% -0.6%(90,751) -15,562,766

YTD 0 0% -0.1%(23,042) -15,521,975

2019 18,941 0.1% -0.6%(91,940) -15,521,975

2018 75,072 0.5% 3.3%508,028 0.115,503,034

2017 322,817 2.1% 3.0%465,060 0.715,427,962

2016 188,969 1.3% 1.8%264,937 0.715,105,145

2015 84,823 0.6% 1.0%153,428 0.614,916,176

2014 7,264 0% -0.6%(91,305) -14,831,353

2013 0 0% 0.7%96,951 014,824,089

2012 38,547 0.3% -0.6%(82,997) -14,824,089

2011 204,751 1.4% -0.2%(22,480) -14,785,542

2010 7,232 0% 0.7%102,186 0.114,580,791

2009 548,111 3.9% 3.9%568,635 1.014,573,559

2008 662,139 5.0% 3.2%443,371 1.514,025,448


Page 25


POWER CENTER SUPPLY & DEMAND



2024 52,421 0.3% 0.5%84,932 0.616,041,886

2023 49,762 0.3% 0.5%74,105 0.715,989,465

2022 50,093 0.3% 0.3%52,436 1.015,939,703

2021 51,656 0.3% 0.2%29,674 1.715,889,610

2020 4,665 0% 0.3%47,254 0.115,837,954

YTD 0 0% 0.2%28,071 015,833,289

2019 77,384 0.5% -0.6%(87,844) -15,833,289

2018 57,500 0.4% -0.7%(105,517) -15,755,905

2017 47,500 0.3% 0.8%126,477 0.415,698,405

2016 13,445 0.1% -2.3%(363,543) -15,650,905

2015 24,542 0.2% 0.5%84,092 0.315,637,460

2014 119,775 0.8% 2.3%360,769 0.315,612,918

2013 88,616 0.6% 0.8%119,757 0.715,493,143

2012 128,031 0.8% 1.7%263,705 0.515,404,527

2011 425,353 2.9% 4.2%643,360 0.715,276,496

2010 27,609 0.2% 2.0%299,305 0.114,851,143

2009 795,915 5.7% 2.9%428,750 1.914,823,534

2008 906,839 6.9% 3.5%484,959 1.914,027,619

NEIGHBORHOOD CENTER SUPPLY & DEMAND



2024 215,272 0.4% 0.6%309,101 0.750,935,961

2023 204,431 0.4% 0.5%272,469 0.850,720,689

2022 205,793 0.4% 0.4%207,770 1.050,516,258

2021 199,821 0.4% 0.3%148,999 1.350,310,465

2020 148,883 0.3% 0.2%101,334 1.550,110,644

YTD 53,200 0.1% -0.1%(33,989) -50,014,961

2019 230,997 0.5% -0.1%(51,358) -49,961,761

2018 165,534 0.3% 0.9%454,012 0.449,730,764

2017 255,676 0.5% 0.8%376,629 0.749,565,230

2016 223,078 0.5% 1.5%725,725 0.349,309,554

2015 435,238 0.9% 1.0%490,825 0.949,086,476

2014 296,795 0.6% 1.1%557,203 0.548,651,238

2013 315,432 0.7% 1.5%718,757 0.448,354,443

2012 492,207 1.0% 1.9%889,236 0.648,039,011

2011 115,322 0.2% 0.7%350,471 0.347,546,804

2010 329,703 0.7% 0.8%385,262 0.947,431,482

2009 313,320 0.7% 0.5%244,978 1.347,101,779

2008 514,659 1.1% 0.3%156,277 3.346,788,459


Page 26


STRIP CENTER SUPPLY & DEMAND



2024 81,080 1.0% 1.0%85,323 1.08,329,931

2023 77,008 0.9% 0.9%78,079 1.08,248,851

2022 77,522 1.0% 0.8%65,083 1.28,171,843

2021 68,460 0.9% 0.5%43,683 1.68,094,321

2020 46,756 0.6% 0%1,051 44.58,025,861

YTD 0 0% -0.4%(29,192) -7,979,105

2019 38,982 0.5% 0.7%54,826 0.77,979,105

2018 113,096 1.4% 1.2%95,576 1.27,940,123

2017 51,663 0.7% 0.5%39,197 1.37,827,027

2016 40,148 0.5% 1.0%75,025 0.57,775,364

2015 34,322 0.4% 1.5%117,109 0.37,735,216

2014 40,508 0.5% 2.0%154,843 0.37,700,894

2013 58,221 0.8% 1.4%104,221 0.67,660,386

2012 20,078 0.3% 0.9%70,527 0.37,602,165

2011 0 0% 1.1%80,520 07,582,087

2010 0 0% 1.5%114,344 07,582,087

2009 88,353 1.2% -0.1%(11,142) -7,582,087

2008 280,498 3.9% 2.2%162,960 1.77,493,734

GENERAL RETAIL SUPPLY & DEMAND



2024 770,548 1.1% 1.0%698,278 1.168,220,318

2023 731,658 1.1% 0.9%636,787 1.167,449,770

2022 736,984 1.1% 0.8%556,503 1.366,718,112

2021 828,836 1.3% 0.7%478,688 1.765,981,128

2020 713,098 1.1% 0.1%81,934 8.765,152,292

YTD 136,687 0.2% -0.1%(45,273) -64,575,881

2019 255,736 0.4% 0.1%68,114 3.864,439,194

2018 587,611 0.9% 1.2%749,836 0.864,183,458

2017 822,725 1.3% 1.2%775,536 1.163,595,847

2016 306,386 0.5% 1.2%757,095 0.462,773,122

2015 241,175 0.4% 0.8%478,122 0.562,466,736

2014 (52,065) -0.1% 0.7%442,337 -62,225,561

2013 562,061 0.9% 1.6%999,603 0.662,277,626

2012 (312,336) -0.5% -0.1%(39,782) -61,715,565

2011 87,724 0.1% 0.9%555,790 0.262,027,901

2010 268,180 0.4% 0.8%521,108 0.561,940,177

2009 588,870 1.0% 0.3%166,095 3.561,671,997

2008 47,991 0.1% 0.6%384,401 0.161,083,127


Page 27


OTHER SUPPLY & DEMAND



2024 15,882 1.2% 1.0%14,115 1.11,380,287

2023 15,091 1.1% 0.9%12,748 1.21,364,405

2022 15,208 1.1% 0.7%9,931 1.51,349,314

2021 13,567 1.0% 0.2%3,037 4.51,334,106

2020 (644) 0% -0.8%(11,062) -1,320,539

YTD 0 0% -- -1,321,183

2019 0 0% -- -1,321,183

2018 328,120 33.0% 28.8%380,844 0.91,321,183

2017 7,404 0.8% -6.4%(64,001) -993,063

2016 57,677 6.2% 6.1%60,238 1.0985,659

2015 0 0% 0.3%3,238 0927,982

2014 0 0% -0.1%(1,206) -927,982

2013 0 0% 0.4%3,901 0927,982

2012 0 0% 0.6%5,845 0927,982

2011 0 0% -0.1%(850) -927,982

2010 0 0% 0.7%6,062 0927,982

2009 0 0% -1.8%(16,960) -927,982

2008 129,239 16.2% 13.5%125,399 1.0927,982


Page 28

Rent & Vacancy

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 129 0.9% 1.1%$23.15 8,311,238 5.2% -0.1%

2023 128 0.7% 0.1%$22.93 8,376,978 5.3% 0%

2022 127 -0.1% -0.6%$22.76 8,373,134 5.3% 0.1%

2021 127 -0.6% -0.5%$22.79 8,155,604 5.2% 0.3%

2020 128 0.1% 0.1%$22.92 7,652,437 4.9% 0.5%

YTD 129 0.7% 0.7%$23.06 7,080,529 4.6% 0.2%

2019 128 2.4% 0%$22.90 6,787,217 4.4% 0.4%

2018 125 3.7% -2.3%$22.37 6,077,804 3.9% -0.5%

2017 121 5.3% -5.8%$21.57 6,850,968 4.5% -0.2%

2016 115 4.7% -10.5%$20.50 7,086,108 4.7% -0.5%

2015 109 3.8% -14.6%$19.57 7,788,482 5.2% -0.4%

2014 105 5.8% -17.7%$18.85 8,282,544 5.5% -0.7%

2013 100 3.9% -22.2%$17.81 9,305,877 6.2% -0.7%

2012 96 0.9% -25.1%$17.15 10,328,600 7.0% -0.5%

2011 95 0% -25.8%$16.99 11,068,607 7.5% -0.6%

2010 95 -2.0% -25.8%$16.99 11,842,493 8.0% -0.5%

2009 97 -3.1% -24.2%$17.35 12,579,672 8.6% 0.5%

2008 100 -1.3% -21.8%$17.90 11,619,273 8.0% 0.4%

MALLS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 137 1.0% 1.4%$33.55 728,355 4.6% 0.1%

2023 135 0.8% 0.4%$33.22 715,861 4.6% 0.1%

2022 134 0% -0.4%$32.96 694,111 4.4% 0.3%

2021 134 -0.5% -0.4%$32.97 649,418 4.2% 0.4%

2020 135 0.2% 0.2%$33.15 591,800 3.8% 0.8%

YTD 136 0.7% 0.7%$33.34 483,196 3.1% 0.1%

2019 135 1.6% 0%$33.09 460,154 3.0% 0.7%

2018 133 3.2% -1.6%$32.57 349,273 2.3% -2.8%

2017 129 5.1% -4.6%$31.56 782,229 5.1% -1.1%

2016 122 5.4% -9.2%$30.04 924,472 6.1% -0.6%

2015 116 2.1% -13.9%$28.50 1,007,440 6.8% -0.5%

2014 114 6.9% -15.6%$27.92 1,076,045 7.3% 0.7%

2013 106 4.7% -21.1%$26.11 977,476 6.6% -0.7%

2012 102 1.2% -24.6%$24.94 1,074,427 7.2% 0.8%

2011 101 1.5% -25.5%$24.65 952,883 6.4% 1.5%

2010 99 1.3% -26.6%$24.29 725,877 5.0% -0.7%

2009 98 -2.2% -27.5%$23.98 820,831 5.6% -0.4%

2008 100 -1.6% -25.9%$24.53 841,355 6.0% 1.3%


Page 29

Rent & Vacancy

POWER CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 128 0.8% 0.3%$24.67 1,109,768 6.9% -0.2%

2023 127 0.6% -0.5%$24.46 1,143,059 7.1% -0.2%

2022 127 -0.2% -1.1%$24.31 1,168,159 7.3% 0%

2021 127 -0.7% -1.0%$24.35 1,171,246 7.4% 0.1%

2020 128 -0.3% -0.3%$24.52 1,149,833 7.3% -0.3%

YTD 129 0.4% 0.4%$24.69 1,164,004 7.4% -0.2%

2019 128 2.3% 0%$24.59 1,192,075 7.5% 1.0%

2018 125 3.7% -2.2%$24.04 1,026,847 6.5% 1.0%

2017 121 5.3% -5.7%$23.19 863,830 5.5% -0.5%

2016 115 5.0% -10.4%$22.03 942,807 6.0% 2.4%

2015 109 3.7% -14.7%$20.98 565,819 3.6% -0.4%

2014 105 6.0% -17.8%$20.22 625,369 4.0% -1.6%

2013 99 3.6% -22.4%$19.07 866,363 5.6% -0.2%

2012 96 1.2% -25.1%$18.41 897,504 5.8% -0.9%

2011 95 0.2% -26.0%$18.20 1,033,178 6.8% -1.7%

2010 95 -2.1% -26.1%$18.17 1,251,185 8.4% -1.8%

2009 97 -3.3% -24.5%$18.56 1,522,881 10.3% 2.0%

2008 100 -1.3% -21.9%$19.20 1,155,716 8.2% 2.6%

NEIGHBORHOOD CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 125 0.9% 0.5%$21.15 3,074,275 6.0% -0.2%

2023 124 0.7% -0.4%$20.96 3,172,024 6.3% -0.2%

2022 123 -0.1% -1.1%$20.81 3,243,902 6.4% 0%

2021 123 -0.6% -1.0%$20.84 3,249,689 6.5% 0.1%

2020 124 -0.3% -0.3%$20.97 3,201,279 6.4% 0.1%

YTD 125 0.3% 0.3%$21.11 3,214,393 6.4% 0.2%

2019 124 2.0% 0%$21.04 3,127,204 6.3% 0.5%

2018 122 3.8% -1.9%$20.64 2,843,669 5.7% -0.6%

2017 118 5.3% -5.5%$19.89 3,142,065 6.3% -0.3%

2016 112 4.9% -10.2%$18.89 3,263,225 6.6% -1.1%

2015 107 4.2% -14.4%$18.01 3,765,872 7.7% -0.2%

2014 102 5.2% -17.9%$17.28 3,821,776 7.9% -0.6%

2013 97 3.1% -21.9%$16.44 4,082,184 8.4% -0.9%

2012 94 0.6% -24.2%$15.94 4,487,589 9.3% -0.9%

2011 94 -0.3% -24.7%$15.85 4,884,618 10.3% -0.5%

2010 94 -2.9% -24.4%$15.90 5,119,767 10.8% -0.1%

2009 97 -3.1% -22.2%$16.38 5,117,510 10.9% 0.1%

2008 100 -1.3% -19.6%$16.91 5,049,168 10.8% 0.7%


Page 30

Rent & Vacancy

STRIP CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 124 0.8% 0.4%$20.55 489,124 5.9% -0.1%

2023 123 0.6% -0.5%$20.38 494,912 6.0% -0.1%

2022 122 -0.2% -1.1%$20.25 497,524 6.1% 0.1%

2021 122 -0.7% -0.9%$20.29 486,592 6.0% 0.2%

2020 123 -0.2% -0.2%$20.44 462,802 5.8% 0.5%

YTD 124 0.5% 0.5%$20.59 445,996 5.6% 0.4%

2019 124 2.2% 0%$20.47 416,804 5.2% -0.2%

2018 121 3.4% -2.1%$20.04 432,648 5.4% 0.1%

2017 117 4.9% -5.4%$19.37 415,128 5.3% 0.1%

2016 111 4.0% -9.8%$18.47 401,037 5.2% -0.6%

2015 107 4.1% -13.3%$17.75 441,514 5.7% -1.1%

2014 103 5.3% -16.7%$17.05 524,301 6.8% -1.5%

2013 98 3.8% -20.9%$16.20 638,636 8.3% -0.7%

2012 94 0.5% -23.8%$15.60 684,636 9.0% -0.7%

2011 94 -0.7% -24.2%$15.52 735,085 9.7% -1.1%

2010 94 -2.8% -23.7%$15.63 815,605 10.8% -1.5%

2009 97 -2.9% -21.5%$16.08 929,949 12.3% 1.3%

2008 100 -1.2% -19.1%$16.57 824,268 11.0% 1.1%

GENERAL RETAIL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 131 1.0% 1.6%$22.18 2,859,544 4.2% 0%

2023 130 0.8% 0.6%$21.96 2,802,689 4.2% 0.1%

2022 129 -0.1% -0.1%$21.80 2,723,317 4.1% 0.2%

2021 129 -0.6% -0.1%$21.81 2,557,778 3.9% 0.5%

2020 129 0.5% 0.5%$21.94 2,216,357 3.4% 1.0%

YTD 130 1.0% 1.0%$22.05 1,753,010 2.7% 0.3%

2019 129 3.0% 0%$21.83 1,571,050 2.4% 0.2%

2018 125 3.9% -2.9%$21.19 1,405,437 2.2% -0.3%

2017 120 5.3% -6.6%$20.39 1,575,062 2.5% 0%

2016 114 4.4% -11.3%$19.36 1,553,318 2.5% -0.7%

2015 109 4.2% -15.1%$18.54 2,004,027 3.2% -0.4%

2014 105 6.0% -18.5%$17.80 2,228,005 3.6% -0.8%

2013 99 4.2% -23.1%$16.79 2,735,376 4.4% -0.8%

2012 95 1.1% -26.2%$16.12 3,174,701 5.1% -0.4%

2011 94 -0.3% -26.9%$15.95 3,447,255 5.6% -0.8%

2010 94 -2.4% -26.7%$15.99 3,915,321 6.3% -0.4%

2009 97 -3.3% -24.9%$16.39 4,167,701 6.8% 0.6%

2008 100 -1.1% -22.4%$16.95 3,744,926 6.1% -0.6%


Page 31

Rent & Vacancy

OTHER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 127 1.0% 1.4%$21.55 50,172 3.6% 0.1%

2023 126 0.8% 0.4%$21.33 48,433 3.5% 0.1%

2022 125 0% -0.4%$21.17 46,121 3.4% 0.4%

2021 125 -0.5% -0.4%$21.17 40,881 3.1% 0.8%

2020 125 0.2% 0.2%$21.28 30,366 2.3% 0.8%

YTD 126 0.6% 0.6%$21.38 19,930 1.5% 0%

2019 125 0.9% 0%$21.25 19,930 1.5% 0%

2018 124 3.4% -0.9%$21.06 19,930 1.5% -5.8%

2017 120 5.3% -4.1%$20.37 72,654 7.3% 7.2%

2016 114 4.9% -8.9%$19.35 1,249 0.1% -0.3%

2015 109 4.3% -13.1%$18.46 3,810 0.4% -0.3%

2014 104 4.8% -16.7%$17.70 7,048 0.8% 0.1%

2013 99 3.2% -20.5%$16.89 5,842 0.6% -0.4%

2012 96 -0.2% -22.9%$16.38 9,743 1.0% -0.6%

2011 97 0.5% -22.8%$16.41 15,588 1.7% 0.1%

2010 96 -1.8% -23.2%$16.32 14,738 1.6% -0.7%

2009 98 -2.2% -21.8%$16.61 20,800 2.2% 1.8%

2008 100 -1.7% -20.0%$16.99 3,840 0.4% 0.4%


Page 32

Sale Trends

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 162- $225.25 6.9%

2023 -- - -- 161- $224.05 6.8%

2022 -- - -- 160- $222.50 6.8%

2021 -- - -- 160- $223.20 6.8%

2020 -- - -- 161- $224.03 6.7%

YTD $286.5 M154 0.9% $247.53$2,430,207 1616.1% $224.53 6.7%

2019 $1,322 M633 4.3% $244.20$2,730,041 1616.2% $224.66 6.6%

2018 $1,452 M744 7.0% $191.40$2,712,609 1546.5% $214.27 6.7%

2017 $1,321 M639 5.5% $182.04$2,611,564 1486.2% $206.07 6.8%

2016 $1,324 M647 4.3% $243.48$2,438,174 1416.6% $196.90 6.8%

2015 $1,494 M748 6.7% $190.45$2,462,358 1356.8% $187.67 6.9%

2014 $1,019 M700 5.9% $154.97$1,816,044 1257.1% $173.74 7.2%

2013 $1,048 M649 5.6% $160.47$2,178,476 1097.5% $151.26 7.6%

2012 $857.3 M543 5.0% $178.40$2,229,025 1067.8% $147.09 7.7%

2011 $499.0 M409 3.7% $135.57$1,653,692 968.3% $133.90 8.1%

2010 $351.8 M324 2.5% $107.37$1,310,860 918.2% $127.24 8.4%

2009 $475.8 M232 2.0% $193.33$2,443,247 888.3% $122.66 8.5%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

MALLS SALES





2024 -- - -- 144- $215.41 6.7%

2023 -- - -- 144- $214.16 6.7%

2022 -- - -- 142- $212.51 6.6%

2021 -- - -- 143- $213.01 6.6%

2020 -- - -- 143- $213.40 6.6%

YTD -- - -- 143- $213.39 6.5%

2019 $13.0 M4 0.1% $556.77$3,240,000 1445.4% $214.78 6.5%

2018 $199.5 M45 21.3% $146.99$6,235,218 1376.0% $204.16 6.6%

2017 $77.8 M14 2.7% $265.98$7,073,874 1325.5% $196.59 6.6%

2016 $18.8 M13 2.9% $347.66$3,128,340 1265.4% $188.58 6.7%

2015 $256.2 M22 10.8% $403.54$25,623,040 1235.6% $183.75 6.7%

2014 $10.0 M5 3.1% $59.88$3,339,333 1156.9% $171.83 6.9%

2013 $25.7 M21 3.1% $397.88$3,211,750 107- $159.55 7.2%

2012 $302.9 M30 11.3% $522.43$37,858,678 1058.2% $157.04 7.2%

2011 $3.5 M2 1.5% $15.45$1,753,500 968.9% $143.82 7.5%

2010 $4.6 M2 0.1% $568.43$2,309,250 929.0% $136.75 7.8%

2009 $232.1 M2 4.0% $607.31$232,050,193 88- $131.65 7.9%




Page 33

Sale Trends

POWER CENTER SALES





2024 -- - -- 146- $209.90 6.9%

2023 -- - -- 145- $209.01 6.8%

2022 -- - -- 145- $207.75 6.8%

2021 -- - -- 145- $208.57 6.8%

2020 -- - -- 146- $209.57 6.8%

YTD $55.5 M21 1.6% $217.71$2,640,509 147- $210.61 6.7%

2019 $54.5 M18 2.9% $228.48$3,632,667 1486.1% $212.95 6.6%

2018 $115.9 M26 5.8% $126.71$4,456,769 1416.7% $202.32 6.7%

2017 $77.0 M19 6.1% $102.32$4,529,721 1366.5% $195.09 6.7%

2016 $80.0 M12 1.5% $341.31$6,663,841 1307.0% $187.24 6.8%

2015 $169.1 M39 7.9% $216.83$5,830,493 1256.2% $179.76 6.9%

2014 $56.1 M45 6.3% $240.15$5,606,457 1187.1% $170.06 7.0%

2013 $255.9 M47 10.0% $226.95$10,234,735 1047.4% $148.91 7.5%

2012 $53.4 M34 5.9% $160.88$4,105,307 1047.5% $149.57 7.4%

2011 $36.0 M22 8.2% $168.54$6,008,302 969.6% $137.71 7.8%

2010 $8.0 M6 1.6% $34.38$1,602,320 92- $132.05 8.0%

2009 $3.8 M1 0.5% $48.15$3,850,000 88- $126.98 8.2%



NEIGHBORHOOD CENTER SALES





2024 -- - -- 155- $197.21 7.0%

2023 -- - -- 154- $196.18 6.9%

2022 -- - -- 153- $194.82 6.9%

2021 -- - -- 154- $195.43 6.9%

2020 -- - -- 154- $196.13 6.9%

YTD $43.6 M12 0.7% $151.29$4,842,297 1556.4% $196.70 6.8%

2019 $457.1 M102 4.9% $205.84$5,434,768 1566.4% $198.21 6.7%

2018 $356.5 M118 5.1% $155.92$3,593,605 1486.8% $187.99 6.9%

2017 $476.4 M131 6.1% $161.77$4,091,287 1426.2% $180.79 6.9%

2016 $560.3 M121 4.8% $242.67$4,867,723 1366.5% $173.08 7.0%

2015 $389.4 M129 6.1% $135.75$3,191,924 1306.6% $165.42 7.1%

2014 $352.7 M122 5.6% $143.63$3,235,976 1226.8% $154.39 7.3%

2013 $347.8 M117 5.7% $143.14$3,250,739 1068.0% $134.62 7.8%

2012 $168.7 M97 4.3% $103.79$2,677,483 1047.6% $132.30 7.8%

2011 $202.5 M80 3.8% $148.20$3,214,150 957.3% $120.79 8.2%

2010 $112.2 M44 2.3% $116.84$2,794,686 917.9% $115.95 8.4%

2009 $78.3 M28 1.5% $116.94$2,900,870 888.0% $111.95 8.6%




Page 34

Sale Trends

STRIP CENTER SALES





2024 -- - -- 169- $254.60 6.9%

2023 -- - -- 168- $253.45 6.8%

2022 -- - -- 167- $251.89 6.8%

2021 -- - -- 168- $252.88 6.8%

2020 -- - -- 168- $253.91 6.8%

YTD $6.9 M4 0.3% $432.92$2,304,167 169- $254.56 6.7%

2019 $89.4 M37 4.4% $289.09$2,778,120 1677.1% $252.06 6.7%

2018 $78.6 M46 4.8% $321.48$2,657,177 1635.9% $245.40 6.7%

2017 $86.9 M54 6.6% $232.86$2,534,727 1567.2% $236.22 6.7%

2016 $89.9 M54 7.0% $197.59$2,089,634 1507.1% $225.81 6.8%

2015 $110.0 M58 8.4% $215.53$2,618,915 1417.2% $213.11 6.9%

2014 $72.8 M62 7.2% $141.04$1,343,874 1307.6% $195.63 7.2%

2013 $47.7 M43 6.3% $133.26$1,524,907 1118.1% $167.86 7.8%

2012 $59.9 M47 6.9% $145.47$1,726,832 1068.4% $160.42 7.9%

2011 $25.6 M27 3.4% $137.01$1,666,074 978.3% $145.94 8.3%

2010 $19.1 M19 2.5% $147.16$1,853,711 917.5% $137.01 8.7%

2009 $15.7 M14 2.0% $123.19$1,311,592 889.4% $132.17 8.8%



GENERAL RETAIL SALES





2024 -- - -- 173- $249.14 6.8%

2023 -- - -- 172- $247.71 6.7%

2022 -- - -- 171- $245.95 6.7%

2021 -- - -- 172- $246.70 6.7%

2020 -- - -- 172- $247.64 6.7%

YTD $180.5 M117 1.1% $301.59$2,116,220 1726.1% $248.03 6.6%

2019 $708.0 M472 5.3% $270.06$2,023,929 1726.0% $246.66 6.6%

2018 $701.7 M508 5.8% $252.01$2,004,229 1646.5% $235.86 6.7%

2017 $586.4 M419 5.4% $206.91$1,801,641 1586.1% $226.55 6.7%

2016 $575.5 M447 4.7% $241.06$1,563,489 1506.6% $215.76 6.7%

2015 $568.8 M500 5.8% $186.60$1,408,102 1426.8% $204.27 6.9%

2014 $527.6 M466 6.5% $164.67$1,366,438 1307.2% $187.06 7.2%

2013 $370.7 M420 5.0% $145.39$1,194,191 1127.0% $160.43 7.7%

2012 $272.5 M335 3.6% $146.74$1,006,994 1077.6% $153.67 7.8%

2011 $231.4 M278 3.1% $137.17$1,064,910 978.3% $139.05 8.2%

2010 $207.8 M253 3.4% $106.85$984,374 918.3% $131.10 8.5%

2009 $145.9 M186 2.2% $121.38$941,353 888.1% $126.31 8.7%




Page 35

Sale Trends

OTHER SALES





2024 -- - -- 145- $214.42 6.9%

2023 -- - -- 144- $213.54 6.9%

2022 -- - -- 144- $212.36 6.8%

2021 -- - -- 145- $213.56 6.8%

2020 -- - -- 146- $215.44 6.8%

YTD -- - -- 147- $216.80 6.7%

2019 -- - -- 146- $215.72 6.7%

2018 $01 0.4% -- 137- $202.65 6.9%

2017 $16.8 M2 6.2% $274.23$8,415,850 1346.2% $198.34 6.8%

2016 -- - -- 131- $192.99 6.8%

2015 -- - -- 126- $185.71 6.8%

2014 -- - -- 118- $174.08 7.1%

2013 $01 2.2% -- 103- $152.63 7.5%

2012 -- - -- 102- $150.52 7.5%

2011 -- - -- 93- $138.11 7.9%

2010 -- - -- 90- $133.33 8.0%

2009 $01 1.9% -- 88- $130.52 8.1%




Page 36

Q1 2020

PREPARED BYBrandon Langiewicz,Partner

RECENT RETAIL LISTINGS

RECENT OFFICE LISTINGS

SIZE

7800 W. COLFAX AVE.

7800 West Colfax AvenueLakewood, CO 80214

TERMS

$20,000 /MONTH (+$2.25 NNN)

36,700 SQFT FOR LEASE SIZE

2931 W. 25TH AVE.

2931 West 25th AvenueDenver, CO 80211

TERMS

$30.50 (+$2.85 NNN)

2,026 SQFT FOR LEASE SIZE

7999 W. COLFAX AVE.

7999 West Colfax AvenueLakewood, CO 80214

TERMS

$25,000 /MONTH (NNN)

53,369 SQFT FOR LEASE

Rob AshO: 720.572.5187C: [email protected]

Beau HershbergerO: 720.572.5187C: 303.667.2530

[email protected]

Chris IsbellO: 720.572.5187C: [email protected]

Brandon LangiewiczO: 720.572.5187C: 715.512.0265

[email protected]

Isaiah MayfieldO: 720.572.5187C: 574.216.6149

[email protected]

Shane RobsonO: 720.572.5187C: [email protected]

OUR NETWORK IS YOUR EDGE.

All information is from sources deemed reliable and is subject to errors,omissions, change of price, rental, prior sale, and withdrawal without notice. Prospect should carefully verify each item of information contained herein.

Hoff & Leigh | 2700 S Broadway #307 | Denver, CO 80113 | 720.572.5187 office www.hoffleigh.com/denver


Denver, CO

retail market report...2930-2950 s havana st central 23,589 q2 19 lyft brc real estate richard...

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