The Denver real estate market continues the upward trajectory of the last few years. As of September 2018, new listings of single-family homes are up more than nine percent, and the number of homes under contract is up more than three percent. Demand remains strong, with the median sales price across all properties rising by 5.8 percent in one year.
While the future looks promising for buyers and investors in Denver’s residential real estate market, it shines even brighter for commercial properties in Denver. In the office, retail, and industrial arenas, Denver continues to draw investors thanks to high yields and increasing demand.
Office Space
For the first three months of 2018, sale prices for office space exceeded $316 per square foot, an increase of 29 percent from the last quarter of 2017. ― You can find some of the current offerings here:
- Front Range Medical Office Park: This is a facility built to house three tenants. At just over 13,000 square feet, the building sits on 2.2 acres. Constructed in 1973 and renovated in 2014 and 2016, this property sits on Clay and Bryant Streets and is listed at $3,500,000.
- Beeler Professional Building: This building is 17,670 square feet of prime investment potential. It features three stories with 11 suites. Seven tenants are currently leasing space of varying sizes. The lobby, hallway, and bathrooms have been recently renovated, and the building to a new roof in 2010. At $1,680,000, the Beeler Building would be an excellent choice for someone who wants to locate their business there and still collect rent from other tenants.
Retail Space
Demand for mixed-use retail space, small store areas, and restaurants continue to be high, up nine percent from the same time last year. With 1.2 million square feet under construction and 313,000 already spoken for, this is the highest figure for acquired retail space under construction in almost ten years. Lease rates are also up more than four percent over the previous year. Unique Properties is proud to list these retail spaces.
- Country Club Plaza Street Retail: This is a rare find in that it is 100 percent leased with built-in rental rate increases. Most of the tenants have been there since the building was constructed in 2003 and have at least two more years on their leases. The package is well worth the asking price of $4,350,000.
- Mountain View Plaza Retail/Office: This listing is for the fee simple interest in this mixed-use office and retail property on Highway 6 in Keystone. With more than 14,000 square feet of retail space at street level and almost 7,000 feet of office space, the building houses 18 condo units all owned by a single group. The location across from a major ski resort caters to businesses that serve tourists such as restaurants and grocery stores. Listed at $6,300,000, Mountain View Plaza may be just what you’ve been looking for.
Industrial Space
As Denver does not see much in the way of new construction of industrial facilities, lease rates are increasing. Around the airport and in the Northern part of the city, about 75 percent of the current pipeline is already spoken for. With the continuous growth of online shopping and its share of the market becoming larger and larger, the need for warehousing and distribution facilities grows as well. As those businesses open, grow, and expand, more workers move into the area, increasing the demand for nearby housing. Some of the options available now include:
- Lazydays RV – Johnstown: This listing is for the sale of an RV dealership portfolio, including three locations at Johnstown, Longmont, and Aurora. This high-profile property enjoys high visibility in a distinctly desirable location at $13,575,000.
- 4600 South Santa Fe Drive Flexible Space: If you’re looking for something more flexible than traditional industrial space, consider this unit. It houses a car dealership, general industrial, and multi-family residential space, all in a conveniently located package of five buildings. At $1,750,000, this is an excellent choice for redevelopment as well.
Denver Real Estate
Making a wise choice when investing in commercial real estate in Denver starts with choosing a knowledgeable and experienced brokerage firm as your partner. For assistance on finding the perfect place to relocate your business or to invest in for the future, contact Unique Properties. Priding ourselves on delivering hands-on leadership and a team of ambitious professionals, Unique Properties remains the most experienced, privately-owned commercial real estate brokerage firm in Colorado.
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