Denver Business Journal : Denver’s retail construction lags with available space dwindling

While metro Denver’s retail market is lagging behind the office and industrial markets — as is often the case in commercial real estate anywhere — vacancy rates have still dropped for the past year and retailers are leasing more space than they’re vacating, according to the first quarter MarketView report by CBRE Group Inc.

The average direct vacancy rate stood at 6.6 percent, Los Angeles-based CBRE Group said, while the average retail lease rate climbed to $15.48, up both from Q4 2013 and year over year.

“Driving tenant demand above supply levels again in Q1 2014 were fitness users, niche grocery stores and discount retailers,” according to the report.

The report keyed in on the elevated amount of investment activity in the retail market, with $72.3 million worth of sales in Q1, up 54 percent year over year.

“This gain is attributable to confidence in the market fundamentals and favorable lending conditions,” the report states.

Despite there being only 303,000 square feet under construction — compared to  2.1 million of new office construction and 3.1 million of new industrial space construction...

Read more: Denver Business Journal : Denver’s retail construction lags with available space dwindling
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Crosbie Real Estate Group I Recent Deals

Crosbie Real Estate Group I Recent Deals

Some of our recent retail deals and tenant openings throughout the state of Colorado.

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The Denver Post I Natural Grocers store opens quietly in Capitol Hill

 

ImageNo one waited for hours to check out, and it didn’t appear anyone camped overnight, but people in Capitol Hill were still pretty excited about a new grocer in the neighborhood.

 

Natural Grocers by Vitamin Cottage celebrated its grand opening Tuesday in a reclaimed building at East Colfax Avenue and Washington Street.

 

The doors opened without the fanfare of Trader Joe’s, which was flooded by shoppers last week when the ribbon was cut on a location a few miles to the east at East Eighth Avenue and Colorado Boulevard.

 

“For years, you had to get on your bike and ride to 15th and Platte or take all your money to Whole Foods,” shopper Greg DeGroat said. “I’m really grateful as a Cap Hill resident and someone who wants to eat healthy.”

 

Store manager Barb Zalewski said the company didn’t put much effort into announcing the new store, mailing only one set of postcards to the neighborhood. Typically, the Lakewood-based retailer hits its new neighborhoods with six or seven mailings, she said.

 

The new store, in an old Office Depot that has been vacant since 2012, is one of a few in the chain that has a test kitchen for cooking demonstrations, Zalewski said.

 

“People are excited. People are saying, ‘Thank you for being in the neighborhood,’ ” Zalewski said.

 

DeGroat said he found out about the Capitol Hill store when he passed by during the soft opening Saturday. It was his birthday, and he called the store the perfect gift.

 

Read more: Natural Grocers store opens quietly in Capitol Hill – The Denver Post 
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Retail Industry I U.S. Retailers Dominate World’s Largest Retail Chain Rankings – 2014 Reports

Retail Industry I U.S. Retailers Dominate World’s Largest Retail Chain Rankings – 2014 Reports Biggest Changes in Years for Costco, Amazon, Apple, Dell, JC Penny

ImageThe world’s largest retail chain, Wal-Mart, is still the world’s largest retail chain. We didn’t need an annual report to tell us that. However, the annual revenue and ranking report of the largest global retail chains that generally contains very few year-over-year changes managed to deliver quite a few surprises in 2014, particularly for the U.S. retail industry in general, and for the largest U.S. retail chains like Costco, Amazon, Apple, Nike, and JCPenney in particular.

By the time the annual Global Powers of Retailing research is released each year, it’s mostly filled with yesterday’s non-news, especially for U.S. retail industry watchers who are obsessed with measuring individual and industry-wide retail revenue and performance all year long. We’re grateful for your compilation work each year, Deloitte and STORES, but your world’s largest retail rankings don’t change much and therefore aren’t usually all that exciting. Until 2014.

Huge movements in U.S. retail chain revenue rankings dominated the 2014 world’s largest retailers report, just as U.S. retail companies continue to dominate retailing on a global level. Costco jumped up three revenue ranking positions to pass Kroger and push Germany’s largest retailers Metro AG out of the top five of global retailers. That’s the biggest shakeup that’s happened in the global retail industry in years.

Amazon also made a big jump into the Top 20, landing at ranking position #16 when compared to all retailing operations in the world. Considering that Amazon has only been in business for 18 years and has never sold a single product out of a physical retail store, that’s a big deal not just for Amazon, but also for for global retailing.

Apple retail also made its mark on the global retail industry when it jumped up 25 positions in the global revenue rankings to land squarely in the Top 50 of retail chains in the world, when measured by annual revenue. Apple accomplished that in less than 12 years with less than 500 retail stores worldwide, proving once again that you don’t have to be the biggest in order to be the best.

Having said that, Dollar General has been topping the U.S. retail industry store openings list for the past few years, which is the reason behind its rise from ranking position #67 to ranking position #56 on the global retail scene. Notably, Dollar General’s expansion has been in the U.S. domestic market, which most other retail chains have all but abandoned in their expansion plans. Also notably, Dollar General is now selling more than legacy American retailer, JCPenney.

Read more: Retail Industry I U.S. Retailers Dominate World’s Largest Retail Chain Rankings
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Fast Casual I Restaurant Trend Mashup: What to expect in 2014

Predicting the year’s coming trends in any industry is a challenge but is even more daunting when it comes to forecasting what’s to come for restaurants, which make up the nation’s second-largest industry.

To give you a little insight on what to expect in 2014, FastCasual.com has gathered predictions from some of the industry’s market research firms, including Mintel, NPD, Food IQ and Technomic.

Mintel

Julia Gallo-Torres, the company’s category manager of U.S. foodservice, believes restaurants across the board will be affected by these five trends.

1. Fast casual pulling ahead: The impressive growth of the fast casual segment demonstrates consumers, who are still focused on price, are willing to pay more for foods they consider to be of better quality or healthier. To meet that demand, concepts focusing on customization, speed of service and convenience, have recently popped up, including high-quality burger chains, health-focused concepts and top-your-own pizza restaurants. Gallo-Torres expects more to emerge this year

2. Premium proves practical: Full-service concepts are mimicking fast casual restaurants and will continue to test speedier service models. This is important especially during the lunch rush, when consumers don’t have the time to wait. Other tactics include launching healthier, more flavorful menu items and employing technology to speed up the dining experience, Gallo-Torres said.

3. Open-book business practices: Consumers are questioning the origin of their foods and are demanding transparency in ingredient sourcing and in general business practices, including the treatment of animals and employees, Gallo-Torres said. Consumers are interested in patronizing restaurants and buying brands that reflect their own values. Concepts that understand this and offer more information about their green practices or the causes they support stand to reap the rewards of increased loyalty.

4. Marketing to different demos: Operators have been obsessed with Millennials, but three other demographics will move into the spotlight this year: They include: Hispanics, women and baby-boomers.

Hispanics’ spending power is expected to reach nearly $1.7 trillion by 2017, meaning serving this rapidly expanding community will be key to growth.
Women visit restaurants less than men, probably due to their being more health- and budget-conscious, Gallo-Torres said. This indicates restaurants need to do more in terms of pricing, atmosphere and menu to gain momentum with this group.
Baby Boomers enjoy dining out and have more disposable income than other demographics, but few marketing campaigns specifically target them.

5. Technology revolution: Restaurants are increasingly using technology to cut service times and to offer loyalty programs, promotions and discounts electronically. This trend will continue, Gallo-Torres said, with things like in-store tabletop tablets and digital menu boards offering nutritional info becoming more common. Brands are also redesigning their websites and embracing mobile sites, so consumers can have access to restaurant info on their phones.

Food IQ

When it comes to profiling flavors, Food IQ is full of predictions. Daniel Campbell, the company’s Research and Development assistant, expects restaurants to embrace sour recipes, along with locally grown produce, Heirloom beans and Brazilian and spicy Asian flavors.

Read more: Fast Casual I Restaurant Trend Mashup: What to expect in 2014
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Happy Holidays from Crosbie Real Estate Group!

Happy Holidays from Crosbie Real Estate Group!

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Denver Post I Denver’s Cherry Creek North realizing development boom

Cherry Creek North is seeing its biggest construction boom in decades, fueled by developers offering a live-work-play experience in the tony neighborhood.

The “play” part of the equation Cherry Creek has already mastered. Restaurants and boutiques proliferate. But the new development will round out the portfolio with an infusion of residences and office space.

Five major projects are under construction or in advanced planning stages for the area just north and east of the Cherry Creek shopping center. More are in the pipeline.

The first round of development will produce 70 condos, 444 apartment units, 13 floors of office space and dozens of ground-floor retailers.

“Cherry Creek appears to be hitting its full potential,” said real estate broker Stuart Zall of Denver-based Zall Co. “It’s already a premier shopping district. Now, the office and residential markets are developing. Clearly, it’s a desirable location.”

Given that desirability, the boom perhaps should have occurred years ago. But a combination of the Great Recession and tight commercial lending prevented the new projects from kicking off until this year.

Ironically, developers also were slowed by the very concept that has defined Cherry Creek North — an assemblage of small and largely independent retailers, many of whom own the real estate on which their stores sit.

The development companies were challenged by the prospect of negotiating to buy multiple small parcels of land that collectively became project sites.

Read more: Denver Post I Denver’s Cherry Creek North realizing development boom
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Inside Real Estate News I Mayfair Center renovation on tap

Our listing at Mayfair Center featured in Inside Real Estate News, Colorado’s Real Estate News Source!

Highlights:

  • Key retail center in Mayfair being redeveloped
  • Chair Five Equities owns Mayfair Center at 14th and Krameria
  • One new tenant already is on board

ImageA Denver developer plans to invest $2.25 million to restore a key retail center in the heart of Mayfair to its former glory.

Chair Five Equities LLC plans to start physical improvement of the Mayfair Center at East 14th Avenue and Krameria Street in December.

In the past, the center’s tenants have included the Bagel Deli, Baskin Robbins, the Hair Bender and Milt’s Fine Meats.

In recent years, however, the 11,700 square-foot center had been ignored and fallen into disrepair. Chair Five Equities purchased the property in late 2012.

“There are many reasons why this purchase and redevelopment make sense,” said Jamie Harris, managing member of Chair Five Equities. “The more we looked at the community and the property, the more our improvement plans grew.”

He said it quickly became apparent that it would take a larger investment that was initially planned and it was needed “sooner rather than later,” to “benefit the neighborhood and add to the property’s success.”

Mayfair is becoming increasingly trendy and a derelict building won’t provide the draw for tenants that want to be in the neighborhood, he said. Mayfair is one of the hottest housing markets in Denver at this time, according to CoHomefinder.com. The median for sale price of a home is $350,000 and with some homes priced just under $1 million.

“The Mayfair neighborhood is on the rise and we can’t attract the kind of tenants the neighborhood wants with the property in its current condition,” Harris said. “The bones of the center are in good shape, it’s just tired and needs a lot of help.”

The center is being designed as a place where people can come to eat, shop, and have a conversation with their neighbors.

The center is being designed as a place where people can come to eat, shop, and have a conversation with their neighbors.

Some of the improvements include:

  • he installation of a large pedestrian sidewalk with patios that will replace the dated smaller walkways in front of the shops;
  • Benches and bike racks will be integrated into the design to enhance the shopping experience;
  • A new two-foot high illuminated design band will follow the 1960’s era roofline;
  • All of the individual tenant signage will be located on a new sign framework that will provide greater visibility for all of the businesses.
  • The entire parking lot will be replaced and re-striped in December.

The project will create an estimated 40 jobs upon completion.

“This is a catalyst project for the Mayfair Town Center area,” said Hilarie Portell, executive director of the Fax Partnership. “It’s aligned with the community vision, eliminating blight and strengthening connections with surrounding neighborhoods. We look forward to organizing events there and attracting more new investment.”

The property is being leased by Jeff Germain of the Crosby Real Estate Group. The center can accommodate tenants from 605 square feet to 1,816 square feet.

Germain already has landed the first tenant, the Garlic Knot.

Read more: Inside Real Estate News I Mayfair Center renovation on tap
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The Denver Post I Glendale’s big-name restaurant cluster adds to urban renaissance

Read about our CitySet listing in Glendale featured in The Denver Post!

Image

Jax Fish House ribbon cutting and celebration of their new location at CitySet. June, 2013

The metro Denver enclave of Glendale is known for many things — pro-business orientation, nightclubs and strip bars, endless traffic jams on Colorado Boulevard. But Glendale is undergoing a renaissance, and nowhere is it more apparent than in restaurants.

The city has never held a reputation as an innovative eating destination. Chili’s and Applebee’s draw patrons but not rave reviews. Yet now, diners have another choice beyond the better-known foodie destinations of LoDo and Cherry Creek.

Ground zero for the restaurant awakening is CitySet, a retail center tucked away behind the Hilton Garden Inn at Cherry Creek Drive South and South Colorado Boulevard.

In June, the popular Jax Fish House opened its fourth Colorado location at CitySet. By early next year, another high-profile operator, The Kitchen, will open its casual The Kitchen Next Door concept at CitySet.

Adding variety in menu offerings and price points are Udi’s, Big Smoke Burger, World of Beer, Cuba Cuba Sandwicheria and Native Foods Cafe.

Glendale officials see CitySet as an anchor for the proposed Riverwalk entertainment district that will run along a half-mile stretch of Cherry Creek waterfront. Glendale already has earned praise and international publicity for the nearby $22.5 million rugby complex at Infinity Park.

“What the city has done to revitalize its core is nothing short of amazing,” said Kimbal Musk, co-owner of The Kitchen. “That whole area is going to become a great destination.”

Musk said he had been looking for a good east-Denver location for two years, with much of the search focused on Cherry Creek North.

“But frankly, this was just a better setting,” he said.

Jax Fish House owner Dave Query said he and restaurant partner Jamie Fader had been looking throughout metro Denver for a new location when they became familiar with CitySet after meeting with developer Navin Dimond of Arapahoe County-based Stonebridge Cos.

“The only thing I knew about Glendale and this location was that it’s right down the street from (strip club) Shotgun Willie’s,” Query said.

But in meeting with Glendale officials to discuss and plan the new restaurant, Query said he became enamored of the city’s enthusiasm for bringing in new businesses.

“At the liquor-license hearing, they give you a foot rub and hot muffins when you walk out,” Query joked.

Query initially called the new restaurant Jax Cherry Creek, believing that name would add cachet and a geographic cue, but it’s now Jax Glendale.

“We weren’t giving Glendale a fair shake,” he said. “So we bit the bullet and jumped in with the Glendale name.”

Restaurant analyst David Kincheloe of Golden-based National Restaurant Consultants said CitySet provides a critical mass of restaurants to help draw patrons to a location without high visibility. He noted that most of the new restaurants can’t be seen from Colorado Boulevard.

“Most people would consider that to be Class B real estate,” he said. “But by having a restaurant cluster, you create a destination. People come, and then they decide which restaurant they’re going to.”

Read more: The Denver Post I Glendale’s big-name restaurant cluster adds to urban renaissance
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Crosbie Real Estate Group I Recent Deals

Crosbie Real Estate Group I Recent Deals

Some of our recent retail deals and tenant openings throughout the state of Colorado.

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