Denver’s Booming Retail Market
The Denver metro areas is one of the hottest cities in the United States, at least according to its economic outlook and the growth in Denver commercial real estate. Nearly 3 million people call the seven-county metro area home, and the population continues to expand fueled in part by lots of job opportunities. Once here, these Denverites need places to shop and dine, and as a result, Denver’s retail market is booming.
Millennials Tend to Be Entrepreneurial
Millennials, those born between 1980 and 1999, make up the largest population segment in Denver. This generation tends to be highly entrepreneurial, and they’ve come to the right place since Forbes recently named Denver the second best city to launch a start-up business in their 2014 assessment. Regardless if they start their own business or work for another, work space and location are extremely important to Millennials which will make business owners more cognizant of office space to lure the best and brightest employees.
Limited Construction, Marijuana Legalization Lead to Low Retail Vacancy Rates
Many Denver developers have refrained from building while the city’s economy was still in recovery mode, which has led to higher leases and record-low vacancy rates for industrial (4.5 percent), restaurant (5.9 percent) and retail (5.8 percent) space. The legalization of marijuana in Denver has also increased demand for space, as marijuana retailers stake their claim on any available warehouse and retail space to grow and sell their merchandise. New construction is focused on very large projects that can be broken up into smaller spaces for several tenants so developers can adequately manage the economies of scale. Rents are expected to stay high for at least the next 12 to 18 months.
Denver’s Retail Outlook Looks Bright
As a result of an abundance of retail space built between the 1990s and the start of the recession in 2008, Denver has 66 feet of retail space per person, one of the highest rates in the country, and well above the national average of 41 feet per person. Denver has the perfect mix of attributes to make it one of the best retail cities in the United States, and that’s one of the reasons Denver’s leaders have created a strategic retail development plan to reach that goal.
How to Use This Information
Denver’s population growth, specifically in Millennials, has contributed to a surge in retail opportunities and commercial real estate demand. If you are interested in starting a business or expanding your operations in Denver to serve these residents, then look no further than Capital Realty Group. Our company strives to give you the best commercial real estate in Denver that embraces your visions for the perfect office. Through our REAL-ized Visions program, we have compiled an impressive portfolio that will allow us to cater to our clients’ office space needs. For more information, call us at 303-573-0377, or visit our website to learn more.
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Categorized in: Denver Real Estate News
This post was written by Capital Realty