Marcus & Millichap have released their 3rd quarter Retail Research Market Overview of the Denver Metro Area. Below are some report highlights regarding Denver’s retail market:
- Denver’s retail market will continue to make significant strides in recovery, led by strong employment gains and expanding population
- Growth in the area’s high-tech sectors has led to the passing of the Colorado Advanced Industries Acceleration Act, designed to provide proof-of-concept grants for 7 high-tech industries
- A significant amount of capital investment continues to be brought into the region through the combination of a booming high-tech sector and state initiatives
- Local employers added 38,000 positions during the past year, expanding payrolls 3.1%
- Retail spending surged 8.6% in the last 12 months
- Vacancy continues to drop: lowest vacancy is in the Colorado Blvd/Cherry Creek submarket (2.9%); highest vacancy is seen in the Northwest submarket
- Asking rents over the last year have rose 1.9% to $15.76 PSF
- Retailers have been relocating to space near Union Station and the Denver Tech Center. As a result, Aurora and the Northwest submarkets have the lowest asking rents for available space.
- Sales of restaurants and fast-food properties increased by 16%, while drugstore sales slipped due to limited properties coming to the market
To view the full report, click here.