Local market remains strong amid rising rates INSIDE Large is out, and smaller, more economic developments rule the day Retail evolution Retailers who do not embrace AI will be at a competitive disadvantage AI revolution PAGE 15 November 2023 PAGE 8 T he retail real estate market in metro Denver continues to outperform the national market, according to new reports from CBRE Research. Key fundamentals in Denver, like asking rents, absorption, and invest- ment sales, show solid momentum despite economic headwinds. Notably, the direct vacancy rate in metro Denver sits at 6%, which is down 30 basis points from a year ago. The southwest submarket saw the largest annual drop in vacancy after falling 70 bps to 3%. This indicates demand for retail space remains healthy in metro Denver, especially in suburban submarkets. Nationally, the availability rate hit an 18-year low of 4.8% in the third quarter, show- ing the supply- demand balance is tight across the entire country. Driven by the low vacancy rates, the average retail ask- ing rental rate in metro Denver rose 1.8% quarter over quarter to end at $19.90 per square foot triple net. That outpaces the 0.4% national asking rent growth recorded for the third quarter. With vacancy low, Denver landlords have remained confident, push- ing rents higher as tenant demand persists. Net absorption remained positive in metro Denver, with nearly 25,000 sf absorbed in the third quarter. This brought the year-to-date total absorption to a strong 485,000 sf, which was largely driven by the suburban submarkets. The southeast submarket saw the highest absorption this quarter, fol- lowed by the south submarket. On a national level, there was positive absorption across all retail property types. New construction completions slowed significantly in Denver, with only 74,000 sf delivered in the third quarter. This represents a 68% decrease from last quarter and 64% decrease from a year ago. Notable projects completed this quar- ter were smaller, neighborhood- Please see Lyons, Page 17 Brad Lyons Executive vice president, CBRE National Retail Partners – Mountain Matthew Henrichs Senior vice president, CBRE National Retail Partners – Mountain Selling things people are not buying online but are using every day Strip mall steps up PAGE 13