We have compiled and analyzed the most recent retail market data from the last quarter. The table below reports some of the key market indicators from 10 submarkets across the greater Denver retail market, during Q2 2019.
The feature article for August 2019 more fully describes the historical, current, and projected status of the Denver retail market. We will only highlight a few of the more outstanding trends in the local submarkets here.
The feature article this month more fully describes the historical, current, and projected status of the Denver retail market. We will only highlight a few of the more outstanding trends in the local submarkets here.
Retail rents have increased by 5% annually over the past five years. The two submarkets that had experience negative year-over-year rent growth as reported last quarter, Cherry Creek and Downtown, have reversed that short-lived event. This is pretty remarkable considering that they are two of the highest performing submarkets in the nation in terms of rent growth. In fact, rent growth is up across most of the submarkets this quarter, ranging from 1.7% to 3.0%. The forecast is for rental rates to continue to realize moderate growth over the next few years, albeit at a slower pace than has been seen since the nadir of 2012, but positive nonetheless.
Vacancy peaked at 9% during the great recession and now remain at historically low-levels, at 4.4% for the overall market. The vacancy rate throughout the metro area has remained below 5% since mid-2015. It is quite impressive that the highest submarket vacancy, in the Northeast corridor, is only at 5.4%. The downtown submarket remains incredibly tight at 1.7%. As with rent growth, the forecast is to now enter into a leveling-off period, with vacancy rates only trending only slightly up or down, depending on the type of retail (mall, neighborhood center, strip center, etc.).
Brian Lantzy is the Vice President of Operations at Wheelhouse Commercial in Denver, Colorado. For more information about how Wheelhouse Commercial can help manage your properties, please call 303.518.7406 or email firstname.lastname@example.org.