Colorado Springs Retail News

Woodmen Road the new Main Street?

2008-08-27T13:25:00.002-06:00

At one point, Woodmen Road was nothing more than a 2 lane road to take people out to Black Forest and Falcon. Now, Woodmen Road is one of, if not the, busiest East/West thoroughfares in Colorado Springs. With the recent opening of the new St. Francis Hospital campus, accompanied by the 3 year old retail center (including Wal-Mart and The Home Depot) and the Villa Sport gym on the opposite corners of Powers and Woodmen, this corridor is going to see sustained growth.

The following article from the Colorado Springs Gazette outlines the planned developments between Powers Blvd and Falcon along Woodmen Road.

Woodmen: Future Main Street?

NAI Highland Commercial Groups Transactions- through June

2008-07-11T15:21:00.002-06:00

NAI Highland Commercial Group has enjoyed a good start to 2008. At the end of June, HGC had closed of $32 million covering land, investment and user properties. These sales included 19 acres of ground sold along with 387,717 square feet of improved property.

HCG also completed over $15 million in lease transaction, which represented just under 400,000 square feet of property.

That freaking mouse

2008-07-11T15:07:00.002-06:00

Those familiar with El Paso county, specifically, northern El Paso county are well aware of the Preble's meadows jumping mouse aka a really expensive pain in the butt. The mouse has bounced between being an endangered animal to not and now back again. How does this relate to Real Estate? Well, this mouse cost developers millions of dollars every year as they are forced to operate around teh mouse's habitat.

This recent article from the Colorado Springs Gazette outlines the up and down battle between developers, the mouse and environmentalists.

Click link to view entire article

ICSC ReCon 2008

2008-05-23T13:29:00.002-06:00

I just got back from the annual ICSC ReCon (Also know as the shopping center convention) in LAs Vegas. It's funny when I tell people that I'm heading to Vegas for a convention, the typical response is "Oh, that should be fun" or "Don't party too much". As much as I would like for this to be a "fun" trip, it's pretty much all business. Sure, there are cocktail parties that clients throw, and a fair amount of rubbing elbows aka networking, but for the most part this convention is a grind. In past years I had noticed that I was sore each time I returned from Vegas. From my feet to my back, I had some aches. This year I decided to wear a pedometer to see how many miles I walked while at this event. Starting from the time we left the hotel Sunday afternoon for our first event until getting back to the hotel after the last dinner Tuesday night we walked alot. The final reading was 28.98 miles in 48 hours. Okay, so that's extraordinarily slow for a marathon but that's a lot of mileage in business attire. All the tread put on these tires aside, it was another sucessful event.

The overall tone of the convention was tempered compared to years past, but the attendance did not suffer as nearly 50,000 people attended. As with everything going on in the business world, there are plenty of retailers that are either slowing down with regrad to expansion, or simply putting things on hold for 2008/2009. Still, there are plenty of retailers that are chasing deals, just not with the veracity of years past.

See ya next year Vegas!

Recent transactions

2008-05-07T10:23:00.003-06:00

NAI Highland Commercial Group, LLC is pleased to announce the following recent transactions.

Jim and Jamie Spittler of NAI Highland Commercial Group recently completed a lease transaction with New Cingular Wireless, dba AT&T Mobility (Represented by John Gatto of Crestone Development) at 7158 North Academy Boulevard (Landlord- Rusinak and Rusinak LLC). The 3,100 square foot transaction will be the first of the new AT&T concept stores in Colorado Springs. These new locations are featuring more than just cell phones. This new concept will include the sales of high speed internet, satellite television and mobile phone service.

Jamie Spittler of NAI Highland Commercial Group, along with Chris Wiley of Colliers Bennett and Kahnweiler, represented Edward Jones in leasing 992 square feet at 2950 Professional Place, in the Kissing Camels Office Park. Russell Stroud and Mary Francis Cowan of Grubb and Ellis|Quantum Commercial Group represented the owner, Sullivan Communities Kissing Camels Office Park.

Jamie Spittler of NAI Highland Commercial Group, representing the owner L & W Properties, recently sold 217 East Fillmore. The nearly 4,400 square foot building was purchased by Simon Penner, who was represented by Sam Cameron of Cameron Butcher. The selling price was $333,000.

Featured Property May 5th-May 9th

2008-05-07T10:17:00.002-06:00

This weeks featured property is a recently remodeled downtown building at 209 East Colorado Avenue, perfect for either office or retail uses. This 6,000 square foot property was remodeled in 2005 and features all new mechanical systems, new roof and a 3,000 square foot basement/storage area. It's located across the street from the city parking garage and is in the heart of an area of revitalization in downtown Colorado Springs. Please click on the link below for additional information.

209 East Colorado Avenue

Featured Properties for the Week of April 21-25

2008-04-25T14:36:00.003-06:00

This week we are featuring two properties.

NAI Highland Commercial Group, LLC has two great sub lease opportunities in downtown Colorado Springs. Both of these office spaces are at well below market rates ($14.99 Gross per square foot for each space) and are situated in Class A office buildings in the heart of downtown. Each property offers a chance to test out the downtown market, prior to having to make a long term commitment.

24 S. Weber Street is one of the newest office buildings in downtown and sits prominently on the corner of Weber Street and Colorado Avenue. Space available is from 2,000 SF up to 4,000 SF. Additional information can be found at the link below.

24 South Weber Street

444 East Pikes Peak sub lease space offers high visibility first floor space. This floor plan is just under 7,000 SF, but could be split into a smaller space if needed. The building features an underground parking garage, workout room and the option of on building signage.

444 East Pikes Peak Avenue

First Quarter 2008 Retail Market Review

2008-04-25T14:17:00.003-06:00

The first quarter of 2008 was steady despite national reports of declined retail spending and consumer confidence. Vacancy rates in the retail sector remained unchanged from the 4th quarter of 2007, at 7.7 percent. While this is an increase over 2006 (6.4%), this vacancy rate has been right around 7.5-8.0% over the last 8 years. Averaged asking rates for these retail properties has increased just slightly over the close of 2007, rising $.07 to $14.03. The $14.03 averaged asking rent is an all time high in Colorado Springs, but rates have increased every year since 2001.

The slow down in the economy is being seen in greater effect with regard to retail buildings that have sold over the past year. 2006 saw record highs in square footage sold (2,396,152 square feet sold) along with price per square foot ($161 per square foot). In 2007 those numbers dropped drastically, selling less than half of the 2006 number, to 1,087,205 square feet sold and the average price per square foot dropped to $132 per square foot.

All that said, in today's market, it's cheaper in many instances for owner/users to buy their building rather than to lease. Low interest rates for commercial properties are readily available, and in most cases bare out to be less expensive when compared to leasing on a price per square foot basis.

The majority of the information used in this entry is courtesy of Paul Turner, of Turner Commercial Research. We are grateful to Paul for allowing us to use his data and information in the blog. For more information on the other commercial real estate sub markets, please contact me and I will get you a copy of the TCR quarterly overview. The overview is a snapshot look at all commercial real estate segments (office, industrial, retail and land). Please call Jamie at 719-577-0044 to obtain your copy.

Featured Listing Week of April 7-11

2008-04-11T16:01:00.002-06:00

NAI Highland Commercial Group, LLC is pleased to present this listing. The property featured this week is approximately 7 acres of prime retail ground at North Nevada Avenue and I-25 just north of a new Costco and Lowes Power Center. UCCS is also planning an expansion on the East side of Nevada Avenue for their R&D campus as well as a 5,000-6,000 seat arena. This is a great infill/shadow development opportunity for smaller retail users, fast food and full service restaurants.

Additional information is available through the link below.

North Nevada Ground

Olympic Training Center to Remain In Colorado Springs

2008-04-10T16:29:00.002-06:00

The Springs recently made national headlines by retaining the Olympic Training Center and expanding the current campus located at Union and Platte. The OTC having a downtown presence will add to the landscape of the heart of the city. The City of Colorado Springs produced a $53 million incentive package to keep the OTC, which included office space and funds to improve and expand current facilities. To read more please click the link below.

Colorado Springs and Olympic Training Center remain partners

Featured Listing March 31st

2008-03-31T11:06:00.002-07:00

Each week we will be featuring one of our listings. This weeks featured listing is The Shops at Powers.

The Shops at Powers is an 8,100 SF building located at the intersection of Powers Boulevard and Galley Road. This beautiful copper roofed building is available immediately, with spaces available from 1,450 SF.

Please click the link for more in depth information

The Shops at Powers

The "R" word and the effects on Commercial Real Estate

2008-03-31T09:37:00.002-07:00

By now, most of us have heard the word recession being thrown around. Whether or not you believe we are in a full blown recession or headed there, the economy is depressed and to a certain extent already affected the commercial real estate market. Specific to retailers, we are seeing the national retailers reign in their expansions. Consumer confidence and consumer spending are weak right now which is the main cause of the retailers being much more deliberate in their site selections. That said, their are still deals to be made out their but it takes landlords realizing that this is not 2003/2004 and retailers are not opening new locations at the clip they once were. By now readers are probably fully aware of why the retailers are pulling back. Pretty simple equation: costs of fuel and other necessities like groceries have risen, in some cases dramatically, over the past few years and that has caused consumers to cut back on the non-essential consumer goods which equals less consumer spending. Both quick serve and full service sit down restaurants are seeing their sales decline and numerous national retailers are closing stores or closing all together. Okay, that's the bad stuff. What's the good news in this economy?

The good news is that there are plenty of deals to be had for savvy buyers and investors. Interest rates remain low and that is great news for those looking to buy properties. In many cases, it's actually cheaper to buy a property than it is to lease it. This bodes well for owner/users that are looking to purchase an asset rather than to continue leasing. Well healed and diligent investors are also able to take advantage of the low interest rates. While some business or property owners may be in trouble, this opens opportunities for others to come in and bail out some one that might be in trouble or that is having difficulty making their loan payments.

In closing, it's not all doom and gloom out there. Opportunities are out there, but it's a matter of timing, as is typically the case with most real estate transactions.

Colorado Springs Insulated from Recession?

2008-03-14T10:12:00.003-07:00

Local economist and UCCS professor Fred Crowley recently spoke about the recession and it affects on Colorado Springs. Below is an excerpt from the Colorado Springs Gazette with a link to the rest of the article.

Job growth insulates Springs from recession, economist says

By RICH LADEN

March 12, 2008 - 6:14PM

THE GAZETTE

The nation has already slid into a recession, but the Pikes Peak region has been spared so far because it has continued to add jobs, local economist Fred Crowley said Wednesday.

"Are we in a recession? I'm pretty sure we're in a recession right now," said Crowley, a senior economist with the Southern Colorado Economic Forum at the University of Colorado at Colorado Springs. He spoke to about 75 people during a Housing and Building Association of Colorado Springs breakfast meeting.

A growing list of national economic indicators prompted Crowley to ratchet up his recession talk from two months ago, when he told the Pikes Peak Association of Realtors the na- tion was on the brink.

Click here for the rest of the article

Credit crunch boosts cost of redevelopment

2008-02-12T10:02:00.000-07:00

From the Colorado Springs Gazette

By RICH LADEN

THE GAZETTE

February 12, 2008 - 7:19AM

Homeowners and lenders aren’t the only ones feeling the financial pain of the nation’s subprime mortgage mess and credit crunch.

A first wave of road, utility and other improvements for the city’s North Nevada Avenue redevelopment project will cost millions more than expected because the Colorado Springs Urban Renewal Authority will have to pay a higher interest rate on money it’s borrowing to fund the work, an authority official said Monday.

The higher cost, however, isn’t expected to delay construction of a Costco Wholesale Club, Lowe’s Home Improvement Warehouse and Kohl’s department store, which will anchor a shopping center that will be a centerpiece of the Nevada project, the official said. The stores are expected to open in summer 2009.

Click here for the rest of the article

A shout out to fellow NAI Highland Commercial Group Brokers

2007-08-01T16:25:00.000-06:00

In July, NAI Highland Commercial Group closed two significant transactions in Colorado Springs. The first was the sale of the Colorado Square building in downtown Colorado Springs. Jim Spittler and Michael Palmer represented the owners in the 25.2 million dollar transaction. For additional details on this transaction please click the link below.

Downtown Springs Building sells for $25.2 million

The other transaction, completed by Randy Dowis and Bob Garner, will be highlighted in another blog posting. Stay tuned...

Coming Soon to Colorado Springs? Franchisees needed!!

2007-08-01T16:12:00.000-06:00

Upon returning from the annual ICSC (International Shopping Center Council) convention in Las Vegas this past May, we heard a very common statement regarding Colorado Springs. It went a little something like this "We'd love to be in Colorado Springs, but we are having trouble finding good franchisees." After hearing this for the umpteenth time, we put our heads together and determined that we needed to help fill this void. What we've come up with to help the franchisors out was to contact the Chamber of Commerce and the folks at the soon to be closed Intel facility and try and get some of the information out through word of mouth and their respective PR departments. Numerous franchises have said they are very interested in participating in this program. Franchises such as V's Barbershop, Fantastic Sam's, Saxby's Coffee,UPS Store, Kahala Brands (Blimpie's, Cold Stone, Samurai Sam's, TacoTime, etc) among others have expressed a great deal of interest and have given us their franchising information. We are constantly seeking out new franchises that are looking to land in the Colorado Springs market as well, and hope to add to our growing list of Franchises. NAI Highland Commercial Group has not evaluated any of the aforementioned concepts and business plans and that would be the responsibility of any potential franchisee to determine if any of the franchises are a fit. If any one has an interest in obtaining more of this information, please call either Jim or Jamie Spittler at 719.577.0044

Colorado Military Funds Up For Vote

2007-06-20T12:08:00.000-06:00

This article outlines the new funds that are expected to help Fort Carson, in southern Colorado Springs grow. The ripple effect of this is the continued growth of the Fountain Valley. Fountain, Colorado, in southern El Paso County, will be the greatest beneficiary to the growth at Fort Carson with added homes, retail and support services and new businesses.

By Lisa Ryckman, Rocky Mountain News
June 14, 2007

A U.S. Senate committee votes today on whether Colorado moves one step closer to more than $500 million for military construction, money that would pay for everything from beds for veterans to dental care for active duty soldiers.

The funds are part of the 2008 Military Construction Appropriations bill expected to be approved today by the Senate Appropriations Committee, according to committee member U.S. Sen. Wayne Allard, R-Loveland.

The funding bill, which Allard spokesman Steve Wymer said contains the largest amount for Colorado in at least a decade, would come up for full Senate consideration later this year.

"Colorado remains a top priority for defense and military construction spending, and these dollar amounts reflect that," Allard said.

Most of the $529.6 million would go for expansion at Fort Carson, which is in the midst of a five-year, $2 billion building blitz to accommodate 8,000 to 12,000 more troops and their 18,000 family members. The arrival this year of the 4th Infantry Division will help push Fort Carson troops to about 25,000, post spokeswoman Dee McNutt said.

For the rest of the article, please click on the link below

Fort Carson to receive an additional $500+ million to support expansion

City Council Inks Re-Development Deal for Downtown

2007-06-13T11:10:00.000-06:00

This is a long awaited move forward for the Urban Renewal project for Downtown Colorado Springs. The on again, off again plans for trying to expand and improve downtown appear to be moving forward. The following article from the Gazette highlight the transaction, scheduled to close on June 28th.

Council Inks Re-Development Deal

Two New Projects in Colorado Springs set to break ground

2007-05-10T10:35:00.000-06:00

From the Colorado Springs Gazette

Ready, Set, Dig

The drawing boards of real estate developers are cluttered with projects that never make it to groundbreaking, let alone ribbon-cutting.

After years of fits and starts, however, two developments that could change the landscape of northern Colorado Springs and the city’s downtown are poised to get under way.

Really.

Site work has started for a 10-story, 306-room Renaissance Hotel and conference center that will be part of Inter-Quest Marketplace, a mixeduse development east of Interstate 25 and InterQuest Parkway.

To read more please click the link below

Ready, Set, Dig

First Quarter 2007 Retail Market Review Part 1

2007-04-19T11:23:00.000-06:00

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.

City of Colorado Springs gives $50,000 for study

2007-04-02T09:41:00.000-06:00

Article from Colorado Springs Gazette.

This is great news for the redevelopment of North Nevada Avenue. Both the city and the University of Colorado-Colorado Springs are working together to kick off the new research park, which as the article states will help bring 1,000 new jobs to the Springs. Additionally, this is good news for the long awaited retail development that's slated to go on the west side of Nevada Avenue. The retail development will be anchored by Costco, Gander Mountain (it would be the first of either retailer in El Paso County) and Lowe's and will have inline space and pad sites available.

Upcoming events!

2007-03-28T13:28:00.000-07:00

Stay tuned to the Colorado Springs Retail News as we will be posting about the first quarter of 2007 in the coming weeks. We will first focus on the retail market and the trends that the market place is enduring through vacancy rates, rental rates and building sales. In the weeks following we will touch on the other market segments, including office, industrial and land. As always, if there is any questions or content that you would like to see added to the blog, please leave us a comment and we will do our best to address those requests.

Cheers,
Jamie

Welcome!!

2007-03-28T09:08:00.000-07:00

This blog is intended to be an informational newsletter to give insight and updates on the ever changing commercial real estate market in Pikes Peak region. This blog will focus on the retail sector but we will covering all the commercial real estate sectors (Industrial, Office, Land and Apartments) We plan on having guest bloggers, Q & A's with various people involved in the various aspects of commercial real estate and lots of interesting commentary. It's exciting for us to have this blog as it will provide us a great way of staying in touch with clients, business partners and anyone else that is looking for an alternative source of information on commercial real estate in the Pikes Peak region. We encourage feedback through the comments section, and will try to appease our readers should you have a suggestion or content that you'd like to see.

Enjoy and Cheers!!
Jamie Spittler