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Spring is generally regarded as the most popular time of year to buy a house, but with that comes a bit of a buyer’s problem: competition.
Home prices were up and inventory was down in May from last year, according to a monthly analysis from Realtor.com.
Meanwhile, property listings turned over at a much higher rate, contributing to the high-pressure situation that is finding and purchasing the right home.
Many of the places with the hottest markets in May will come as no surprise to consumers — most are in California. Realtor.com determines “hot” markets based on two factors: the median inventory age in the market and the number of views per listing on Realtor.com, and the 20 hottest markets rank in the top 50 in both metrics.
Nationwide, a home is on the market for a median 66 days, and in the hottest markets, inventory turns over eight to 45 days more quickly than in the rest of the country.
Based on data from the first three weeks of May, Realtor.com determined the 20 metropolitan statistical areas (MSAs, as determined by the U.S. Census Bureau) with the hottest markets this spring.
20. Stockton/Lodi, California
April 2015 rank: 38
19. Columbus, Ohio
April 2015 rank: 22
18. Manchester/Nashua, New Hampshire
April 2015 rank: 31
17. Oxnard/Thousand Oaks/Ventura, California
April 2015 rank: 13
16. Austin/Round Rock, Texas
April 2015 rank: 14
15. Los Angeles/Long Beach/Anaheim, California
April 2015 rank: 15
14. Fargo, North Dakota/Minnesota
April 2015 rank: 12
13. Boulder, Colorado
April 2015 rank: 17
12. Sacramento/Roseville/Arden-Arcade, California
April 2015 rank: 21
11. San Diego/Carlsbad, California
April 2015 rank: 10
10. Detroit/Warren/Dearborn, Michigan
April 2015 rank: 11
9. Ann Arbor, Michigan
April 2015 rank: 9
8. Santa Rosa, California
April 2015 rank: 7
7. Santa Cruz/Watsonville, California
April 2015 rank: 8
6. Boston/Cambridge/Newton, Massachusetts
April 2015 rank: 6
5. Vallejo/Fairfield, California
April 2015 rank: 5
4. Dallas/Fort Worth/Arlington, Texas
April 2015 rank: 4
3. San Jose/Sunnyvale/Santa Clara, California
April 2015 rank: 3
2. San Francisco/Oakland/Hayward, California
April 2015 rank: 2
1. Denver/Aurora/Lakewood, Colorado
April 2015 rank: 1
These markets have seen tremendous demand and turnover for a variety of reasons. In many of the California locales, economic growth, combined with limited supply and high demand, make homebuying a bit of a mad dash. For places like Detroit and Ann Arbor, the hot market is driven mostly by affordability, in conjunction with economic recovery.
No matter where you’re looking for a home, it’s good to know what you’ll face in terms of competition, so you can better prepare yourself to make an offer when you find a desirable property. Before any of that, it’s crucial you work to improve your credit to the best of your ability and make sure it’s in good shape before house-hunting or applying for a mortgage. The better your credit, the more options you’re likely to have, even in a competitive market. You can check your credit scores for free on Credit.com.
Trammell Crow Residential will soon start building an eight-story apartment tower at 3300 E. First Ave. in Cherry Creek, adding 164 units to the market, and associated redevelopment will add retail space to the area.
Trammell Crow plans to break ground this month, with completion expected in mid-2017.
The apartment complex, to be called Alexan Cherry Creek, will be located at East First Avenue and Cook Street. The site was formerly home to a one-story parking garage for an adjacent office building, which will get a redeveloped ground floor.
“This was an extremely unique opportunity in the Cherry Creek submarket that came with several layers of deal complexity, including replacing a parking requirement for an existing office building and a re-zone,” said Chris Cowan, lead broker with ARA Colorado’s Land Services Team, which represented the seller, Ogilvie Properties Inc.
“In the end, Ogilvie Properties and TCR were able to see the bigger vision and success of a mixed-used development and able to overcome all obstacles. This will be an irreplaceable asset for TCR,” Cowan said.
A parking structure will be included in the development that will cater to office and apartment users, as well as patrons of retailers that will be added by Ogilvie to the ground floor of the existing office building.
For more information about the retail portion of this property, click here: http://www.creginc.com/pdf/Denver_3300E1stAve.pdf
Check out a few of our favorite photos from our ICSC Come As You Are Colorado Party, hosted by us, Crosbie Real Estate Group, and Land Title Guarantee Company!
To see all of the pictures, click here!
U.S. chain retailers have upped their store opening plans ever-so-slightly in April, confirming a positive outlook for the retail real estate sector going forward, according to the National Retailer Demand Monthly report from RBC Capital Markets.
RBC researchers estimate that the chains in their database have increased the number of stores slated to open over the next year by 2.5 percent since January, to 41,918 new locations. The same retailers also increased the number of stores they plan to open over the next two years by 2.8 percent, to 78,647 locations. Restaurant operators, discount department store chains, children’s apparel retailers and gift sellers accounted for a significant portion of additional planned openings.
RBC REIT analyst Rich Moore also noted that retailers continue to expand their workforce, indicating that net store openings are likely to be positive.
“The strength of the store opening picture continues to push new shopping center development, which is at a post-recession high,” he wrote. “In all, the picture remains a healthy one for retail landlords, and we look for solid quarterly results in first quarter 2015.”
The top few retailers that plan to grow the most as a percentage of their existing portfolio are made up of restaurant chains and convenience stores, including Penn Station—East Coast Subs and Five Guys Burgers and Fries. At the same time, discretionary retailers Bed, Bath & Beyond, Urban Outfitters, Crazy 8 and Francisca’s Collections also found their way on the top 30 list in April.
Meanwhile, Dollar General (1,300), Family Dollar (1,000), Sephora (100) and Dollar Tree (600) were among the top 30 retailers planning to open the greatest total number of stores over the next two years.
Read more: National Real Estate Investor I U.S. Chains Continue to Up Store Opening Plans
Re-posted by: Crosbie Real Estate Group
Colorado’s retail real estate picks up; office and industrial steady, CBRE report finds
is planning new shop space at 104th & Colorado, I-25 & 136th Ave, and 128th & Quebec
to open 135 to 150 stores in the next three years
Companies revolutionizing retail in 2015 (including our client )
1,500-acre mixed-use development proposed in Parker
Food helps drive strong Q2 for ; 1,650 net new stores planned
More e-tailers to open brick-and-mortar stores in 2015 (via )
Survey: Our client is the nation’s favorite home improvement chain
celebrates 60 years with new Wheat Ridge store
, hot global fashion retailer, will make its Colorado debut
Metro Denver again sees fastest-growing home prices of big U.S. cities
We are looking forward to seeing you at the Come As You Are Colorado Party at ICSC Las Vegas this year, hosted by Crosbie Real Estate Group and Land Title Guarantee Company!
Retail space in metro Denver lagged behind its office and industrial counterparts in terms of growth in the last parts of 2014, but the first quarter of 2015 brought a drop in vacancy rate and a corresponding increase in lease rates.
On average in metro Denver, retail vacancy rates dropped to 6.2 percent in the quarter, the lowest recorded figure since 2006, and the lease rate increased to $16.73 per square foot, triple-net, the highest rate recorded rate since 2009, according to the latest data from CBRE Group Inc.
Triple-net leases require the tenant to pay all operating costs such as taxes and utilities, as opposed to full-service leases, which require the building’s owner to pay these costs.
Improvements were led by Class A shopping centers, grocery stores and restaurants, said Jon Weisiger, senior vice president at CBRE. Continued demand in the housing market, particularly in the suburbs, also pushed the growth of retail in the first quarter, he said.
Market-wide, metro Denver’s retail segment experienced 234,355 square feet of positive absorption in the first quarter, a substantial improvement from 720 square feet of positive absorption in the fourth quarter of 2014.
Absorption rate refers to the amount of space purchased or leased in a given segment of the market.
Only two submarkets experienced negative absorption, with Aurora and west Denver giving back 39,127 square feet and 7,906 square feet, respectively.
The negative absorption in west Denver is fairly nominal, Weisiger said, and Aurora is heavy in Class C retail space and has recovered from the recession more slowly than some other parts of the metro area.
The remainder of 2015 should see continued increases in lease rates and decreasing vacancy, though the merger between Office Max and Office Depot could result in some big-box space being vacated, but it’s unclear how much space that might be.
Retail construction stayed strong in the first quarter, with 378,000 square feet of space developed, up from 75,000 square feet in the first quarter of 2014.
Investors also displayed more confidence in Denver retail, spending a total of $158.4 million on retail properties in the quarter, an increase of 54 percent from the same quarter last year.
Denver’s industrial market was also attractive for investors during the quarter, with 2.4 million square feet of industrial space trading hands, twice the 1.2 million square feet that sold in the first quarter of 2014. The 2015 number was given a substantial boost by Denver-based real estate investment trust DCT Industrial’s purchase of the Airport Distribution Center in Aurora, a 689,557-square-foot buy.
Purchasing activity was spurred in the quarter by record-low capitalization rates driven by continued low interest rates, said Todd Witty, first vice president at CBRE. High lease rates on industrial properties also helped drive purchaser demand.
The industrial market maintained the low vacancy rates that characterized the sector during 2014, with average vacancy in the metro area reaching 4.8 percent on the quarter. Lease rates on average reached $6.89 per square foot, triple-net, representing prices seen at historical market peaks, said Doug Viseur, first vice president at CBRE.
Tenants who last signed leases in 2010 when lease rates were depressed are now experiencing some sticker shock as they consider re-signing leases in 2015, he said, and often these companies had not budgeted for the rent increases, but they are well-capitalized enough to withstand the jump in rental rate, Witty said.
Rents are expected to continue on their upward trajectory, with potential double-digit increases across all types of industrial properties for the remainder of the year, in spite of the 2.7 million square feet of industrial space currently under construction in metro Denver. These elevated lease rates are expected to entice more developers to the industrial pipeline, according to CBRE’s report.
Lease rates hit a record high in the office market in the first quarter at $23.69 per square foot, for a full-service lease, an increase of 5.9 percent over the previous year. The vacancy rate metro-wide was 12.9 percent.
Concerns about the drops in oil prices and layoffs at oil and gas companies continue to plague conversations about the downtown Denver office market, which took a large hit in the oil bust of the 1980s. But the impact is not expected to be so great this time, said Tim Swan, executive vice president and managing director at CBRE.
Denver’s job market is much more diversified now, he said, and those companies that have vacated space are smaller, or were holding onto space they were expecting to grow into and have now changed those plans. About 200,000 square feet of sublease space came onto the market in the Central Business District in the first quarter, a “blip” in a market with a total of 26 million square feet, Swan said.
Swan points to recent announcements by companies like financial services provider Transamerica and international cable provider Liberty Global that they would move their offices downtown as a sign of the diversity of downtown Denver’s office market.