acancy CompVSAb
Retail Market Report • 2nd Quarter 2014
acancy CompVSAb
Colorado Springs, CO
Colorado Springs sales tax collections rebounded in May with the biggest increase since January, 2014, the City’s finance Department reported.
10%
Vacancy
Rates
Year-End
9%
10%
8%
9%
7%
8%
6%
7%
5%
6% '07
5%
'07
'08
'09
'10
'11
'12
'13 2Q'14
'08
'09
'10
'11
'12
'13 2Q'14
The largest retail benefactors of increased sales in 2014 are grocery stores – up 14.6 %
from the same time last year – and clothing stores – up 9.8%. Additionally, the population of Colorado Springs has continued to grow at pre-recession levels. Between July of
2012 and July 0f 2013, Colorado Springs grew 1.5% keeping on the long term growth
rate of 21% since 2000. All of these numbers are having and will have impact on retailers
Completions vs. Absorption
here.
Year End (in Thousands of SF)
400,000
We’re beginning to see this in the retail numbers. Market wide vacancy dropped from
300,000
400,000
6.4% at the end of Q1 to 6.3% at the end of Q2 2014. Absorption, 7,455 SF in Q1, was
84,072 at the end of Q2. Overall asking rental rates are still in decline though, dropping
200,000
300,000
from $10.70 to $10.67, showing there is still movement in fundamentals as it is still a
100,000
200,000
tenant market. A total of three retail buildings with 41,994 square feet of retail space
0
100,000
etail
were delivered to the market in the quarter, with 25,116 square feet still under construc-
-100,000
0
Completed
- Asking RentsAbsorbed
-100,000
tion at the end of the quarter. The amount of vacant sublease space in the Colorado
Springs market has trended down over the past four quarters. At the end of the third
quarter 2013, there were 73,689 square feet of vacant sublease space. Currently, there
are 37,714 square feet vacant in the market. The largest lease signings occurring in 2014
Asking Rental Rates
included the 7,104-square-foot-lease signed by Matress Firm at 5406 N Academy Blvd.;
Year-End ($/SF/Yr. Full Service)
the 6,090-square-foot-deal signed by Cowboy Star at University Village - Building F; and
$13
the 5,756-square-foot-lease signed by Sarges’ Grill at The Mart @ Fountain.
$12
$11
Page 1
$10
Page 1
'07
'08
'09
'10
'11
Source: CoStar
Quantum Commercial Group
101 N. Cascade Avenue, Suite 200
Colorado Springs, CO 80903
www.quantumcommercial.com
Commercial Real Estate Solutions
'12
'13 2Q'14
•
Retail center sales will continue to increase as strength in underlying numbers continues to improve and out of market investors continue to find value here
•
Average asking rental rates should start to head north
•
The overall recovery will continue
Key Transactions
* Transaction Represented by Quantum Commercial Group
DDR Corp
Conn Appliances Inc
Vickers Place LLC
purchased
225,062 SF
at 7620-7650 N Academy Blvd
Colorado Springs, CO
from
Jay Rosenbaum & Warren Dean
$30,600,000
purchased
42,664 SF
at 345 N Academy Boulevard
Colorado Springs, CO
from
Michael C Bullock
$2,250,000
purchased
20,400 SF
at 2310-2366 Vickers Drive
Colorado Springs, CO
from
Greco Vickers LLC
$500,000
Prepared by:
Candace Seaton
719.228.3624 • [email protected]
Lori Ondrick
719.228.3611 • [email protected]
2014 Quantum Commercial Group Inc
Retail Market Report • 2nd Quarter 2014
Colorado Springs, CO
Source: CoStar
By Submarket
Total SF
Buildings
Vacant SF
Vacant %
Available %
Net Absorption
Current
Year To Date
2,176
24,645
Under
Construction
SF
15,118
Asking Rent
Downtown
376
2,446,237
91,812
3.8%
3.4%
$14.22
East
824
11,044,906
1,143,031
10.3%
10.3%
3,251
92,120
0
$7.92
N & Northeast
935
15,837,444
877,991
5.4%
5.4%
60,609
-10,022
3,200
$13.18
Northwest
486
3,417,639
181,191
5.3%
5.2%
-3,695
-7,118
0
$12.17
Southeast
159
1,603,281
97,337
6.1%
5.6%
-2,544
-1,130
0
$9.57
Southwest
470
4,582,589
83,526
1.8%
1.8%
13.105
2,388
6,798
$15.19
Teller
205
1,197,780
60,093
5.0%
5.0%
145
-16,881
0
$9.54
3,455
41,129,876
2,534,981
6.3%
6.2%
73,046
84,072
25,116
$10.67
TOTALS
Quantum Commercial Group
Real Estate Advisors
Candace Seaton
Senior Broker, Retail & Investment
719.228.3624
[email protected]
Lori Ondrick
Retail & Investment
719.228.3611
[email protected]
retail terms and definitions
Total SF: Retail inventory includes all multi-tenant and single tenant
buildings at least 30,000 square feet. Shopping malls are not included
in calculations.
Retail Building Classifications: Super Regional Centers are properties
with greater than two million square feet of space, drawing from a trade
area encompassing multiple smaller submarkets. Sub Regional centers
include centers of 500,000 square feet or greater that service one main
submarket exclusively. Single Tenant retail includes power center tenants in free-standing centers as well as stand-alone retailers. Large Strip
Centers are car oriented strip retail centers of 150,000 square
2
feet or greater. Small Strip Centers are centers of 50,000 to 150,000
square feet, and include many local and grocery anchored centers.
estate taxes, insurance and common area maintenance are borne by the
tenant on a pro rata basis.
Vacancy and Availability: The vacancy rate is the amount of physically
vacant space divided by the inventory and includes direct and sublease
vacant. The availability rate is the amount of space available for lease
divided by the inventory.
* Quantum Commercial Group Inc. (QCG) & CoStar may revise reported
quarterly and final year-end figures.
Asking Rent: The dollar amount asked by landlords for available space
expressed in dollars per square foot per year. Retail rents are reported
on a triple net basis where all costs including, but not limited to, real
Reproduction in whole or part is permitted only with the written consent
of QCG. Some of the data in this report has been gathered from third
party sources and has not been independently verified by QCG. QCG
makes no warranties or representations as to the completeness or
accuracy thereof.
2014 Quantum Commercial Group Inc