First Quarter 2007 Retail Market Review Part 1

The first quarter of 2007 was fairly typical for a first quarter. After the holiday season, it's typical to see a fairly slow start during January and February. While the average asking lease rate increased yet again from $13.30 per square foot at the end of 2006 to $13.44, and increase of just over 1%. Vacancy rates rose from 6.4% at the end of 2006 to 7.3% at the end of 1st quarter 2007. While this jump may seem drastic, this a fairly common trend in the first quarter of the year and by the end of the second quarter 2007 that number should be closer to the 6.4% at the end of '06. It should also be noted that the 6.4% of 2006 vacancy rate was lowest vacancy rate of this decade.*

The retail leasing market has slowed some compared to the explosion of years past but is still growing at a steady rate. There are a handful of new, large acreage retail projects that are still in the works across the city, including two separate projects that will each have Costco as an anchor. The retail project and redevelopment of North Nevada will include Costco and Gander Mountain (both new to the market), Lowe's and a handful of restaurants that are said to be new to the market. The other Costco site is in the 1st and Main development at Powers Boulevard and N. Carefree. Numerous developers are still chasing land deals in the northeast part of town along with the southern portion, just east of Fort Carson in the Fountain Valley. A new King Soopers center and Super Target center in Briargate Crossings are scheduled to open late summer of this year.

* The statistics and data listed are used with permission from Paul Turner, publisher of the TCR 1st Quarter Market report.