Top real estate broker Travis Ackerman sheds new light on the burgeoning retail sector real estate market in North Colorado.
As NorthColorado, is ranked as the country’s second-best place to live by the U.S. News & World Report during the second quarter of 2019, rental rates in the area continue to strengthen, particularly within the city’s retail market. That’s according to Travis Ackerman, a director for Cushman & Wakefield Commercial Real Estate based in Fort Collins, as he provides a closer look at the North Colorado retail space market.
“North Colorado, enjoys one of the strongest economies in the nation,” suggests Ackerman. Good news, he says, for the city’s retail space market.
“Considering the billions of dollars invested in major active and pending infrastructure projects, a booming construction pipeline, and investors continuing to trade properties at a rapid pace, the future remains bright for North Colorado economy,” says Ackerman. Colorado’s capital, he believes, will continue to be the Rocky Mountain region’s premier business and economic hub.
Looking at vacancy within retail real estate products during the second quarter of this year, Ackerman suggests that the numbers remain flat. “The quarter closed at 6.5 percent vacancy on an overall basis, representing a 10 basis point increase at the start of the year,” he explains, “but a 20 basis point decrease over the same figure recorded during the second quarter of last year.”
An overall vacancy has not surpassed 8 percent since 2015, according to Ackerman, and rental rates have approached record highs as a result. Overall retail product rental rates in Northern Colorado, he says, came to $17.41 per square foot on a triple net basis at the close of the second quarter of 2019. “That’s a 1.4 percent increase quarter-over-quarter,” adds the expert, “and a 2.5 percent increase year-on-year.”
The Colorado Boulevard and Cherry Creek submarket continues to demand the highest rental rates across the metro area. “High rental rates here are largely the result of high foot traffic and Cherry Creek’s fine retailers,” Ackerman explains, “catering to the most affluent individuals in the area.”
Rental rates here have, too, however, been further driven up by consistently low vacancy. Vacancy in this area, in particular, has barely eclipsed 5 percent since 2015, according to Ackerman, around 3 percent lower than anywhere else in the city. “Current vacancy in Cherry Creek sits at 3.9 percent on an overall basis,” he adds.
Ackerman expects vacancy in the Colorado Boulevard and Cherry Creek submarket to remain low as demand continues to outpace supply. “Accordingly,” he adds, wrapping up, “rental rates can be expected to rise further moving forward.”
Travis Ackerman is a director for Cushman & Wakefield Commercial Real Estate specializing in the sale and lease of land and industrial, retail, and office space in North Colorado. Since 2007, Colorado State University graduate Ackerman has been involved in a total of more than 500 transactions worth in excess of $350 million. Known in the North Colorado real estate community for his integrity and work ethic, realtor and Colorado native Travis Ackerman is now recognized as one of the top commercial brokers in the region.