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...