Colorado-Real-Estate-Journal_391750

Page 18 - March 20-April 2, 2024 www.crej.com Retail 1,766 – 16,420 SF available Lease rates $13.50 SF/YR - $24.00 SF/YR 2 retail end caps and 1 in-line unit Easy access & visibility to I-225, 6th Ave. & Sable Blvd. Monument signage, ample parking Charles Nusbaum 303-454-5420 6th Ave. & Sable Plaza 6th Ave. & Sable Blvd., Aurora SE Denver Of ce Available For Lease 2015 S. Dayton St., Denver 6,200 SF 1st oor of ce 2 reception area, 12 of ces, conference rms. Large training room and much more Server room, back up generator and ber optics to the building, Ample parking Easy access form Parker Rd., Iliff Ave., Havana St., & I-225 Louis Lee 303-454-5416 1528 Wazee Street Denver, CO 80202 n O: 303.623.0200 n F: 303.454.5400 n www.antonoff.com 2,634 RSF – 5,867 RSF available including 2,675 RSF 2d generation restaurant on endcap Fantastic visibility & exposure to S. Colorado Blvd. Access from two full signalized intersections Doug Antonoff, Antonoff & Co. 303-454-5417 Chris Katsaros 303-454-5413 3 exceptional leasing opportunities at Century 21 Plaza 1350 – 1390 S. Colorado Blvd. Development Land For Sale - $1,650,000 6750-6760 Hwy. 2, Commerce City 2.42 Acres One of a few remaining lg. parcels left to be developed! Holly St. & Hwy. 2 – main through fare in Commerce City Maximum exposure to Hwy. 2 Potential for mixed-use building height of 50’ per zoning approval Zoning: C-3 – possible to re-zone Chris Katsaros 303-454-5413 Development Land Available 1801 E. Colfax Ave. 0.36 acres For Sale/Land Lease/Build to Suit Located at signalized hard corner Suitable for retail/drive-thru, of ce or apts. up to 5 -7 stories Incentives for affordable housing Contact broker for more information Louis Lee 303-454-5416 Chris Katsaros 303-454-5413 Fully Restored Historic LoDo Building For Sale or Lease - 1810 Blake St. Great value add or owner/user opportunity Ultracool retail and/or of ce First oor available immediately – 3,125 RSF Entire building (9,375 RSF) available as of Aug. 31, 2025 High ceilings, exposed brick, hardwood oors Contact broker for sales price and lease rate Doug Antonoff, Antonoff & Co. 303-454-5417 I n November 2022, I wrote an article about how suburban retail (multitenant retail located in the counties of Denver, Adams, Arapahoe, Broomfield, Douglas and Jefferson) will be the next investment frontier. From Novem- ber 2022 to present, multitenant retail investment sales totaled $201 million – a whopping $118.4 million more than the next highest trading asset class in terms of vol- ume, which was industrial (mul- tifamily was excluded from this comparison). Investors needed a new asset class to turn to that was going to produce higher returns and demonstrate a strong degree of safety. The writing was on the wall after multifamily investment cap rates reached an all-time low in fourth-quarter 2022, industrial investment product lacked sup- ply, and the general sentiment toward office investments was confirmed by the banks’ wariness to provide financing. Pair all of that with a 10-year low vacan- cy rate of suburban retail, and a large appetite for small-business lending, and it created the perfect storm. Signs point toward suburban retail continuing to outperform the other commercial asset classes for the next 18 to 24 months, but the strike point to purchase will be sooner rather than later – if it hasn’t already passed. Many investors have been on the sidelines wait- ing for “blood in the water” or distressed sales from the estimated $929 billion of CRE debt that is balloon- ing this year, per Mortgage Bankers Association. However, this “feeding frenzy” or “time to buy” does not seem likely to hap- pen in the way that many inves- tors expect. Dr. Peter Linneman advised against this strategy in his last sit-down with Willie Walker on the Walker Webcast and in his Linneman Letter. “There will be no grave dancing,” he said. This is because we all expect rate cuts this year, and if they happen to the degree that they are predicted, 100 to 150 basis points, then much of this debt will cover their loan con- ditions. Furthermore, the banks and owners are going to get cre- ative and figure out ways to make it cover with this rate decrease. The other reason that this “grave dancing” won’t happen is because of the sheer number of other investors that are waiting for the same thing. The distressed sales that do hit the market are likely going to have competition, and any sophisticated seller will price this in, or the competition will drive the higher price. It is also possible that opportunities like this will be scooped up by private capital before they hit the market. Investors waiting for the “perfect storm” may be wise to take a look at the current oppor- tunities in front of them and con- sider striking before this pent-up competition shoots prices back up to where they were in 2021 and the first half of 2022. Trying to time the market rarely works out as hoped. Vacancy rates for suburban retail have continued to decline. The current vacancy rate is 4.2%, according to CoStar, a new 10-year low. There is a lack of quality retail space in Colorado and a strong consumer base for these tenants searching for space that is driving up rents. Most of the tenants look- ing for space are still entertain- ment-based retailers. The worry of big-box stores such as Bed Bath & Beyond vacating shopping cen- ters has been mitigated by these entertainment retailers, such as gyms, indoor pickleball and golf Suburban retail continues to out perform other CRE assets Keith Lenz, Associate Advisor Pinnacle Real Estate Advisors Please see Lenz, Page 51