Commercial real estate momentum cited

Posted by Neil Kalinski on Monday, January 14th, 2013 at 3:59pm.

Boulder’s and Broomfield’s commercial real-estate market has had a pretty good year, and looks set to enter 2013 with some momentum, Lynda Gibbons predicted in November while giving an overview of the local real-estate picture at the Boulder Valley Real Estate Conference.

Gibbons is president and managing broker of commercial real estate brokerage firm Gibbons-White Inc.

At the time of the conference, vacancy rates were down and rents were climbing for office space in Boulder and Broomfield, with rents reaching $30 per square foot in downtown Boulder. The downtown vacancy rate was about 6 percent, Gibbons said.

In the city of Boulder, office rents were $21.50 per square foot with an 8 percent vacancy rate, and the average rent for Boulder County was $20.50 per square foot. In Broomfield, the vacancy rate was 14 percent, and the average rent was $27.50 per square foot.

For flex space in the city of Boulder, the average rent was $10 per square foot, while it was $9.25 in Boulder County and $9 in Broomfield.

Looking forward, 2013 shows promising signs. Karlin Real Estate is expected to have work under way on its redevelopment of the former Daily Camera building, and W.W. Reynolds Cos. has a major office building planned for 13th and Walnut streets that will be going through the entitlement process.

In the multifamily housing market, growth also is expected to continue. Apartment projects in the planning stages for Gunbarrel and along 28th Street near the University of Colorado are going through the planning process.

One of the few clouds seen last year might have a silver lining, Gibbons said. Phillips 66 recently announced it was not going to build a research and training center in Louisville and put its land up for sale. That was a setback, but with 10 corporate-campus relocations in north Denver taking place in 2012, it might not be on the market for long.

“It wouldn’t be preposterous to assume that gets snapped up pretty quickly,” Gibbons said, adding, “or so we can hope.”

Courtesy of the Boulder County Business Report

Neil Kalinski

RE/MAX of Boulder, Inc

303-415-2279

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