The commercial real estate market in Colorado performed well during the second quarter of 2017 thanks to robust job growth in the state according to a leading figure from the CBRE Group. The real estate information company, which released a market assessment on July 10, say that commercial tenants in Denver have now leased more space than they relinquished in 29 consecutive quarters. Vacancy rates remain extremely low in the Denver area, and experts feel that this is a situation that will likely persist for some time.
The CBRE market update reveals that even the beleaguered retail segment posted modest gains during the second quarter due to a decline in the number of vacant big-box stores. Competition for industrial space is expected to be particularly fierce in the coming years as about 75 percent of new industrial construction is scheduled to be built in or around Denver. Experts say that many of these projects involve warehouse and distribution facilities for online retailers like Amazon and Walmart.
However, even traditional brick-and-mortar retailers have reason to be cheerful according to the CBRE. The group reports that commercial property developers in Colorado delivered 313,000 square feet of new retail space during the second quarter and have a further 1.2 million square feet under construction. These figures represent a 9 percent improvement over the same period in 2016.
Attorneys with experience in this area may pay close attention to market trends because they know that commercial real estate developers often plan their projects months or even years in advance. Getting an office, warehouse or retail development off the ground involves navigating a labyrinth of regulations, permits, clearances and approvals, and even minor missteps can lead to ruinously expensive delays. Experienced real estate attorneys will likely be familiar with the legal and procedural challenges involved, and they could help developers to avoid common pitfalls and paperwork issues.