Metro Denver/Boulder Retail Market Report 1st Quarter 2017
W i l l i a m G a r y, M B A , M I M • P r i n c i p a l • 303-294-0277
w g a r y @ M a c L W. c o m • w w w . M a c L W. c o m
9 2 3 3 P a r k M e a d o w s D r i v e • S u i t e 1 5 5 • L o n e Tr e e , C O 8 0 1 2 4
First Quarter 2017 – Denver
Denver Retail Market Table of Contents Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C Market Highlights & Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 CoStar Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Figures at a Glance by Building Type & Market Historical Figures at a Glance Leasing Activity Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Select Top Lease Transactions Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Sales Activity Analysis Select Top Sales Transactions Analysis of Individual CoStar Submarket Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Aurora Market Boulder Market Central Market Colorado Bl/Cherry Ck Market Downtown Market Longmont Market North Outlying Market Northeast Market Northern Colorado Market Northwest Market South Market Southeast Outlying Market Southeast Market Southwest Outlying Market Southwest Market West Market
©2017 CoStar Group, Inc.
CoStar Retail Statistics
A
Denver – First Quarter 2017
Denver Retail Market Methodology The CoStar Retail Report calculates Retail statistics using CoStar Group's base of existing, under construction and under renovation Retail buildings in each given metropolitan area. All Retail building types are included, including Community Center, Freestanding Retail, Neighborhood Center, Power Center, Regional Mall, Specialty Center and Unanchored Strip Center, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. CoStar Group's national database includes approximately 80.7 billion square feet of coverage in 3.5 million properties. All rental rates reported in the CoStar Retail Report are calculated using Triple Net (NNN) rental rates.
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© Copyright 2016 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc. 1331 L ST NW • Washington, DC 20005• (800) 204-5960 • www.costar.com • NASDAQ: CSGP B
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market Terms & Definitions Anchor Tenant: A large national or regional retailer that serves as a primary draw for a shopping center; a store strategically located in a retail property in order to enhance, bring attention to, or increase traffic at the property. Sometimes called a “destination” tenant, usually these tenants lease at least 25,000 SF. Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate.The Cap Rate is a calculation that reflects the relationship between one year’s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). Community Center: A shopping center development that has a total square footage between 100,000 – 350,000 SF. Generally will have 2-3 large anchored tenants, but not department store anchors. Community Center typically offers a wider range of apparel and other soft goods than the Neighborhood Center. Among the more common anchors are supermarkets and super drugstores. Community Center tenants sometime contain retailers selling such items as apparel, home improvement/furnishings, toys, electronics or sporting goods. The center is usually configured as a strip, in a straight line, or an “L” or “U” shape. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Freestanding Retail: Single tenant building with a retail tenant. Examples include video stores, fast food restaurant, etc. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. General Retail: Typically are single tenant freestanding generalpurpose commercial buildings with parking. Many single retail buildings fall into this use code, especially when they don’t meet any of the more detailed use code descriptions. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time,generally due to the construction of new buildings. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that ©2017 CoStar Group, Inc.
represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Lifestyle Center: An upscale, specialty retail, main street concept shopping center. An open center, usually without anchors, about 300,000 SF GLA or larger, located near affluent neighborhoods, includes upscale retail, trendy restaurants and entertainment retail. Nicely landscaped with convenient parking located close to the stores. Mall: The combined retail center types of Lifestyle Center, Regional Mall and Super Regional Mall. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different tenant needs. (See also: Tenancy). Neighborhood Center: Provides for the sales of convenience goods (food, drugs, etc.) and personal services (laundry, dry cleaning, etc.) for day-to-day living needs of the immediate neighborhood with a supermarket being the principal tenant. In theory, the typical GLA is 50,000 square feet. In practice, the GLA may range from 30,000 to 100,000 square feet. Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Outlet Center: Usually located in a rural or occasionally in a tourist location, an Outlet Center consists of manufacturer’s outlet stores selling their own brands at a discount. 50,000 – 500,000 SF. An Outlet Center does not have to be anchored. A strip configuration is most common, although some are enclosed malls and others can be arranged in a village cluster. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Power Center: The center typically consists of several freestanding (unconnected) anchors and only a minimum amount of small specialty tenants. 250,000–600,000 SF. A Power Center is dominated by several large anchors, including discount department stores, offprice stores, warehouse clubs, or "category killers," i.e., stores that offer tremendous selection in a particular merchandise category at low prices. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate
CoStar Retail Statistics
C
Denver – First Quarter 2017
Denver Retail Market of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Regional Mall: Provides shopping goods, general merchandise, apparel, and furniture, and home furnishings in full depth and variety. It is built around the full-line department store with a minimum GLA of 100,000 square feet, as the major drawing power. For even greater comparative shopping, two, three, or more department stores may be included. In theory a regional center has a GLA of 400,000 square feet, and may range from 300,000 to more than 1,000,000 square feet. Regional centers in excess of 750,000 square feet GLA with three or more department stores are considered Super Regional. (See also: Super Regional Mall). Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Shopping Center: The combined retail center types of Community Center, Neighborhood Center and Strip Center. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Specialty Center: The combined retail center types of Airport Retail, Outlet Center and Theme/Festival Center. Sports & Entertainment: A facility suited for recreational activities, including: Amusement Facility, Aquatic Facility/Swimming Pool, Bowling Alley, Casino/Gaming Facility, Equestrian Center/Stable, Fitness,Court and Spa Facility,Golf Related,Racetrack,Skating Rink,Ski Resort, Sports Arena/Stadium, and Theatre/Performing Art Facility. Strip Center: A strip center is an attached row of stores or service outlets managed as a coherent retail entity, with on-site parking usually located in front of the stores. Open canopies may connect the storefronts, but a strip center does not have enclosed walkways linking the stores. A strip center may be configured in a straight line, or have an "L" or "U" shape.
and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Super Regional Mall: Similar to a regional mall, but because of its larger size, a super regional mall has more anchors, a deeper selection of merchandise, and draws from a larger population base. As with regional malls, the typical configuration is as an enclosed mall, frequently with multiple levels (See also: Regional Mall). Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Theme/Festival Center: These centers typically employ a unifying theme that is carried out by the individual shops in their architectural design and, to an extent, in their merchandise. Sometimes the biggest appeal of these centers is to tourists; they can be anchored by restaurants and entertainment facilities. These centers, generally located in urban areas, tend to be adapted from older, sometimes historic, buildings, and can be part of mixed-use projects. 80,000 –250,000 SF. Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC. Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise,rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied.
Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other
D
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market Overview
Denver’s Vacancy Stays at 4.6% Net Absorption Positive 589,135 SF in the Quarter
T
he Denver retail market did not experience much change in market conditions in the first quarter 2017. The vacancy rate remained at 4.6%; the same vacancy as the end of fourth quarter 2016. Net absorption was positive 589,135 square feet, and vacant sublease space increased by 53,024 square feet. Quoted rental rates increased from fourth quarter 2016 levels, ending at $16.84 per square foot per year. A total of 23 retail buildings with 578,283 square feet of retail space were delivered to the market in the quarter, with 1,971,265 square feet still under construction at the end of the quarter. Net Absorption Retail net absorption was strong in Denver first quarter 2017, with positive 589,135 square feet absorbed in the quarter. In fourth quarter 2016, net absorption was positive 746,102 square feet, while in third quarter 2016, absorption came in at positive 194,523 square feet. In second quarter 2016, positive 500,745 square feet was absorbed in the market. Tenants moving out of large blocks of space in 2017 include: Savers moving out of 26,450 square feet at 1400 W Littleton Rd; Brooks Furniture & Design moving out of 20,068 square feet at 8130 S University Blvd; and Total Hockey moving out of 19,500 square feet at 8351 E Belleview Ave. Tenants moving into large blocks of space in 2017 include: King Soopers moving into 123,419 square feet at 5544 Promenade Pky; Colorado Casual moving into 90,000 square feet at 9697 E County Line Rd; and Chuze Fitness moving into 45,000 square feet at 650 E 102nd Ave. Vacancy Denver’s retail vacancy rate changed in the first quarter 2017, ending the quarter at 4.6%. Over the past four quarters,
the market has seen an overall decrease in the vacancy rate, with the rate going from 4.7% in the second quarter 2016, to 4.7% at the end of the third quarter 2016, 4.6% at the end of the fourth quarter 2016, to 4.6% in the current quarter. The amount of vacant sublease space in the Denver market has trended up over the past four quarters. At the end of the second quarter 2016, there were 392,640 square feet of vacant sublease space. Currently, there are 627,351 square feet vacant in the market. Largest Lease Signings The largest lease signings occurring in 2017 included: the 29,958-square-foot-lease signed by 2nd & Charles at 8500 W Crestline Ave; the 28,765-square-foot-deal signed by Affordable Moving & Storage Inc. at 2737 W Belleview Ave; and the 25,130-square-foot-lease signed by Guiry’s Paint 6735 W 88th Ave. Rental Rates Average quoted asking rental rates in the Denver retail market are up over previous quarter levels, and up from their levels four quarters ago. Quoted rents ended the first quarter 2017 at $16.84 per square foot per year. That compares to $16.08 per square foot in the fourth quarter 2016, and $15.85 per square foot at the end of the second quarter 2016. This represents a 4.7% increase in rental rates in the current quarter, and a 5.88% increase from four quarters ago. Inventory & Construction During the first quarter 2017, 23 buildings totaling 578,283 square feet were completed in the Denver retail market. Over the past four quarters, a total of 1,837,718 square feet of retail
Vacancy Rates by Building Type Power Center
Specialty Center
2006-2017
General Retail
Shopping Center
Mall
Total Market
12%
10%
8%
6%
4%
2%
0% 2006 1q
2007 1q
2008 1q
2009 1q
2010 1q
2011 1q
2012 1q
2013 1q
2014 1q
2015 1q
2016 1q
20171q
Source: CoStar Property®
©2017 CoStar Group, Inc.
Absorption & Deliveries
Past 7 Quarters
CoStar Retail Statistics
Vacancy & Rent
Past 7 Quarters
1
Denver � First Quarter 2017
Denver Retail Market Overview
space has been built in Denver. In addition to the current quarter, 33 buildings with 539,112 square feet were completed in fourth quarter 2016, 29 buildings totaling 401,574 square feet completed in third quarter 2016, and 318,749 square feet in 17 buildings completed in second quarter 2016. There were 1,971,265 square feet of retail space under construction at the end of the first quarter 2017. Some of the notable 2017 deliveries include: 5940 Promenade Pky, a 136,400-square-foot facility that delivered in first quarter 2017 and is now 100% occupied, and 5544 Promenade Pky, a 123,419-square-foot building that delivered in first quarter 2017 and is now 100% occupied. Total retail inventory in the Denver market area amounted to 198,238,497 square feet in 14,746 buildings and 1505 centers as of the end of the first quarter 2017.
011 1q
Vacancy & Rent Past 7 Quarters Average Rental Rate
Vacancy Rate
Price in Dollars per Unit
$17
5.4%
$17
5.2%
$16
5.0%
$16
4.8%
$15
4.6%
$15
4.4% 4.2%
$14 2015 3q
2016 1q
2016 3q
2017 1q
Vacancy Rate Percentage
Retail
Shopping Center The Shopping Center market in Denver currently consists 2006-2017 of 1432 projects with 74,332,195 square feet of retail space in Shopping Center Total Market 3,601 buildings. InMall this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers. After absorbing 105,677 square feet and delivering 59,227 square feet in the current quarter, the Shopping Center sector saw the vacancy rate go from 6.6% at the end of the fourth quarter 2016 to 6.5% this quarter. Over the past four quarters, the Shopping Center vacancy rate has gone from 7.1% at the end of the second quarter 2016, to 7.0% at the end of the third quarter 2016, to 6.6% at the end of the fourth quarter 2016, and finally to 6.5% at the end of the current quarter. Rental rates ended the first quarter 2017 at $15.50 per square foot, up from the $14.96 they were at the end of fourth 2012 1q 2013 1q 2014 1q 2015 1q 2016 1q 20171q quarter 2016. Rental rates have trended up over the past year, going from $14.75 per square foot a year ago to their current levels.
Net absorption in the Shopping Center sector has totaled 795,580 square feet over the past four quarters. In addition to the positive 105,677 square feet absorbed this quarter, positive 368,207 square feet was absorbed in the fourth quarter 2016, positive 176,849 square feet was absorbed in the third quarter 2016, and positive 144,847 square feet was absorbed in the second quarter 2016. Power Centers The Power Center average vacancy rate was 5.7% in the first quarter 2017. With negative (91,064) square feet of net absorption and 24,300 square feet in new deliveries, the vacancy rate went from 5.1% at the end of last quarter to 5.7% at the end of the first quarter. In the fourth quarter 2016, Power Centers absorbed negative (1,731) square feet, delivered 5,545 square feet, and the vacancy rate went from 5.1% to 5.1% over the course of the quarter. Rental started the quarter at $19.01 per square foot and ended the quarter at $17.88 per square foot. A year ago, in first quarter 2016, the vacancy rate was 3.1%. Over the past four quarters, Power Centers have absorbed a cumulative (487,369) square feet of space and delivered cumulative 37,745 square feet of space. Vacant sublease space has gone from 19,600 square feet to 29,000 square feet over that time period, and rental rates have gone from $17.19 to $18.83. At the end of the first quarter 2017, there were 581,000 square feet under construction in the Denver market. The total stock of Power Center space in Denver currently sits at 20,235,465 square feet in 46 centers comprised of 565 buildings. General Retail Properties The General Retail sector of the market, which includes all freestanding retail buildings, except those contained within a center, reported a vacancy rate of 2.2% at the end of first quarter 2017. There was a total of 1,813,920 square feet vacant at that time. The General Retail sector in Denver currently has average rental rates of $18.68 per square foot per year. There are 1,091,170 square feet of space under construction in this sector, with 223,742 square feet having been completed in the first quarter. In all, there are a total of 10,225 buildings with 82,561,409 square feet of General Retail space in Denver. Specialty Centers There are currently 4 Specialty Centers in the Denver market, making up 996,857 square feet of retail space. In this report the Specialty Center market is comprised of Outlet Center, Airport Retail and Theme/Festival Centers. Specialty Centers in the Denver market have experienced positive 1,249 square feet of net absorption in 2017. The vacancy rate currently stands at 0.0%, and rental rates average $19.09 per square foot.
Source: CoStar Property®
2
CoStar Retail Statistics
©2017 CoStar Group, Inc.
2% First Quarter 2017 – Denver
Denver Retail Market 0%
2006 1q
Overview
Sales Activity Tallying retail building sales of 15,000 square feet or larger, Denver retail sales figures fell during the fourth quarter 2016 in terms of dollar volume compared to the third quarter of 2016. In the fourth quarter, 12 retail transactions closed with a total volume of $125,950,600. The 12 buildings totaled 675,067 square feet and the average price per square foot equated to $186.57 per square foot. That compares to 21 transactions totaling $165,876,562 in the third quarter 2016. The total square footage in the third quarter was 856,406 square feet for an average price per square foot of $193.69. Total retail center sales activity in 2016 was down compared to 2015. In the twelve months of 2016, the market saw 85 retail sales transactions with a total volume of $748,420,062. The price per square foot averaged $200.18. In the same twelve months of 2015, the market posted 105 transactions with a total volume of $976,571,280. The price per square foot averaged $161.69.
©2017 CoStar Group, Inc.
2008 1q
2009 1q
2010 1q
2011 1q
Absorption & Deliveries Past 7 Quarters Net Absorption
Deliveries
1.2 0.98 0.94
1.0
Millions SF
Malls Malls recorded net absorption of positive 249,595 square feet in the first quarter 2017. This net absorption number, combined with the 271,014 square feet that was built in the quarter, caused the vacancy rate to go from 6.2% a quarter ago to 6.3% at the end of the first quarter 2017. Rental rates went from $20.74 per square foot to $26.84 per square foot during that time. In this report the Mall market is comprised of 23 Lifestyle Center, Regional Mall and Super Regional Malls.
2007 1q
Source: CoStar Property®
0.75
0.8 0.60
0.6
0.590.58
0.40
0.39
0.4
0.32 0.23
0.2
0.54
0.50
0.19
0.11
0.0 2015 3q
2016 1q
2016 3q
2017 1q
Source: CoStar Property®
Cap rates have been lower in 2016, averaging 7.11% compared to the same period in 2015 when they averaged 7.13%. One of the largest transactions that occurred within the last four quarters in the Denver market is the sale of Aspen Grove in Littleton. This 267,477 square foot, nine-building retail center featuring tenants like the Alamo Drafthouse Cinema, Ted’s Montana Grill, and an Apple Store sold for $82,000,000, or $306.57 per square foot. The property sold on 10/27/2016 at a 6.20 cap rate. Reports compiled by: Jeff Miles, Research Manager.
CoStar Retail Statistics
3
Denver � First Quarter 2017
Denver Retail Market Markets
CoStar Submarkets In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. Submarket Clusters Aurora Ret Boulder Ret Central Ret Colorado Bl/Cherry Ck Ret Downtown Ret Longmont Ret North Outlying Ret Northeast Ret Northern Colorado Ret Northwest Ret South Ret Southeast Outlying Ret Southeast Ret Southwest Outlying Ret Southwest Ret West Ret
4
CoStar Retail Statistics
©2017 CoStar Group, Inc.
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First Quarter 2017 – Denver
Denver Retail Market Inventory & development
Historical Deliveries
1982 - 2017
Deliveries
8.0
Average Delivered SF 7.4 6.9
7.0
6.5
6.3
6.4
6.6
Millions of SF
6.0 4.7
5.0 3.8
4.0 3.0
5.0
5.0
4.8
4.5 3.5
2.6
2.3 1.8
2.0
4.7 4.7
4.0
3.7 3.6
3.2
3.0
2.9
4.9
1.3
2.1
0.9
1.0
1.6
1.6 0.7
1.3
1.8 1.7 1.9
0.8
0.0 1982 Source: CoStar Property®
1986
1990
1994
1998
2002
2006
2010
2014
* Future deliveries based on current under construction buildings.
Construction Activity Markets Ranked by Under Construction Square Footage Under Construction Inventory # Bldgs
Market
Total GLA
Average Bldg Size
Preleased SF
Preleased %
All Existing
U/C
16
696,829
557,023
79.9%
12,381
43,552
8
348,180
108,540
31.2%
8,997
43,522
14
248,299
204,607
82.4%
16,061
17,736
8
167,765
130,615
77.9%
10,323
20,971
16
165,349
133,357
80.7%
13,346
10,334
Downtown Ret
4
103,758
96,231
92.7%
16,305
25,939
Boulder Ret
2
87,588
37,706
43.0%
14,564
43,794
Aurora Ret
4
61,490
21,490
34.9%
17,246
15,372
Southeast Outlying Ret
2
46,277
40,000
86.4%
11,610
23,138
Southeast Ret
3
23,235
19,612
84.4%
18,588
7,745
All Other
3
22,495
14,995
66.7%
16,559
7,498
13,444
24,641
Northern Colorado Ret Central Ret Northwest Ret West Ret Northeast Ret
Totals
1,971,265
80
1,364,176
69.2%
Source: CoStar Property®
Recent Deliveries
Future Deliveries
Leased & Un-Leased SF in Deliveries Since 2013
Preleased & Un-Leased SF in Properties Scheduled to Deliver
Leased
Un-Leased
2.0 1.8
Un-Leased
700
1.6
600 Thousands of SF
1.4 1.2 1.0 0.8 0.6
500
T
Millions of SF
Preleased
800
400 300 200
0.4
100
0.2 0.0
0 2013
Source: CoStar Property®
©2017 CoStar Group, Inc.
2015
2017
2017 2q
2017 4q
Source: CoStar Property®
CoStar Retail Statistics
5
Denver � First Quarter 2017
Denver Retail Market Inventory & development
Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction Construction Starts
1.4
Deliveries 1.21
1.2 0.94
Millions of SF
1.0 0.8 0.6
0.26 0.2
0.25 0.17
0.46
0.45
0.40 0.4
0.420.40
0.39
0.36
0.280.31
0.29
0.58 0.55
0.54
0.490.49
0.42
0.32 0.28
0.19
0.13
0.11
0.0 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Recent Deliveries by Project Size of Year-to-Date Development Building Size
# Bldgs
< 50,000 SF
GLA
SF Leased
% Leased
Avg Rate
Single-Tenant
Multi-Tenant
20
246,589
192,794
78.2%
$31.55
92,834
153,755
50,000 SF - 99,999 SF
1
71,875
71,875
100.0%
$0.00
71,875
100,000 SF - 249,999 SF
2
259,819
259,819
100.0%
$0.00
0
250,000 SF - 499,999 SF
0
0
0
0.0%
$0.00
0
0
>= 500,000 SF
0
0
0
0.0%
$0.00
0
0
0 259,819
Source: CoStar Property®
Recent Development by Tenancy
Existing Inventory Comparison
Based on GLA Developed for Single & Multi Tenant Use
Based on Total GLA
2017 Deliveries
Currently Under Construction General Retail
Shopping Center
28% 38%
Power Center 62%
72%
Mall
Specialty Center Multi
Single
Multi
Single
Millions of SF
Source: CoStar Property®
6
0
20
40
60
80
100
Source: CoStar Property®
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market Inventory & development
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����� ���������� ������������� ��������������� ������������ ������������ ����������� �
���� �������������� ����������� ����� ���������� ������������� ��������������� ������������ ������������ ����������� �
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������������������������
©2017 CoStar Group, Inc.
CoStar Retail Statistics
7
Denver � First Quarter 2017
Denver Retail Market Inventory & development
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����� ������������������� ������������������������� ����������� ������ ������ ����� ���� ����������� ��� ������������� ��������������� ������������������� ������������������ ������������ ��� ������������ ���������������������� ����������� �
�������������������� ������������������ ����������� ������ ����� �� ����������� ���������� ������������� ��������������� ������������������ ������������������� ������������ ������������������ ������������ �������������������������� ����������� ������� �
����� ����������������� ������������������ ����������� ������ ����� ���� ����������� ��� ������������� ��������������� ������������������ ������������������� ������������ ��� ������������ �������������������� ����������� �
��������������������� ������ ��� ���������� ������������������� ������������������� ��������������������� ���������������������
������������������������
8
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market Figures at a Glance
General Retail Market Statistics Existing Inventory Market
# Blds
First Quarter 2017 Vacancy
Total GLA
Direct SF
Total SF
YTD Net
YTD
Under
Vac %
Absorption
Deliveries
Const SF
Quoted Rates
Aurora Ret
366
3,427,707
136,054
139,354
4.1%
41,413
0
61,490
$26.49
Boulder Ret
352
3,352,938
54,506
79,304
2.4%
(17,808)
0
87,588
$29.45
Central Ret
1,921
12,802,795
384,654
386,204
3.0%
(54,343)
3,000
290,180
$20.32
Colorado Bl/Cherry Ck Ret
223
1,985,029
44,809
44,809
2.3%
77,478
71,875
Downtown Ret
216
3,032,367
98,370
100,164
3.3%
18,977
0
Longmont Ret
359
2,390,047
52,643
71,327
3.0%
5,910
0
0
$13.47
North Outlying Ret
169
1,094,517
14,752
14,752
1.3%
74
0
0
$13.01
Northeast Ret
814
5,908,358
68,371
68,371
1.2%
27,031
1,621
12,653,005
317,166
375,084
3.0%
(52)
Northwest Ret
933
8,897,461
74,710
74,710
0.8%
39,337
South Ret
485
6,795,608
84,028
84,028
1.2%
80,228
Southeast Outlying Ret
223
1,413,057
41,953
41,953
3.0%
30,162
Southeast Ret
389
4,778,199
75,109
75,109
1.6%
(10,052)
0
Southwest Outlying Ret
162
760,439
16,669
16,669
2.2%
(2,912)
0
Southwest Ret
221
2,734,568
44,800
44,800
1.6%
9,138
0
1,771
10,535,314
197,282
197,282
1.9%
79,097
58,768
167,765
10,225
82,561,409
1,705,876
1,813,920
2.2%
323,678
223,742
1,091,170
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
0
0
$0.00
0
0
$26.00
0
0
$0.00
Northern Colorado Ret
West Ret Totals
22,666 0 20,700 0
0 103,758
$32.65 $25.10
43,832
$14.70
132,829
$12.94
169,200
$17.12
8,083
46,733
0 19,533 0 6,912
$20.35 $17.75 $19.78 $13.85 $13.78 $17.09 $18.68
Source: CoStar Property®
Mall Market Statistics
First Quarter 2017
Existing Inventory Market
# Ctrs
Vacancy
Total GLA
Direct SF
Total SF
Vac %
Aurora Ret
1
1,226,778
45,777
45,777
3.7%
Boulder Ret
1
707,247
12,157
14,881
2.1%
Central Ret
0
Colorado Bl/Cherry Ck Ret
1
1,229,400
1,944
1,944
0.2%
0
0
0
$0.00
Downtown Ret
1
411,528
10,854
10,854
2.6%
0
0
0
$0.00
Longmont Ret
1
91,698
91,698
19.7%
0
0
$0.00
North Outlying Ret
0
Northeast Ret
2
1,325,451
66,401
Northern Colorado Ret
4
2,700,715
Northwest Ret
3
South Ret
0
465,600 0
0
0
4,842 0
0
0
$0.00
66,401
5.0%
0
0
0
$0.00
226,500
226,500
8.4%
2,642,120
440,785
440,785
16.7%
3
2,613,499
32,721
32,721
1.3%
1,306
Southeast Outlying Ret
2
735,407
62,103
62,103
8.4%
275,012
Southeast Ret
1
1,514,320
167,476
167,476
11.1%
(6,627)
Southwest Outlying Ret
0
Southwest Ret
1
1,470,002
West Ret
2
3,070,504
Totals
23
20,112,571
0 69,461 30,357 1,258,234
0
0.0%
(14,881)
0.0%
0
0
0
0
0 69,461 30,357 1,260,958
0.0% 4.7% 1.0% 6.3%
1,134 0
0 (11,191) 0 249,595
0
14,000
$28.43
0
0
$0.00
0
0
$32.00
271,014
46,277
$25.00
0
0
$26.80
0
0
$0.00
0
0
$0.00
0
$30.00
0 271,014
60,277
$26.84
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
9
Denver � First Quarter 2017
Denver Retail Market Figures at a Glance
Power Center Market Statistics
First Quarter 2017
Existing Inventory Market
# Ctrs
Vacancy
Total GLA
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted Rates
Aurora Ret
2
1,071,424
80,262
80,262
7.5%
1,704
0
0
$27.81
Boulder Ret
1
622,366
57,244
57,244
9.2%
3,138
0
0
$19.23
Central Ret
3
1,427,803
18,725
28,125
2.0%
1,150
0
0
$22.33
Colorado Bl/Cherry Ck Ret
1
356,898
44,997
44,997
12.6%
0
0
0
$35.00
Downtown Ret
0
0.0%
0
0
0
$0.00
Longmont Ret
1
0
0
$6.45
North Outlying Ret
0
0
0
$0.00
Northeast Ret
6
3,231,703
185,899
185,899
5.8%
(61,136)
Northern Colorado Ret
9
3,357,413
102,285
102,285
3.0%
(7,876)
Northwest Ret
7
3,235,722
375,909
395,509
12.2%
(15,435)
South Ret
4
1,150,234
17,847
17,847
Southeast Outlying Ret
0
Southeast Ret
4
Southwest Outlying Ret
0
Southwest Ret
5
2,073,124
129,417
129,417
6.2%
West Ret
3
926,224
39,819
39,819
Totals
46
1,153,954
0 505,436 0
0 2,277,118 0
20,235,465
0
0
3,766
3,766
0
0
0
0
68,784
68,784
0
0
1,124,954
0.7% 0.0%
6,432 0
0 24,300
40,000
$22.92
541,000
$21.35
0
0
$14.75
1.6%
(167)
0
0
$24.00
0.0%
0
0
0
$0.00
0
0
$0.00
0
0
$0.00
(29,958)
0
0
$0.00
4.3%
1,373
0
0
$20.56
5.7%
(91,064)
3.0% 0.0%
9,711 0
24,300
581,000
$18.83
Source: CoStar Property®
Shopping Center Market Statistics Existing Inventory Market
# Ctrs
Total GLA
First Quarter 2017
Vacancy Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
0
0
$12.70
0
0
$20.50
Aurora Ret
98
6,398,090
499,855
536,359
8.4%
Boulder Ret
60
2,861,457
72,538
75,918
2.7%
9,612
Central Ret
165
6,189,741
238,869
352,322
5.7%
49,095
Colorado Bl/Cherry Ck Ret
(44,091)
22,425
58,000
$17.82
42
1,906,702
62,680
64,021
3.4%
1,282
0
0
$23.41
Downtown Ret
11
306,321
42,575
42,575
13.9%
(6,788)
0
0
$0.00
Longmont Ret
58
2,979,437
347,065
347,065
11.6%
16,653
0
0
$13.44
North Outlying Ret
13
305,816
5,870
5,870
1.9%
0
0
$13.79
Northeast Ret
114
5,669,959
417,000
418,981
7.4%
57,565
2,000
81,517
$17.63
Northern Colorado Ret
153
8,080,899
449,181
510,495
6.3%
(28,171)
25,778
9,000
$16.11
Northwest Ret
199
11,629,254
654,046
763,339
6.6%
17,478
9,024
79,099
$13.25
South Ret
93
7,452,743
428,505
487,085
6.5%
(3,599)
0
7,500
$17.52
Southeast Outlying Ret
18
856,547
34,156
34,156
4.0%
1,280
0
0
$20.72
Southeast Ret
99
6,046,848
286,310
292,275
4.8%
(6,053)
0
0
$19.10
9
402,301
65,325
65,325
16.2%
17,651
0
0
$12.65
59
4,086,474
205,387
301,159
7.4%
(12,258)
0
0
$13.78
0
$13.66
Southwest Outlying Ret Southwest Ret West Ret Totals
0
241
9,159,606
542,436
542,436
5.9%
36,021
1,432
74,332,195
4,351,798
4,839,381
6.5%
105,677
0 59,227
235,116
$15.50
Source: CoStar Property®
10
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market Figures at a Glance
Specialty Center Market Statistics Existing Inventory Market
# Ctrs
First Quarter 2017
Vacancy
Total GLA
Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Absorption
Deliveries
Const SF
Quoted Rates
Aurora Ret
0
0
0
0
0.0%
0
0
0
$0.00
Boulder Ret
0
0
0
0
0.0%
0
0
0
$0.00
Central Ret
1
289,887
0
0
0.0%
0
0
0
$0.00
Colorado Bl/Cherry Ck Ret
1
30,960
0
0
0.0%
0
0
0
$0.00
Downtown Ret
0
0
0
0
0.0%
0
0
0
$0.00
Longmont Ret
0
0
0
0
0.0%
0
0
0
$0.00
North Outlying Ret
0
0
0
0
0.0%
0
0
0
$0.00
Northeast Ret
0
0
0
0
0.0%
0
0
0
$0.00
Northern Colorado Ret
0
0
0
0
0.0%
0
0
0
$0.00
Northwest Ret
0
0
0
0
0.0%
0
0
0
$0.00
South Ret
0
0
0
0
0.0%
0
0
0
$0.00
Southeast Outlying Ret
1
477,998
0
0
0.0%
0
0
0
$0.00
Southeast Ret
1
198,012
0
0
0.0%
Southwest Outlying Ret
0
0
0
0
0.0%
0
0
0
$0.00
Southwest Ret
0
0
0
0
0.0%
0
0
0
$0.00
West Ret
0
0
0
0
0.0%
0
0
0
$0.00
Totals
4
996,857
0
0
0.0%
1,249
0
1,249
0
3,702
3,702
$19.09
$19.09
Source: CoStar Property®
Total Retail Market Statistics
First Quarter 2017
Existing Inventory Market
# Blds
Total GLA
Vacancy Direct SF
Total SF
Vac %
YTD Net
YTD
Under
Quoted
Absorption
Deliveries
Const SF
Rates
Aurora Ret
703
12,123,999
761,948
801,752
6.6%
(974)
0
61,490
$15.23
Boulder Ret
518
7,544,008
196,445
227,347
3.0%
(19,939)
0
87,588
$23.97
Central Ret
2,302
20,710,226
642,248
766,651
3.7%
(4,098)
25,425
348,180
$19.67
71,875
Colorado Bl/Cherry Ck Ret
321
5,508,989
154,430
155,771
2.8%
78,760
Downtown Ret
230
3,750,216
151,799
153,593
4.1%
12,189
0
0
Longmont Ret
520
6,340,520
495,172
513,856
8.1%
33,837
0
0
$13.23
North Outlying Ret
196
1,400,333
20,622
20,622
1.5%
74
0
0
$13.47
103,758
$27.03 $25.10
Northeast Ret
1,209
16,135,471
737,671
739,652
4.6%
23,460
24,666
165,349
$17.45
Northern Colorado Ret
2,164
26,792,032
1,095,132
1,214,364
4.5%
(34,965)
50,078
696,829
$15.42
Northwest Ret
1,644
26,404,557
1,545,450
1,674,343
6.3%
41,380
29,724
248,299
$14.10
South Ret
897
18,012,084
563,101
621,681
3.5%
77,768
15,583
$17.87
Southeast Outlying Ret
300
3,483,009
138,212
138,212
4.0%
306,454
46,277
$20.55
Southeast Ret
797
14,814,497
597,679
603,644
4.1%
(11,772)
0
23,235
$19.53
Southwest Outlying Ret
181
1,162,740
81,994
81,994
7.1%
14,739
0
469
10,364,168
449,065
544,837
5.3%
(44,269)
0
Southwest Ret
0 317,747
0 6,912
West Ret
2,295
23,691,648
809,894
809,894
3.4%
116,491
58,768
167,765
Totals
14,746
198,238,497
8,440,862
9,068,213
4.6%
589,135
578,283
1,971,265
$12.82 $13.78 $15.36 $16.84
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
11
Denver � First Quarter 2017
Denver Retail Market Figures at a Glance
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������������������������
12
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market Figures at a Glance
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©2017 CoStar Group, Inc.
CoStar Retail Statistics
13
Denver � First Quarter 2017
Denver Retail Market Leasing Activity
Historical Rental Rates Based on NNN Rental Rates Power Center
Specialty Center
General Retail
Shopping Center
Mall
Total Market
Dollars/SF/Year
$25.00 $20.00 $15.00 $10.00 $5.00 $0.00 2006 1q
2007 1q
2008 1q
2009 1q
2010 1q
2011 1q
2012 1q
2013 1q
2014 1q
2015 1q
2016 1q
2017 1q
Source: CoStar Property®
Vacancy by Available Space Type
Vacancy by Building Type
Percent of All Vacant Space in Direct vs. Sublet
Percent of All Vacant Space by Building Type
7%
Shopping Center
General Retail
Mall
Power Center
Specialty Center
93% Direct
0%
Sublet
Source: CoStar Property®
10%
20%
30%
40%
50%
60%
Source: CoStar Property®
GLA By Building Type
Future Space Available
Ratio of Total GLA by Building Type
Space Scheduled to be Available for Occupancy* 0.5
General Retail
0.46
0.5 0.4
Shopping Center
0.4 Millions
0.3
Power Center
0.3 0.2
Mall
0.2
0.10
0.1
0.06
0.08
0.1
Specialty Center
0.02
0.00
0.0
Millions of SF 0 Source: CoStar Property®
14
20
40
60
80
2017 2q
100
* Includes Under Construction Spaces
CoStar Retail Statistics
2018 2q Source: CoStar Property®
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market Leasing Activity
Select Top Retail Leases
Based on Leased Square Footage For Deals Signed in 2017
Building
Submarket
SF
Qtr
Tenant Name
Tenant Rep Company
Landlord Rep Company
1
3795 Wadsworth Blvd
West Ret
35,000
1st
N/A
N/A
Quadrant Properties
2
8500 W Crestline Ave
Southwest Ret
29,958
1st
2nd & Charles
N/A
Crosbie Real Estate Group
3
2737-2777 W Belleview Ave
Southwest Ret
28,765
1st
A�ordable Moving & Storage Inc.
N/A
N/A
4
6200 S Main St
Southeast Ret
27,799
1st
N/A
N/A
Transwestern
5
6735-6795 W 88th Ave
Northwest Ret
25,130
1st
Guiry’s Paint at Brookhill Town Center
N/A
SRS Real Estate Partners LLC
6
16557-16575 Washington St
Northeast Ret
20,015
1st
N/A
N/A
Jordon Perlmutter & Co.
7
7211 E Evans Ave
Central Ret
19,650
1st
Planet Fitness
N/A
Streamline Commercial Properties
8
7370-7450 W 52nd Ave
Northwest Ret
17,363
1st
You�t Health Clubs
N/A
Legend Partners
9
9420-9440 N Sheridan Blvd
Northwest Ret
17,233
1st
Golf Galaxy
N/A
Legend Partners
10
9046 W Bowles Ave*
Southwest Ret
16,114
1st
Guiry’s
N/A
N/A
11
7041-7071 N Pecos St*
Northwest Ret
11,345
1st
Turn II Bingo
N/A
SRS Real Estate Partners LLC
12
19185 E Lincoln Ave
Southeast Ret
11,000
1st
Appliance Factory Sales Outlet & Service
N/A
N/A
13
1840-2050 Greeley Mall
Northern Colorado Ret
9,153
1st
N/A
N/A
Moonbeam Management and Leasing
14
8657-8785 Sheridan Blvd
Northwest Ret
9,135
1st
Yak & Yeti Restaurant & Events
N/A
Colliers International
15
181 E Foothills Pky
Northern Colorado Ret
8,757
1st
N/A
N/A
Alberta Development Partners, LLC
16
796 S Abilene St
Aurora Ret
8,217
1st
N/A
N/A
Newmark Grubb Knight Frank
17
104th Ave
Northwest Ret
7,800
1st
Chuy’s
N/A
David Hicks & Lampert Brokerage
18
23890 E Smoky Hill Rd
Southeast Ret
6,876
1st
N/A
N/A
Legend Partners
19
9355 Crown Crest Blvd
Southeast Ret
6,442
1st
N/A
N/A
SullivanHayes Brokerage
20
8000 E Quincy Ave
Central Ret
6,394
1st
The Modern Salon Studios
N/A
Gart Properties
21
4235 S College Ave
Northern Colorado Ret
6,031
1st
Oreganos
N/A
SRS Real Estate Partners LLC
22
135 W Oak St*
Northern Colorado Ret
5,930
1st
Jay’s Bistro Ft. Collins LLC
N/A
N/A
23
1033-1055 Broadway*
Central Ret
5,807
1st
Altitude Digital Partners
Direct Deal
Apogee Real Estate
24
1033-1055 Broadway
Central Ret
5,803
1st
MKTG
N/A
Apogee Real Estate
25
3581 E Harmony & Lady Moon Dr
Northern Colorado Ret
5,638
1st
DC Oakes Brewhouse and Eatery
N/A
Waypoint Real Estate, LLC
26
600 S Broadway
Central Ret
5,400
1st
The Premier Group Inc
Space Commercial Real Estate
RE/MAX Leaders
27
21 S 1st Ave
Northeast Ret
5,327
1st
Big Choice Brewery
N/A
Broad Street Realty
28
2223-2253 S Monaco Pky
Central Ret
5,200
1st
N/A
N/A
Legend Partners
29
1600 Pearl St
Boulder Ret
5,170
1st
N/A
N/A
Unico Properties LLC
30
1350 Ken Pratt Blvd
Longmont Ret
5,115
1st
N/A
N/A
Skyline Builders
31
250 E Harmony Rd
Northern Colorado Ret
5,028
1st
N/A
N/A
AmCap Properties, Inc.
32
3300 S College Ave
Northern Colorado Ret
5,001
1st
N/A
N/A
Alberta Development Partners, LLC
33
3800 Walnut St
Central Ret
4,946
1st
RINO Beer Garden
N/A
David Hicks & Lampert Brokerage
34
10155 E Martin Luther King Blvd
Central Ret
4,875
1st
Los Chingones
N/A
David Hicks & Lampert Brokerage
35
10155 E Martin Luther King Blvd
Central Ret
4,875
1st
Endorphin
N/A
David Hicks & Lampert Brokerage
36
10155 E Martin Luther King Blvd
Central Ret
4,875
1st
The Kitchen
N/A
David Hicks & Lampert Brokerage
37
7370-7450 W 52nd Ave
Northwest Ret
4,780
1st
X�nity
N/A
Legend Partners
38
14415 E Smoky Hill Rd
Southeast Ret
4,672
1st
Elevation Ability Services
Avison Young
John Propp Commercial Group
39
7370-7450 W 52nd Ave
Northwest Ret
4,481
1st
Newks
N/A
Legend Partners
40
Hwy 36 & 104th Ave
Northwest Ret
4,412
1st
Prizm Yoga
N/A
David Hicks & Lampert Brokerage
Source: CoStar Property®
* Renewal
©2017 CoStar Group, Inc.
CoStar Retail Statistics
15
Denver � First Quarter 2017
Denver Retail Market Sales Activity
The Optimist Sales Index
Average of Two Highest Price/SF's and Two Lowest Cap Rates Price/SF $590
7.0%
$540
6.0%
$490
5.0%
$440
4.0%
$390
3.0%
$340
2.0%
$290
Dollars/SF
Cap Rate Percentage
Cap Rate 8.0%
$240
1.0% 2014 1q
2015 1q
2016 1q
Source: CoStar COMPS®
Sales Volume & Price
Sales Analysis by Building Size
Based on Retail Building Sales of 15,000 SF and Larger
Based on Retail Building Sales From Jan. 2016 - Dec. 2016
Sales Volume
Bldg Size
Price/SF
$400
RBA
$ Volume
Price/SF Cap Rate
< 25,000 SF
412
2,941,852
$778,965,339
$ 264.79 6.46%
25K-99K SF
37
1,680,035
$251,053,692
$ 149.43
100K-249K SF
5
681,944
$103,593,690
$ 151.91 7.42%
>250K SF
2
601,427
$251,600,000
$ 418.34 6.20%
$200
$350 $300
$150
$250 $200
$100
$150 $100
Price/SF
Millions of Sales Volume Dollars
#
$250
$450
7.23%
$50
$50 $0
$0
2013 1q
2014 1q
2015 1q
2016 1q
Source: CoStar COMPS®
Source: CoStar COMPS®
U.S. Price/SF Comparison
U.S. Cap Rate Comparison
Based on Retail Building Sales of 15,000 SF and Larger
Based on Retail Building Sales of 15,000 SF and Larger
$250
Denver
US
10.0%
$230 Cap Rate Percentage
Dollars per SF
$190 $170 $150 $130 $110 $90
$50
16
8.0% 7.0% 6.0% 5.0% 4.0% 3.0%
$70
Source: CoStar COMPS®
US
9.0%
$210
2013 1q
Denver
2.0% 2014 1q
2015 1q
2016 1q
2013 1q2013 3q 2014 1q2014 3q 2015 1q2015 3q 2016 1q2016 3q Source: CoStar COMPS®
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market Sales Activity
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©2017 CoStar Group, Inc.
CoStar Retail Statistics
17
Denver – First Quarter 2017
Denver Retail Market A u r o r a
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
8.0%
0.100
7.0%
0.050
5.0%
(0.050)
4.0% 3.0%
(0.100)
6.0% 0.000
2.0% (0.150)
1.0%
(0.200)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$15.50
Sublet SF
0.90
$15.00
0.80
Dollars/SF/Year
0.70
0.60 0.50 0.40
$14.50 $14.00 $13.50 $13.00
0.30 0.20
$12.50
0.10
$12.00
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 703 12,123,999
Vacancy Vacant SF Vacancy % 801,752 6.6%
Net Absorption (974)
Delivered Inventory # Bldgs Total RBA 0 0
UC Inventory # Bldgs Total RBA 4 61,490
Quoted Rates $15.23
2016 4q
703
12,123,999
800,778
6.6%
27,357
1
7,000
2
13,490
2016 3q
702
12,116,999
821,135
6.8%
(144,577)
1
17,950
2
15,320
$13.13
2016 2q
702
12,106,449
666,008
5.5%
24,945
1
3,956
3
33,270
$13.63
0
4
37,226
$13.30
2
21,906
$13.33
0
2
19,457
$12.87
2016 1q
708
12,270,329
854,833
7.0%
(31,748)
0
2015 4q
708
12,270,329
823,085
6.7%
22,536
2
2015 3q
708
12,252,951
828,243
6.8%
(43,142)
0
19,457
$13.20
2015 2q
707
12,249,890
782,040
6.4%
(3,393)
0
0
3
22,518
$12.89
2015 1q
707
12,245,693
774,450
6.3%
(53,421)
1
5,400
2
13,930
$12.65
2014 4q
707
12,242,393
717,729
5.9%
0
0
2
16,269
$12.67
2014 3q
707
12,242,393
718,170
5.9%
(43,633)
0
0
0
0
2014 2q
707
12,242,393
674,537
5.5%
40,924
0
0
0
0
$12.11
2014 1q
707
12,242,393
715,461
5.8%
76,997
1
2,900
0
0
$12.35
0
1
2,900
$12.22
1
2,900
$11.87
3
67,121
$11.44
441
2013 4q
706
12,239,493
789,558
6.5%
140,390
0
2013 3q
706
12,239,493
929,948
7.6%
123,784
3
2013 2q
703
12,172,372
986,611
8.1%
25,735
0
67,121 0
$12.76
Source: CoStar Property®
18
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market B o u l d e r
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
0.060
4.5%
0.050
4.0%
0.040
3.5%
3.0%
0.020 0.010
2.5%
0.000
2.0%
(0.010)
1.5%
(0.020)
0.030
1.0%
(0.030)
0.5%
(0.040) (0.050)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$25.00
Sublet SF
0.25
$24.50 $24.00 Dollars/SF/Year
0.20
0.15
0.10
$23.50 $23.00 $22.50 $22.00 $21.50
0.05
$21.00 $20.50
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 518 7,544,008
Vacancy Vacant SF Vacancy % 227,347 3.0%
Net Absorption (19,939)
Delivered Inventory # Bldgs Total RBA 0 0
UC Inventory # Bldgs Total RBA 2 87,588
Quoted Rates $23.97
2016 4q
518
7,544,008
207,408
2.7%
(41,829)
0
0
1
25,236
$21.80
2016 3q
518
7,544,008
165,579
2.2%
12,830
1
5,500
1
25,236
$23.06
2016 2q
517
7,538,508
172,909
2.3%
12,438
0
0
2
30,736
$23.49
2016 1q
517
7,538,508
185,347
2.5%
4,991
0
0
2
30,736
$24.39
2015 4q
517
7,538,508
190,338
2.5%
48,752
1
21,252
1
5,500
$24.16
2015 3q
519
7,549,020
249,602
3.3%
12,333
1
5,796
1
21,252
$23.87
2015 2q
519
7,547,724
260,639
3.5%
12,452
0
0
2
27,048
$22.91
2015 1q
519
7,547,724
273,091
3.6%
(9,283)
0
0
1
21,252
$22.60
2014 4q
519
7,547,724
263,808
3.5%
14,859
0
0
1
21,252
$21.95
2014 3q
519
7,547,724
278,667
3.7%
44,560
1
1
21,252
$20.81
2
35,252
$20.89
2
35,252
$20.88
14,000
2014 2q
518
7,533,724
309,227
4.1%
3,544
0
2014 1q
518
7,533,724
312,771
4.2%
4,542
1
0
2013 4q
519
7,553,784
337,373
4.5%
(5,540)
0
0
3
38,408
$20.36
2013 3q
519
7,553,784
331,833
4.4%
3,610
0
0
3
38,408
$19.65
2013 2q
519
7,553,784
335,443
4.4%
(10,877)
0
0
2
24,408
$19.45
3,156
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
19
Denver – First Quarter 2017
Denver Retail Market C e n t r a l
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
0.140
6.0%
0.120 5.0%
0.100
4.0%
0.060 3.0%
0.040 0.020
2.0%
0.000 (0.020)
0.080
1.0%
(0.040) (0.060)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$20.00
Sublet SF
1.00
$19.50
0.90
$19.00 Dollars/SF/Year
0.80 0.70
0.60 0.50 0.40 0.30
$17.50 $17.00 $16.50 $16.00
0.20
$15.50
0.10
$15.00
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
$18.50 $18.00
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 2,302 20,710,226
Vacancy Vacant SF Vacancy % 766,651 3.7%
Net Absorption (4,098)
Delivered Inventory # Bldgs Total RBA 3 25,425
UC Inventory # Bldgs Total RBA 8 348,180
Quoted Rates $19.67
2016 4q
2,300
20,688,913
741,240
3.6%
86,192
3
15,900
11
373,605
$19.41
2016 3q
2,301
20,691,650
830,169
4.0%
22,051
2
11,500
8
108,905
$17.99
2016 2q
2,299
20,680,150
840,720
4.1%
101,549
0
7
102,825
$17.23
2016 1q
2,298
20,679,154
941,273
4.6%
(36,270)
5
5
28,621
$16.86
0 22,636
2015 4q
2,294
20,657,039
882,888
4.3%
(41,405)
0
8
35,132
$16.93
2015 3q
2,296
20,667,664
852,108
4.1%
116,118
3
37,750
6
28,136
$16.54
2015 2q
2,292
20,617,775
918,337
4.5%
10,655
1
3,000
6
65,457
$16.63
2015 1q
2,292
20,616,775
927,992
4.5%
65,486
0
0
6
66,007
$16.68 $16.47
2014 4q
2,292
20,616,775
993,478
4.8%
(8,435)
0
2014 3q
2,293
20,641,173
1,009,441
4.9%
27,795
3
2014 2q
2,290
20,625,173
1,021,236
5.0%
(45,088)
0
0
0 16,000 0
3
16,800
4
21,852
$16.11
6
29,552
$16.60
2014 1q
2,292
20,763,082
1,114,057
5.4%
86,476
4
33,680
5
26,500
$16.11
2013 4q
2,288
20,729,402
1,166,853
5.6%
5,479
2
12,600
8
54,180
$15.89
2013 3q
2,286
20,717,968
1,160,898
5.6%
20,304
3
34,588
9
63,236
$16.37
2013 2q
2,284
20,686,953
1,150,187
5.6%
(4,033)
7
142,908
11
93,424
$16.12
Source: CoStar Property®
20
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market C o l o r a d o
B l / C h e r r y
Deliveries, Absorption & Vacancy Delivered SF
M a r k e t
Historical Analysis, All Classes Absorption SF
Vacancy
0.100
3.5%
0.080
3.0%
0.060
2.5%
0.040
2.0%
0.020
1.5%
0.000
1.0%
(0.020)
0.5%
(0.040)
C k
Market Highlights – Class “A, B & C”
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$28.50
Sublet SF
$28.00
0.16
$27.50
0.14
$27.00
Dollars/SF/Year
0.18
0.12 0.10 0.08 0.06
$26.50 $26.00 $25.50 $25.00
0.04
$24.50
0.02
$24.00 $23.50
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 321 5,508,989
Vacancy Vacant SF Vacancy % 155,771 2.8%
2016 4q
320
5,437,114
2016 3q
319
5,377,921
162,656
2016 2q
323
5,390,015
102,868
2016 1q
323
5,390,015
89,960
2015 4q
321
5,364,542
2015 3q
319
5,292,542
2015 2q
320
5,297,242
114,122
Net Absorption 78,760
Delivered Inventory # Bldgs Total RBA 1 71,875
UC Inventory # Bldgs Total RBA 0 0
Quoted Rates $27.03
3.0%
10,659
2
61,007
1
71,875
2.1%
(23,348)
1
15,840
3
132,882
$27.15
1.9%
(12,908)
0
4
148,722
$25.25
0
$27.44
1.7%
11,670
2
25,473
3
144,222
$27.87
1.4%
74,397
2
72,000
4
113,188
$26.63
78,554
1.5%
20,503
0
5
169,348
$24.62
103,757
2.0%
(1,236)
1
1
14,673
$26.69
17,973
76,157
0 3,300
2015 1q
320
5,300,992
106,271
2.0%
3,528
0
0
2
2014 4q
320
5,300,992
109,799
2.1%
4,350
0
0
0
2014 3q
320
5,300,992
114,149
2.2%
22,217
1
2014 2q
320
5,302,704
138,078
2.6%
9,875
0
0
1
5,210
2014 1q
320
5,302,704
147,953
2.8%
(4,958)
1
2,600
1
5,210
$26.81
2013 4q
319
5,300,104
140,395
2.6%
23,744
1
8,183
2
7,810
$22.03
2013 3q
318
5,291,921
155,956
2.9%
1,539
2
32,055
3
15,993
$24.00
2013 2q
317
5,261,873
127,447
2.4%
46,931
2
16,900
3
40,238
$23.51
5,210
0
$26.31
0
$32.05
0
$32.09 $28.32
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
21
Denver – First Quarter 2017
Denver Retail Market D o w n t o w n
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
0.030
6.0%
0.020
5.0%
4.0%
0.000 3.0% (0.010) 2.0%
(0.020)
0.010
1.0%
(0.030) (0.040)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$25.60
Sublet SF
0.18
$25.40
0.16
$25.20 Dollars/SF/Year
0.14
0.12 0.10 0.08 0.06
$25.00 $24.80 $24.60 $24.40
0.04
$24.20 0.02
$24.00
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 230 3,750,216
Vacancy Vacant SF Vacancy % 153,593 4.1%
Net Absorption 12,189
Delivered Inventory # Bldgs Total RBA 0 0
UC Inventory # Bldgs Total RBA 4 103,758
Quoted Rates $25.10
2016 4q
230
3,750,216
165,782
4.4%
(30,311)
0
0
3
87,305
2016 3q
230
3,750,216
135,471
3.6%
6,868
0
0
3
87,305
$25.45 $25.07
2016 2q
231
3,751,842
143,965
3.8%
13,116
0
0
1
68,000
$24.50
2016 1q
232
3,757,842
163,081
4.3%
(16,975)
0
0
1
68,000
$24.91
2015 4q
232
3,757,842
146,106
3.9%
5,626
0
0
1
68,000
$25.26
2015 3q
232
3,757,842
151,732
4.0%
(3,790)
0
0
1
68,000
$26.93
2015 2q
232
3,757,842
147,942
3.9%
(14,971)
0
0
1
68,000
2015 1q
232
3,757,842
132,971
3.5%
5,554
0
0
0
$29.31
0
$29.29 $28.00
2014 4q
232
3,757,842
138,525
3.7%
(12,892)
0
0
0
0
2014 3q
232
3,757,842
125,633
3.3%
23,801
0
0
0
0
$25.04
2014 2q
232
3,757,842
149,434
4.0%
(6,700)
0
0
0
0
$25.06
2014 1q
233
3,815,767
200,659
5.3%
1,950
0
0
0
0
$21.00
2013 4q
233
3,815,767
202,609
5.3%
6,915
0
0
0
0
$20.03
2013 3q
233
3,815,767
209,524
5.5%
(16,059)
0
0
0
0
$20.45
2013 2q
233
3,815,767
193,465
5.1%
(12,798)
0
0
0
0
$19.26
Source: CoStar Property®
22
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market L o n g m o n t
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy
Absorption SF
Vacancy
0.300
10.0%
0.250
9.0%
0.200
8.0% 7.0%
0.150
6.0%
0.100
5.0% 0.050
4.0%
0.000
Delivered SF
Historical Analysis, All Classes
3.0%
(0.050)
2.0%
(0.100)
1.0%
(0.150)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$15.00
Sublet SF
0.57 0.56
$14.50 Dollars/SF/Year
0.55 0.54
0.53 0.52 0.51 0.50 0.49
$14.00
$13.50
$13.00
0.48 0.47
$12.50
0.46 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 520 6,340,520
Vacancy Vacant SF Vacancy % 513,856 8.1%
Net Absorption 33,837
Delivered Inventory # Bldgs Total RBA 0 0
2016 4q
520
6,340,520
547,693
8.6%
9,456
0
2016 3q
520
6,340,520
557,149
8.8%
(22,221)
1
2,200
0
UC Inventory # Bldgs Total RBA 0 0
Quoted Rates $13.23
0
0
$13.65
0
0
$14.06
2016 2q
518
6,329,170
523,578
8.3%
160,819
1
136,444
2
11,350
2016 1q
518
6,196,758
551,985
8.9%
40,716
2
47,500
2
145,594
$14.05 $14.55
2015 4q
517
6,150,060
546,003
8.9%
156,871
13
276,246
3
183,944
$14.69 $14.43
2015 3q
504
5,873,814
426,628
7.3%
(18,583)
0
0
16
460,190
2015 2q
504
5,873,814
408,045
6.9%
10,300
0
0
15
420,190
$14.18
2015 1q
504
5,873,814
418,345
7.1%
21,532
0
0
15
420,190
$14.22
2,545
$14.33
2014 4q
507
5,878,408
444,471
7.6%
0
0
15
420,190
2014 3q
506
5,874,238
442,846
7.5%
(30,595)
0
0
15
287,916
$14.77
2014 2q
506
5,874,238
412,251
7.0%
18,741
0
0
15
287,916
$14.77
2014 1q
507
5,967,838
524,592
8.8%
(85,481)
2
14,034
14
283,746
$14.01
2013 4q
505
5,953,804
425,077
7.1%
31,430
1
4,114
16
297,780
$13.54
2013 3q
504
5,949,690
452,393
7.6%
10,536
0
0
16
293,213
$14.22
2013 2q
504
5,949,690
462,929
7.8%
(3,908)
0
0
2
11,119
$14.51
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
23
Denver – First Quarter 2017
Denver Retail Market N o r t h
O u t l y i n g
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy
Absorption SF
Vacancy
0.030
7.0%
0.020
6.0%
0.010
5.0%
0.000
4.0%
(0.010)
3.0%
(0.020)
2.0%
(0.030)
1.0%
(0.040)
Delivered SF
Historical Analysis, All Classes
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$13.60
Sublet SF
0.04
$13.40
0.04
$13.20 Dollars/SF/Year
0.03
0.03 0.02 0.02
$12.80 $12.60 $12.40
0.01
$12.20
0.01
$12.00
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
$13.00
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 196 1,400,333
Vacancy Vacant SF Vacancy % 20,622 1.5%
Net Absorption 74
Delivered Inventory # Bldgs Total RBA 0 0
UC Inventory # Bldgs Total RBA 0 0
Quoted Rates $13.47
2016 4q
195
1,390,839
20,696
1.5%
9,242
0
0
0
0
$12.84
2016 3q
195
1,390,839
29,938
2.2%
1,344
0
0
0
0
$12.84
2016 2q
195
1,390,839
31,282
2.2%
5,369
0
0
0
0
$12.72
2016 1q
195
1,390,839
36,651
2.6%
8,579
0
0
0
0
$12.58
2015 4q
195
1,390,839
45,230
3.3%
21,419
2015 3q
195
1,390,839
66,649
4.8%
2015 2q
195
1,390,839
67,242
4.8%
2015 1q
195
1,390,839
45,442
2014 4q
195
1,390,839
2014 3q
195
0
0
0
0
$12.58
0
0
0
0
$12.23
(21,800)
0
0
0
0
$11.24
3.3%
11,108
0
0
0
0
$9.64
56,550
4.1%
23,453
0
0
0
0
$9.95
1,390,839
80,003
5.8%
6,852
0
0
0
0
$16.74 $16.78
593
2014 2q
195
1,390,839
86,855
6.2%
(657)
0
0
0
0
2014 1q
195
1,390,839
86,198
6.2%
(29,658)
1
3,600
0
0
$17.10
2013 4q
194
1,387,239
52,940
3.8%
(10,914)
0
0
1
3,600
$16.20
2013 3q
194
1,387,239
42,026
3.0%
2013 2q
194
1,387,239
41,784
3.0%
(242) 4,094
0
0
1
3,600
$15.91
0
0
1
3,600
$15.59
Source: CoStar Property®
24
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market N o r t h e a s t
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
0.300
7.0%
0.250
6.0% 5.0%
0.150
4.0%
0.100 3.0%
0.050
0.200
2.0%
0.000
1.0%
(0.050) (0.100)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$18.00
Sublet SF
1.00
$17.50
0.90
Dollars/SF/Year
0.80 0.70
0.60 0.50 0.40
$17.00 $16.50 $16.00
0.30
$15.50
0.20 0.10
$15.00
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 1,209 16,135,471
2016 4q
1,208
2016 3q
1,204
16,089,692
16,133,192
Vacancy Vacant SF Vacancy % 739,652 4.6%
Net Absorption 23,460
Delivered Inventory # Bldgs Total RBA 2 24,666
UC Inventory # Bldgs Total RBA 16 165,349
Quoted Rates $17.45
760,833
4.7%
109,854
4
43,500
6
63,848
$16.17
827,187
5.1%
71,036
1
3,000
8
92,166
$15.87 $16.82
2016 2q
1,203
16,086,692
895,223
5.6%
(55,392)
0
7
71,166
2016 1q
1,202
16,077,807
830,946
5.2%
102,329
6
39,442
0
3
43,885
$16.07
2015 4q
1,200
16,075,789
931,257
5.8%
(33,068)
3
27,426
7
48,327
$15.90 $15.39
2015 3q
1,197
16,048,363
870,763
5.4%
42,190
1
14,048
8
63,624
2015 2q
1,195
16,030,179
894,769
5.6%
(38,625)
2
11,400
6
58,110
$15.14
2015 1q
1,193
16,018,779
844,744
5.3%
242,840
7
201,655
3
15,536
$14.48
2014 4q
1,186
15,817,124
885,929
5.6%
68,023
4
8
206,655
$14.11
2014 3q
1,181
15,768,110
904,938
5.7%
82,151
2
46,000
12
250,669
$14.56
2014 2q
1,177
15,710,456
929,435
5.9%
61,515
4
92,661
13
253,447
$13.60
2014 1q
1,172
15,605,483
885,977
5.7%
91,342
9
79,061
11
220,147
$13.83
2013 4q
1,163
15,526,422
898,258
5.8%
161,933
9
199,497
16
241,554
$14.06
2013 3q
1,153
15,322,235
856,004
5.6%
147,688
1
90,000
22
400,310
$14.12
2013 2q
1,151
15,231,284
6.0%
352
0
13
233,816
$13.99
912,741
46,115
0
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
25
Denver – First Quarter 2017
Denver Retail Market N o r t h e r n
C o l o r a d o
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
M a r k e t
Historical Analysis, All Classes Absorption SF
Vacancy
0.300
6.0%
0.250 5.0% 0.150
4.0%
0.100 3.0% 0.050 0.000
2.0%
0.200
(0.050) 1.0% (0.100) (0.150)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$18.00
Sublet SF
1.40
$16.00
1.20
Dollars/SF/Year
$14.00
1.00 0.80 0.60
$12.00 $10.00 $8.00 $6.00
0.40
$4.00
0.20
$2.00 $0.00
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 2,164 26,792,032
Vacancy Vacant SF Vacancy % 1,214,364 4.5%
Net Absorption (34,965)
Delivered Inventory # Bldgs Total RBA 3 50,078
UC Inventory # Bldgs Total RBA 16 696,829
Quoted Rates $15.42
2016 4q
2,161
26,741,954
1,129,321
4.2%
92,170
4
38,772
17
546,707
2016 3q
2,157
26,703,182
1,182,719
4.4%
10,979
7
75,091
18
518,379
$13.54
2016 2q
2,150
26,628,091
1,118,607
4.2%
(86,374)
3
31,817
20
540,363
$12.96
2016 1q
2,147
26,606,527
1,010,669
3.8%
120,168
7
46,462
17
477,162
$12.67
2015 4q
2,142
26,575,779
1,100,089
4.1%
258,911
8
191,518
19
179,924
$12.78
2015 3q
2,137
26,444,290
1,227,511
4.6%
9,631
0
2015 2q
2,137
26,444,290
1,237,142
4.7%
39,826
1
2015 1q
2,136
26,393,539
1,226,217
4.6%
128,635
2014 4q
2,135
26,316,300
1,277,613
4.9%
276,534
2014 3q
2,133
26,166,315
1,404,162
5.4%
74,763
1
0
$14.00
19
300,478
$12.85
55,000
17
272,067
$13.04
3
87,757
11
227,411
$12.79
4
162,588
7
221,988
$13.01
8,300
9
345,755
$12.70
2014 2q
2,128
26,091,551
1,404,161
5.4%
24,802
1
5,650
11
349,342
$12.88
2014 1q
2,126
26,077,177
1,414,589
5.4%
117,802
5
29,229
9
276,128
$12.63
2013 4q
2,122
26,123,285
1,578,499
6.0%
(63,348)
2
9,500
8
80,593
$12.43
2013 3q
2,121
26,114,090
1,505,956
5.8%
75,865
0
0
9
49,337
$12.38
2013 2q
2,121
26,114,090
1,581,821
6.1%
137,426
4
2
7,572
$12.46
28,830
Source: CoStar Property®
26
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market N o r t h w e s t
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
10.0%
0.200
9.0% 8.0% 7.0%
0.100
6.0% 0.050
5.0% 4.0%
0.000
0.150
3.0% 2.0%
(0.050)
1.0% (0.100)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$14.20
Sublet SF
1.80
$14.00 1.75
Dollars/SF/Year
1.70
1.65 1.60 1.55
$13.80 $13.60 $13.40 $13.20
1.50
$13.00 1.45
$12.80
1.40 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 1,644 26,404,557
Vacancy Vacant SF Vacancy % 1,674,343 6.3%
Net Absorption 41,380
Delivered Inventory # Bldgs Total RBA 4 29,724
UC Inventory # Bldgs Total RBA 14 248,299
Quoted Rates $14.10
2016 4q
1,640
26,374,833
1,685,999
6.4%
179,765
3
144,341
9
210,724
$13.56
2016 3q
1,638
26,231,505
1,722,436
6.6%
(79,945)
3
30,554
10
320,665
$13.70
2016 2q
1,635
26,200,951
1,611,937
6.2%
179,019
4
33,850
10
211,019
$13.31
2016 1q
1,631
26,170,771
1,760,776
6.7%
98,335
5
76,804
9
191,609
$13.26
2015 4q
1,626
26,093,967
1,782,307
6.8%
137,241
2
11,000
12
130,759
$13.13
2015 3q
1,633
26,270,534
2,096,115
8.0%
(43,182)
1
31,600
9
89,654
$13.07
2015 2q
1,633
26,244,214
2,026,613
7.7%
54,880
2
18,000
7
82,650
$12.79
2015 1q
1,631
26,226,214
2,063,493
7.9%
(9,034)
5
29,273
4
56,550
$12.66
2014 4q
1,626
26,196,941
2,025,186
7.7%
107,873
3
22,291
8
78,873
$12.19
2014 3q
1,626
26,199,120
2,135,238
8.2%
152,043
4
36,363
9
78,916
$12.27
2,245,773
8.6%
61,254
0
0
11
80,524
$13.12
2,227,460
8.5%
54,414
1
4,450
12
146,091
$12.85
2014 2q
1,621
2014 1q
1,618
26,157,612
2013 4q
1,617
26,073,595
2,277,424
8.7%
171,506
0
0
5
88,380
$12.74
2013 3q
1,617
26,073,595
2,448,930
9.4%
(10,675)
0
0
3
48,617
$12.80
2013 2q
1,617
26,073,595
2,438,255
9.4%
57,277
0
0
1
2,258
$12.76
26,078,045
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
27
Denver – First Quarter 2017
Denver Retail Market S o u t h
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
5.0%
0.200
4.5%
0.150
4.0%
3.5% 3.0%
0.050
2.5% 0.000
2.0%
0.100
1.5%
(0.050)
1.0% (0.100)
0.5%
(0.150)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$19.00
Sublet SF
0.80
$18.50
0.70
Dollars/SF/Year
0.60
0.50 0.40 0.30 0.20
$18.00
$17.50
$17.00
0.10
$16.50
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 897 18,012,084
2016 4q
897
18,012,084
2016 3q
896
18,011,876
2016 2q
894
17,951,876
2016 1q
893
17,902,197
2015 4q
890
17,830,977
2015 3q
888
2015 2q
Vacancy Vacant SF Vacancy % 621,681 3.5% 699,449
Net Absorption 77,768
Delivered Inventory # Bldgs Total RBA 0 0
UC Inventory # Bldgs Total RBA 2 15,583
Quoted Rates $17.87
3.9%
58,478
2
7,108
2
15,583
$17.74
4.2%
29,421
2
60,000
3
15,191
$17.34
727,140
4.1%
(28,167)
2
55,048
4
67,108
$18.83
649,294
3.6%
99,051
3
71,220
4
115,048
$18.52
677,125
3.8%
22,250
2
7,323
6
181,268
$18.23
17,823,654
692,052
3.9%
40,508
0
0
8
188,591
$17.42
888
17,823,654
732,560
4.1%
(133,914)
0
0
7
174,371
$18.28
2015 1q
888
17,823,654
598,646
3.4%
147,753
2
92,348
4
112,048
$18.25
2014 4q
888
17,738,532
661,277
3.7%
80,490
1
28,068
4
105,848
$18.12
2014 3q
887
17,710,464
713,699
4.0%
25,230
2
16,581
4
125,416
$18.35 $18.85
757,719
2014 2q
884
17,755,795
784,260
4.4%
32,405
1
27,000
7
75,022
2014 1q
883
17,728,795
789,665
4.5%
(24,647)
2
12,075
5
60,373
$18.38
2013 4q
881
17,716,720
752,943
4.2%
95,803
1
7,996
4
47,075
$19.36
2013 3q
880
17,708,724
840,750
4.7%
91,118
1
110,000
2
16,071
$19.23
2013 2q
879
17,598,724
821,868
4.7%
239,625
3
209,791
2
117,996
$19.49
Source: CoStar Property®
28
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market S o u t h e a s t
O u t l y i n g
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
M a r k e t
Historical Analysis, All Classes Absorption SF
Vacancy
0.350
4.5%
0.300
4.0% 3.5% 3.0%
0.200
2.5% 0.150 2.0% 0.100
1.5%
0.050
0.250
1.0%
0.000
0.5%
(0.050)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$21.00
Sublet SF
0.16
$20.50
0.14
$20.00 Dollars/SF/Year
0.12
0.10 0.08 0.06
$19.50 $19.00 $18.50 $18.00
0.04
$17.50
0.02
$17.00 $16.50
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 300 3,483,009
Vacancy Vacant SF Vacancy % 138,212 4.0%
Net Absorption 306,454
Delivered Inventory # Bldgs Total RBA 5 317,747
UC Inventory # Bldgs Total RBA 2 46,277
Quoted Rates $20.55
2016 4q
295
3,165,262
126,919
4.0%
77,953
2
119,125
7
364,024
$18.83
2016 3q
293
3,046,137
85,747
2.8%
5,403
1
10,113
8
476,872
$18.06
2016 2q
292
3,036,024
81,037
2.7%
13,509
0
0
8
446,985
$18.77
2016 1q
292
3,036,024
94,546
3.1%
(12,225)
1
5,803
8
446,985
2015 4q
291
3,030,221
76,518
2.5%
33,055
3
24,751
3
131,786
2015 3q
288
3,005,470
84,822
2.8%
9,701
1
4,000
4
30,554
$17.73
2015 2q
287
3,001,470
90,523
3.0%
(14,108)
0
0
4
28,751
$17.43
7,560
2015 1q
287
3,001,470
76,415
2.5%
(5,862)
0
0
1
2014 4q
287
3,001,470
70,553
2.4%
6,603
0
0
0
$19.19 $17.62
$17.19
0
$16.95 $16.54
2014 3q
287
3,001,470
77,156
2.6%
(18,046)
0
0
0
0
2014 2q
287
3,001,470
59,110
2.0%
(1,659)
0
0
0
0
$16.51
2014 1q
287
3,001,470
57,451
1.9%
51,148
1
4,945
0
0
$15.92
7,306
0
0
$15.99
2013 4q
286
2,996,525
103,654
3.5%
1
4,945
2013 3q
286
2,996,525
110,960
3.7%
(129)
2
14,572
1
4,945
$15.92
2013 2q
284
2,981,953
96,259
3.2%
29,717
1
4,171
2
14,572
$16.03
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
29
Denver – First Quarter 2017
Denver Retail Market S o u t h e a s t
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy
Absorption SF
Vacancy
0.250
6.0%
0.200
5.0%
0.150
4.0%
0.100
3.0%
0.050
2.0%
0.000
1.0%
(0.050)
Delivered SF
Historical Analysis, All Classes
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$19.80
Sublet SF
0.70
$19.60
0.60
Dollars/SF/Year
$19.40
0.50 0.40 0.30
$19.20 $19.00 $18.80 $18.60
0.20
$18.40
0.10
$18.20 $18.00
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 797 14,814,497
Vacancy Vacant SF Vacancy % 603,644 4.1%
Net Absorption (11,772)
Delivered Inventory # Bldgs Total RBA 0 0
UC Inventory # Bldgs Total RBA 3 23,235
Quoted Rates $19.53
2016 4q
797
14,814,497
591,872
4.0%
96,220
9
88,628
1
10,000
$18.74
2016 3q
788
14,725,869
599,464
4.1%
39,834
7
113,076
10
98,628
$18.64
2016 2q
782
14,626,052
539,481
3.7%
(27,863)
3
34,901
15
197,323
$18.82
2016 1q
780
14,594,815
480,381
3.3%
36,674
3
13,432
17
222,224
$18.65
2015 4q
777
14,581,383
503,623
3.5%
186,734
5
200,174
7
103,609
$18.59
2015 3q
772
14,381,209
490,183
3.4%
71,997
1
4,925
8
217,805
$18.64
2015 2q
771
14,376,284
557,255
3.9%
82,443
3
62,285
7
214,412
$18.74
2015 1q
767
14,302,902
566,316
4.0%
30,050
1
847
7
266,382
$18.24
2014 4q
766
14,302,055
595,519
4.2%
89,259
2
4,243
6
84,229
$17.72
2014 3q
765
14,316,275
698,998
4.9%
189,160
1
6,612
6
69,745
$17.52
2014 2q
763
14,187,886
759,769
5.4%
36,560
2
26,409
6
143,479
$17.19
2014 1q
761
14,161,477
769,920
5.4%
31,138
2
48,916
5
155,243
$17.22
2013 4q
760
14,118,853
758,434
5.4%
(28,492)
1
4,945
6
203,714
$17.39
2013 3q
759
14,113,908
724,997
5.1%
49,872
0
0
6
86,882
$17.44
2013 2q
759
14,113,908
774,869
5.5%
55,535
0
0
2
9,069
$17.56
Source: CoStar Property®
30
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market S o u t h w e s t
O u t l y i n g
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
0.025
14.0%
0.020
12.0%
0.015
0.005
8.0%
0.000 6.0%
(0.005) (0.010)
10.0%
0.010
4.0%
(0.015) 2.0%
(0.020) (0.025)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$12.90
Sublet SF
$12.80
0.12
$12.70 Dollars/SF/Year
0.14
0.10 0.08 0.06 0.04
$12.50 $12.40 $12.30 $12.20 $12.10
0.02
$12.00 $11.90
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
$12.60
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 181 1,162,740
Vacancy Vacant SF Vacancy % 81,994 7.1%
Net Absorption 14,739
Delivered Inventory # Bldgs Total RBA 0 0
UC Inventory # Bldgs Total RBA 0 0
Quoted Rates $12.82
2016 4q
180
1,159,096
96,733
8.3%
2,183
0
0
0
0
$12.26
2016 3q
180
1,159,096
98,916
8.5%
1,904
0
0
0
0
$12.28 $12.44
2016 2q
180
1,159,096
100,820
8.7%
17,273
0
0
0
0
2016 1q
180
1,159,096
118,093
10.2%
11,562
0
0
0
0
$12.23
2015 4q
180
1,159,096
129,655
11.2%
(2,803)
0
0
0
0
$12.95
2015 3q
180
1,159,096
126,852
10.9%
6,430
0
0
0
0
$12.17
2015 2q
180
1,159,096
133,282
11.5%
8,544
0
0
0
0
$12.91
2015 1q
180
1,159,096
141,826
12.2%
(20,707)
0
0
0
0
$12.97
2014 4q
180
1,159,096
121,119
10.4%
11,451
0
0
0
0
$12.14
2014 3q
180
1,159,096
132,570
11.4%
3,240
0
0
0
0
$11.99
2014 2q
180
1,159,096
135,810
11.7%
18,420
0
0
0
0
$12.36
2014 1q
180
1,159,096
154,230
13.3%
(11,807)
1
8,240
0
0
$12.45
2013 4q
179
1,150,856
134,183
11.7%
3,903
0
0
1
8,240
$12.60
2013 3q
179
1,150,856
138,086
12.0%
(31,778)
0
0
1
8,240
$12.90
2013 2q
179
1,150,856
106,308
9.2%
(3,172)
0
0
0
0
$13.03
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
31
Denver – First Quarter 2017
Denver Retail Market S o u t h w e s t
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
9.0%
0.250
8.0%
0.200
7.0%
6.0%
0.100
5.0%
0.050
4.0% 3.0%
0.000
0.150
2.0% (0.050)
1.0%
(0.100)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$14.60
Sublet SF
0.90
$14.40
0.80
Dollars/SF/Year
0.70
0.60 0.50 0.40
$14.20 $14.00 $13.80 $13.60
0.30 0.20
$13.40
0.10
$13.20
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 469 10,364,168
Vacancy Vacant SF Vacancy % 544,837 5.3%
Net Absorption (44,269)
Delivered Inventory # Bldgs Total RBA 0 0
2016 4q
469
10,364,168
500,568
4.8%
54,487
2
2016 3q
467
10,353,703
544,590
5.3%
206,963
0
2016 2q
467
10,353,703
751,553
7.3%
39,950
3
2016 1q
463
10,325,570
763,370
7.4%
17,174
0
2015 4q
463
10,325,570
780,544
7.6%
37,081
1
10,465 0 22,733 0 15,000
UC Inventory # Bldgs Total RBA 1 6,912
Quoted Rates $13.78
1
6,912
2
10,465
$13.86 $14.15
2
10,465
$14.42
6
38,598
$13.72
5
33,678
$13.53
2015 3q
462
10,310,570
802,625
7.8%
(40,816)
0
0
2
20,000
$12.90
2015 2q
462
10,310,570
761,809
7.4%
2,290
0
0
1
15,000
$15.06
2015 1q
463
10,344,994
798,523
7.7%
2014 4q
462
10,326,680
761,223
7.4%
1,879
0
2014 3q
462
10,326,680
763,102
7.4%
98,459
3
(18,986)
2
2014 2q
458
10,182,784
717,665
7.0%
(41,513)
1
2014 1q
458
10,181,366
674,734
6.6%
(4,238)
0
19,399 0
0
0
$15.07
2
19,399
$15.91
136,396
2
19,399
$15.68
7,700
4
143,896
$15.53
0
5
151,596
$14.55
2013 4q
458
10,181,366
670,496
6.6%
(59,829)
0
0
3
139,096
$14.75
2013 3q
457
10,179,165
608,466
6.0%
57,853
1
3,606
1
2,201
$14.79
2013 2q
455
10,161,515
648,669
6.4%
105,157
1
74,378
3
19,851
$14.92
Source: CoStar Property®
32
CoStar Retail Statistics
©2017 CoStar Group, Inc.
First Quarter 2017 – Denver
Denver Retail Market W e s t
M a r k e t
Market Highlights – Class “A, B & C”
Deliveries, Absorption & Vacancy Delivered SF
Historical Analysis, All Classes Absorption SF
Vacancy
0.180
7.0%
0.160
6.0%
0.140
0.100
4.0%
0.080 3.0%
0.060 0.040
5.0%
0.120
2.0%
0.020 1.0%
0.000 (0.020)
0.0% 2014 1q
2014 2q
2014 3q
2014 4q
2015 1q
2015 2q
2015 3q
2015 4q
2016 1q
2016 2q
2016 3q
2016 4q
2017 1q
Source: CoStar Property®
Vacant Space
Quoted Rental Rates
Historical Analysis, All Classes
Historical Analysis, All Classes
Direct SF
$15.60
Sublet SF
1.20
$15.40
Dollars/SF/Year
1.00
0.80
0.60
$15.20 $15.00 $14.80
0.40
$14.60
0.20
$14.40 $14.20
0.00 2016 1q
2016 2q
2016 3q
2016 4q
2016 1q
2017 1q
Source: CoStar Property®
Period 2017 1q
2016 3q
2017 1q
Source: CoStar Property®
Existing Inventory # Bldgs Total RBA 2,295 23,691,648
Vacancy Vacant SF Vacancy % 809,894 3.4%
Net Absorption 116,491
Delivered Inventory # Bldgs Total RBA 5 58,768
UC Inventory # Bldgs Total RBA 8 167,765
Quoted Rates $15.36
2016 4q
2,290
23,632,880
867,617
3.7%
4,226
1
3,266
12
211,833
$15.37
2016 3q
2,290
23,646,801
885,764
3.7%
55,981
2
56,750
13
215,099
$15.02
2016 2q
2,288
23,590,051
884,995
3.8%
143,462
0
2016 1q
2,290
23,597,911
1,036,317
4.4%
150,300
5
0 39,692
10
158,491
$15.13
9
148,491
$14.68
2015 4q
2,287
23,581,781
1,170,487
5.0%
56,369
5
71,216
8
82,915
$14.54
2015 3q
2,283
23,512,773
1,157,848
4.9%
44,606
4
14,825
11
115,463
$14.60
2015 2q
2,279
23,497,948
1,187,629
5.1%
160,229
3
37,732
9
86,041
$14.72
2015 1q
2,278
23,466,516
1,316,426
5.6%
15,768
4
51,801
8
60,660
$14.69 $14.15
2014 4q
2,277
23,428,601
1,294,279
5.5%
9,408
4
41,716
9
97,348
2014 3q
2,274
23,421,377
1,296,463
5.5%
(6,395)
1
2,993
9
95,332
$14.17
2014 2q
2,274
23,445,427
5.6%
124,746
2
8,356
8
72,384
$14.17
2014 1q
2,278
23,493,054
1,486,491
6.3%
110,145
4
13,892
6
29,248
$14.00
2013 4q
2,274
23,479,162
1,582,744
6.7%
(11,894)
4
46,444
7
30,664
$14.09
2013 3q
2,270
23,569,341
1,661,029
7.0%
66,043
2
10
74,277
$12.75
2013 2q
2,268
23,552,301
1,710,032
7.3%
(11,505)
3
11
89,236
$12.72
1,314,118
11,207 34,048
Source: CoStar Property®
©2017 CoStar Group, Inc.
CoStar Retail Statistics
33
Personal Profile William A. Gary, MBA, MIM Principal & Managing Tenant/Buyer Representative Having successfully negotiated over 400 transactions during 29+ years in the industry, William Gary is a very, very experienced commercial estate professional. Described by his clients and peers as "direct, creative, organized and professional," Will has earned the wisdom that comes from having a diverse business background. Christopher P. Gallo of KPMG Peat Marwick noted that Will has "that rare quality of both detail and 'big picture' real estate expertise." With world-class learning experiences at Cushman & Wakefield, Frederick Ross Company (now Newmark Grubb Knight Frank), Iliff, Thorn & Company (now CBRE) and CoRE Partners, Will has pushed himself to learn his craft in the rough and tough arena of commercial real estate. Prior to entering commercial real estate, Will worked in Metro New York City in national brand advertising at Benton & Bowles (now Publicis) and in consumer goods marketing with Richardson-Vicks (now Procter & Gamble). Will has done a lot in the world of big-time, corporate business. A patient and detailed professional, Will prides himself in finding creative and effective solutions to problems. "He has a reputation of getting the job done, and done right," says Phil Dunne, Executive Director of the Texas Medical Foundation. With decades at the table as Tenant Rep, Will has honed his craft and become a very sharp, master negotiator. Superior negotiators are hard to find and Will has earned his stripes in this department. Will has received many honors in advertising and real estate. He received "Creative Deal of the Year" while at Cushman & Wakefield for a lease with Pet Expo, a pet superstore. The Flick Report named him to their "All-Star Line-Up" for transactions totaling 236,345 square feet. He has been a Commercial Broker in Austin, Texas, and in Metro Denver/Boulder, Colorado. Teresa Krieger, CFO of Applegate Group, a regional water resources engineering firm, said, “I have been working with William for over the past 10 years. He has been instrumental in finding us great new office space. He is an excellent negotiator and has very creative ideas when it comes to initial leases and lease renewals. William was also able to find a subtenant for some extra office space we had so that we could reduce our rental expenses until we relocated. He has so much knowledge in this area and is so effective, I will continue to use him and recommend him for commercial real estate transactions.” Performing at high levels for his clients is not new to Will. He won academic scholarships to attend Southern Methodist University ("SMU") in Dallas, Texas, and graduated with honors in Economics and an MBA in Marketing. Will also earned an MIM (Master of International Management) with highest honors at the highly renowned Thunderbird School of Global Management in Phoenix/Glendale, Arizona. ITRA MacLaurin Williams strongly believes in giving back to the community and has completed pro bono Tenant Representation projects for Colorado Preservation, Inc., a Montessori charter school, Al-Anon Service Center, Family Resource Center Association and Bicycle Colorado. In his leisure time, Will enjoys road cycling and ITRA MacLaurin Williams has proudly sponsored two amateur cycling teams, Rocky Mountain Road Club ("RMRC") in conjunction with Turin Bicycles and also COBRAS.
Be Represented. Not brokered.™ 9233 Park Meadows Drive • Suite 155 • Lone Tree, CO USA 80124-5426 • office 303.294.0277 • cell 303.901.1108 [email protected] • www.MacLW.com