Colorado-Real-Estate-Journal_461157

Page 8 — Retail Properties Quarterly — May 2025 www.crej.com MARKET UPDATE 6,200 SF currently available on 1st . - space can be divided into appx. 3,100 sf units each 2 reception areas & conf. rooms, 2 entrances, 12 of ces, 1,000 sf training room Property includes backup generator, ber optics Ample parking, easy access from Parker Rd., Iliff Ave., Havana St. & I-225 Louis Lee 303-454-5416 - License #EA000328361 SE Denver Of ce Available For Lease 2015 S. Dayton St., Denver, CO Aggressive New Lease Rate for full building lease at 1810 Blake St., Denver, CO 9,375 RSF on 3 oors Fully restored historic LoDo building Freight elevator serving garden level & rst oor First oor available immediately & full building available 9/1/2025 (possibly sooner) High ceilings, exposed brick, hardwood oors, Convenient access to light rail, Milk Market, Union Station, Coors Field, Ball Arena, DCPA & other attractions Doug Antonoff, Antonoff & Co., 303-454-5417 - License #EA000970565 1528 Wazee Street Denver, CO 80202 n O: 303.623.0200 n F: 303.454.5400 n www.antonoff.com 1,766- 6,601 SF available 3 prime endcaps Easy access & visibility to I-225, 6th Ave. & Sable Blvd. Two monument signs - one on 6th Ave., one on Sable Blvd. Ample parking Charles Nusbaum 303-454-5420 - License #EA40028301 6th & Sable Plaza 6th & Sable Blvd., Aurora, CO Warehouse With Yard For Sale/Lease 5501 Pearl St., Denver, CO 20,920 SF of ce/warehouse set on 1.33 acres Located in Adams County Enterprise Zone Located near the highly sought-after Globeville redeveloping area I-1 Zoning, 3 overhead cranes Minutes to easy access to I-70, I-25 and I-76 Louis Lee 303-454-5416 - License #EA000328361 Chris Katsaros 303-454-5413 - License #FA100073099 Gateway Point Plaza Space For Lease 3751 N. Tower Rd., Aurora, CO Rare 1,935 SF available immediately facing Tower Rd. Space can be delivered in vanilla shell condition 10 yr. Term preferred 2-sided pylon sign available on Tower Rd. Space has access to communal grease trap Explosive trade growth driven by 24/7 traf c of DIA Jeffrey Hirschfeld Ed.D. 303-454-5425 - License #ER001314346 East Iliff Plaza Units Available For Lease 16728 - 16880 E. Iliff Ave., Aurora, CO In-line retail and end cap available 1,600 - 3,800 SF available High traf c location Monument signage, ample parking Landlord has ability to add tenant nish allowance Louis Lee 303-454-5416 - License #EA000328361 S ince you’re reading this pub- lication, you must already know that the retail sector has been on fire recently, perhaps calling to mind Will Ferrell’s iconic line from “Zoolan- der”: “so hot right now.” But just in case, here’s a quick review of key factors that have positively affected retail markets, both locally and nationally: • Historically low new develop- ment in the past five-plus years; • Demand for space outpacing supply, resulting in vacancy levels near all-time lows (sub-5% for near- ly 2 ½ years, per CoStar); • Tight conditions supporting robust leasing and backfilling, con- tributing to increased rental rates; and • Relative stability of cap rates and valuations, compared to sub- stantial volatility of interest rates and capital markets, attracting more investors and allowing for positive leverage in many cases. n A hearty appetite. Lenders cer- tainly have taken notice of these strong fundamentals, offering some of the most aggressive terms we’ve ever seen for best-in-class retail assets. For example, our firm recently signed up a lower-leverage, credit grocery-anchored, 20-year- old property with a 10-year term, 30-year amortization, five years of interest-only, and a 125 basis points spread resulting in a sub-5.5% inter- est rate. The life company lender offered prepayment flexibility, and it locked the rate up-front, allowing the borrower to eliminate volatility risk during the due diligence and closing period. Many lenders have also expand- ed their appetites to a broader array of retail property types – including malls – in part due to steep competi- tion and/or port- folio saturation within the multi- family and indus- trial sectors. This eagerness toward retail applies to nearly every lender type, summarized as follows: • Life companies are offering his- torically low spreads and increased availability of interest only, flexible prepay, shorter terms and longer amortizations, among other fea- tures; • CMBS and securitized products are experiencing a major resur- gence, as evidenced by a 170% increase in issuance during 2024 vs. 2023, and a 110% increase during the first quarter this year vs. first- quarter 2024 (per Goldman Sachs); • Banks and credit unions are becoming more active, slowly but surely, with increased liquidity and lower costs of capital contributing to more lending and better terms; • Debt funds and alternative capi- tal sources are plentiful, benefit- ting from increased bank liquidity and lower short-term rates tied to secured overnight financing rate, plus a crowded multifamily space, creating competitive terms for value-add or transitional business plans. n What’s the catch? Well, it’s more like who, not what. Did you guess President Donald Trump? There is definitely a “catch” that could derail this retail freight train, which is Trump’s trade war. It is undoubtedly the biggest risk to the industry right now, as retail properties could expe- rience a fairly direct impact from tariffs: decreased consumer spend- ing, increased occupancy costs, disrupted supply chains and flow of goods, to name a few. The uncertainty alone is already affecting consumer behavior and increasing volatility. In March, U.S. retail sales hit their highest level in 14 months, which was driven at least partially by consumer antici- pation of tariff-induced price hikes. April’s figures could look similar, marking the fifth straight monthly decline in the consumer confidence index, at its lowest level since May 2020. April was also one of the most volatile months for Treasury yields since March 2023, reflecting the market’s nervousness and a return to hypersensitivity around econom- ic data releases, driven again by the “wild card” tariff factor, especially with the Trump administration’s stop-and-start implementation. n A little gloom, not doom. Despite the aforementioned uncertainty and volatility, it’s important to zoom out and consider the macro perspective as well. As shown in the chart below, the benchmark 10-year U.S. Treasury yield has been much less volatile each year since 2022, overall, including this year with a high-to-low range of approximately 80 basis points, from 4% to 4.8% (rounded). That compares to the As tariffs loom, will lenders bring doom? Joe Solomos Originator, BWE Please see Solomos, Page 23