Crosbie Real Estate Group I Recent Commercial Real Estate Deals

Retail Openings & Property Sales throughout Colorado:

Valle VistaValle Vista Shopping Center in Westminster welcomes Koko Fit Club and Ziggi’s Coffee. Brokers: Jeff Germain & Rich Hobbs

Concentra Health Services will be opening at the Belcaro Center in Denver. Broker: Scott Steputis Image

ImageNew Supercuts locations will open at Westminster Crossing in Westminster and at E470 and Smoky Hill Road in Aurora. Broker: Rhonda Coy

ImageA new location for Firehouse Subs opens at 195 S. Union Street in Lakewood. Brokers: Jeff Germain & Eli Boymel 

ImageReunion Marketplace in Commerce City welcomes Les Schwab. Brokers: Scott Crosbie, Rich Otterstetter & Scott Steputis

ImageEinstein Bros Bagels opens new location at Meadows Parkway & Limelight Avenue in Castle Rock. Broker: Rich Hobbs

ImageCentennial Square in Centennial welcomes Corepower Yoga. Broker: Andy Buettner

ImageAdorn Salon has leased space at 277 Broadway in Denver. Broker: Ei Boymel 

ImageOrange Theory Fitness and Colorado E Smokes will open at the Cherry Knolls Shopping Center in Centennial. Broker: Rich Otterstetter 

ImageColorado Marketplace in Thornton welcomes  Pai Lum White Dragon Martial Arts. Brokers: Jeff Germain & Rich Otterstetter

ImageARC Thrift Stores will join Ken Caryl Village Shopping Center in Littleton. Brokers: Rich Otterstetter & Eli Boymel 


Tech Crunch I Brick and Mortar Wins

main streetMarc Andreessen and Reid Hoffman recently debated whethersoftware would eat traditional retail, leaving no brick-and-mortar presence behind. Both articles noted that e-commerce is currently only 5 percent of retail in the U.S., while the other 95 percent is brick and mortar.

While Andreessen holds firm that e-commerce will completely overshadow physical retail, the debate missed why some industries will never go completely online.

Some industries will have a hard time competing as more consumers embrace online shopping, but some industries will do just fine. I have constructed a simple formula that can show that the magnitude of offline local commerce is likely to be larger than e-commerce for a long time. These calculations could have predicted that Amazon was going to do very well in categories like books and iTunes in music, but the $300 billion clothing industry is going to stay mostly brick and mortar for the foreseeable future, as are many service-driven local businesses.

One quantitative way to gain an understanding of which local businesses will be eaten by software and which will live on is to understand the local coefficient. The local coefficient (L) attempts to define how “local” each category of product or service must be, normalized on a scale of 0 to 1. You could even pick a number from 0 to 1 for each category (e.g. 0.2 for books, 0.9 for restaurants, 0.6 for clothing, etc.) based on your own intuition of how “local” it must be, but I tried to make the assessment more granular by breaking it down into three parts.

Read More: Tech Crunch – Why Local Commerce Will Be Larger Than E-Commerce For The Next Decade, An Analysis
Re-posted by: Crosbie Real Estate Group

Wall Street Journal I Office Depot to Buy OfficeMax

Office Depot Inc. ODP -13.15% said Wednesday it agreed to buy OfficeMax Inc.OMX -4.08% in an all-stock deal that values the rival office-supplies retailer at roughly $1.19 billion, although the news came after an early misfire, with the deal being announced prematurely.

The companies called the transaction a “merger of equals” in a joint news release that followed what appeared to be an accidental release from Office Depot earlier Wednesday. Office Depot early Wednesday announced the deal in a news release on its website. However, about an hour later, that news release—which also included Office Depot’s earnings, about a week earlier than expected—was removed from the company’s website. The removal of the news release raised questions about whether the company intended to make the announcement, stirring confusion. An official announcement was made a short time later.

Read More: WSJ – Office Depot to Buy OfficeMax
Re-posted by: Crosbie Real Estate Group I Fannie Sees Hope in Housing; Good for CRE

WASHINGTON, DC-To the extent that single-family home trends are a bellwether for commercial real estate (and after the recent economic unpleasantness, who could argue?) Fannie Mae’s January 2013 National Housing Survey provides some good news for both sectors…

…In an interview with, Fannie director of economics Orawin Velz says that commercial real estate will gain “from the spillover.” The confidence that comes from seeing your home’s value hike gives consumers the spirit to spend, a direct impact on the retail sector in addition to housing.

“The other factor is the balance sheet,” she continues. “Rising home prices help captial decisions, lending and investment.” Getting to this point in the recovery took so long in the housing sector and, she says, “the commercial sector can only take a little longer.”

She predicts the second half will be a lot more active than the first, given the mixed messages coming from the economic front, mixed messages surrounding the fiscal front. With the Tax Relief Act Deadline looming larger, “There’s no sense of clarity in that area.”

Read More: – Fannie Sees Hope in Housing; Good for CRE
Re-posted by: Crosbie Real Estate Group

Bloomberg I Fast-Food Buildings Beating Bonds Spurs Deal Surge

Sales of single-tenant retail properties — buildings leased to fast-food joints, pharmacies and other store operators — have soared to a six-year high as investors seek real estate that performs better than bonds.

Acquisitions of companies that own single-tenant buildings also are rising as landlords seek a more diverse mix of renters and lower risk. Spirit Realty Capital Inc., for example, agreed last month to a merger with Cole Credit Property Trust II Inc. in a deal valued at a record $3.66 billion, according to data compiled by Bloomberg.

So-called triple-net-lease landlords rent to pharmacy chains including CVS Caremark Corp. and Walgreen Co. and such food outlets as Chick-fil-A and Red Robin Gourmet Burgers under multiyear agreements, with tenants paying property expenses. The leases often have rent increases built in over their lifespans, providing steady cash flow and protection against rising costs, much like investing in an inflation-adjusted bond.

“It’s very stable and very predictable,” Ryan Severino, senior economist at New York-based research firm Reis Inc., said in a telephone interview. “That’s what’s been drawing a lot of interest to it.”

Read more:
Re-posted by: Crosbie Real Estate Group

Fast Casual I Smashburger debuts restaurant makeover

Smashburger debuts restaurant makeover

To say Smashburger’s CEO, Dave Prokupek, is comfortable with change is an understatement. In fact, he may even thrive on it and believes changing things up is one reason his chain has thrived since it launched five years ago. The better-burger franchise unveiled its redesign — its third in five years  — when it opened its 200th unit last week in Denver, Colo.

“When we started Smashburger we were committed to staying modern and relevant at every turn, in our recipes and in our design aesthetics,” Prokupek said. “This new design is part of that commitment, with high-tech digital menu boards and localized art and storytelling graphics that we believe bring the Smashburger brand and experience alive for guests in the restaurants. We believe evolution is vital in the restaurant industry order to stay at the cutting edge of the industry and relevant and interesting to our guests.”

The new design will serve as a template for all future openings, said Prokupek, who has plans to open 60 to 70 units this year. The updated décor also features softer lighting, earthy materials and brighter colors that offer a more contemporary feel. Each restaurant, however, will remain a little different from the next, because the chain will continue in its tradition of developing a local burger that incorporates the favorite ingredients and taste profiles of each region.

Read More:
Re-posted by: Crosbie Real Estate Group