REPORT BOULDER - Unique Properties · 2019. 4. 16. · Under Construction Properties Boulder Retail Properties 5 Square Feet 74,000 Percent of Inventory 0.4% Preleased 58.5% UNDER

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OFFICEINDUSTRIAL RETAILMULTIFAMILY

MARKETREPORT

BOULDER

Q1|2019

MARKETREPORT

RETAIL MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 6

Construction 8

Under Construction Properties 9

Sales 10

Sales Past 12 Months 11

Economy 13

Market Submarkets 16

Supply & Demand Trends 18

Rent & Vacancy 21

Sale Trends 24

Boulder Retail

4/16/2019Copyrighted report licensed to Unique Properties, Inc. - 1010488.

OverviewBoulder Retail

12 Mo Deliveries in SF

46 K12 Mo Net Absorption in SF

(68.6 K)Vacancy Rate

5.5%12 Mo Rent Growth

2.3%Moving into the second quarter of 2019, the retailvacancy rate in Boulder was in the mid 5% range. Whilethis represents a continuation of tight conditions, both theavailability vacancy rates are up moderately from thelows reached about two years ago. Development playeda small role in the uptick, but a larger contribution camefrom a handful of large block spaces that recently hit themarket.

Nationally, store closings rose fairly substantially in 2017and accelerated again in 2018 as e-commercecontinues to pressure big box retailers. Even a metro likeBoulder with strong economic and demographicfundamentals is not immune to these structural

headwinds.

Rents posted an average annual gain of nearly 4% from2015-2017, and outperformed the national average formore than five straight years ending in 2017. Rentgrowth has continued to outpace the national average in2018 and 2019 to-date. Following the national trend,however, rent growth has cooled from the gains realizedearlier in the cycle.

Also mirroring the national trend, investment activity hasdropped off in Boulder's retail sector after peaking in2016. Dollar sales volume came in at a six year low in2018.

KEY INDICATORS

Asking RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$29.0517.0%1,161,728Malls 17.6% 0 0 0

$26.040.7%1,139,984Power Center 3.6% 0 0 0

$22.687.6%6,107,851Neighborhood Center 8.8% (14,095) 0 7,500

$18.326.1%1,190,822Strip Center 7.2% (4,623) 0 0

$20.722.5%7,478,722General Retail 4.1% (9,956) 0 66,500

--0Other - 0 0 0

$22.175.5%17,079,107Market 6.9% (28,674) 0 74,000

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

6.1%6.3%0.6%Vacancy Change (YOY) 8.6% 2010 Q1 3.7% 2017 Q1

23,230102,431(68.6 K)Net Absorption SF 560,784 2007 Q2 (283,871) 2018 Q1

65,142143,09646 KDeliveries SF 872,894 2006 Q4 5,500 2012 Q3

1.1%0.8%2.3%Rent Growth 4.0% 2017 Q4 -4.9% 2009 Q2

N/A$96.7M$101 MSales Volume $289.4M 2016 Q1 $24.0M 2011 Q3


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LeasingBoulder Retail

Boulder's retail market posted negative net absorptionduring five out of the past eightquarters ending in 19Q1.This marks a clear turnaround from a 12 quarterconsecutive stretch of positive net absorption ending in17Q1.

The retail vacancy rate has edged up from a cycle low ofjust under 4% at the start of 2017 to the mid-5% rangemoving into 19Q2. Several larger move-outs haveplayed an outsized role in the uptick.

In March 2017, JCPenney announced it would be closingits 100,000-SF Longmont location at the St. VrainCentre and vacated the space in 17Q3. In a positive July2018 surprise, the entire space vacated by JC Penneywas leased by At Home, a Texas-based home decorchain.

Sports Authority closed all of its stores nationally over ayear ago, including a 40,000-SF location at 301 MarshallRoad in Superior. As has been the case with otherrelatively large blocks, the space was marketed asdivisible to smaller tenants that are more typical intoday's retail environment. In 18Q3, the property secureda 23,000-SF lease from Stickley Furniture, and a 17,000SF lease from Goldfish Swim School later in the quarter.

In May of 2017, Walmart announced it would close a54,000-SF Walmart Neighborhood Market location at theDiagonal Plaza shopping center in Boulder. The storeofficially closed in June 2017, and remained vacant andavailable at the onset of 2019.

Since the beginning of 2014, Boulder’s retail inventoryhas expanded by just over 4%, placing it in the top 20%of the 200 largest metro areas. A host of keydemographic and economic metrics such as job, income,and population growth (although population growth hasrecently slowed), suggest that this development wascertainly warranted. Boulder has the highest medianincome in the Front Range, and has posted strongeremployment and population growth than the nationalaverage over the past five years.

The availability rate has alternatively been controlled bythe demolition or redevelopment of large block vacantbuildings. In 2017, a former 90,000-SF Walmart inLongmont was demolished (that building had beenvacant since 2011, when Walmart opened up a largercenter down the street). A contact involved in thedecision to demolish the building noted a lack of interestfrom tenants following Walmart's exit, and furthermorethat it wasn't the right type of store for the current retailenvironment.

NET ABSORPTION, NET DELIVERIES & VACANCY


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VACANCY RATE

AVAILABILITY RATE


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12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

Longmont Ret 97,829 0 0 0 0 0 97,829St. Vrain Centre

Boulder Ret 40,000 0 0 0 0 0 40,000Superior Marketplace (1)

Boulder Ret 21,930 0 0 0 0 0 18,074Lafayette Promenade

Boulder Ret 60,126 5,197 (5,197) 0 0 0 15,877Pearl Street Mall

Boulder Ret 12,000 0 0 0 0 0 12,000500 Marshall Rd

Boulder Ret 57,386 0 5,354 0 0 0 10,958Twenty Ninth Street

Boulder Ret 38,643 0 8,386 0 0 0 8,386Walnut Gardens

Boulder Ret 30,000 0 0 0 0 0 8,0511380 Horizon Ave

Boulder Ret 7,851 0 0 0 0 0 7,851The Village

Boulder Ret 7,000 0 4,042 0 0 0 6,479972 W Dillon Rd

Greeley Ret 6,404 0 0 0 0 0 6,404440 Erie Pky

Boulder Ret 6,244 0 0 0 0 0 6,244Village Square Shopping Center

Longmont Ret 16,867 0 0 0 0 0 6,171Westview Plaza

Longmont Ret 42,790 4,066 5,133 0 0 0 5,5531430-1440 Nelson Rd

Boulder Ret 5,500 0 5,500 0 0 0 5,5006315 Lookout Rd

Boulder Ret 5,507 0 0 0 0 0 5,400Superior Marketplace (2)

Boulder Ret 5,400 0 5,400 0 0 0 5,400Alpine Bank

461,477 9,263 28,618 0 0 0 266,177Subtotal Primary Competitors

16,617,630 924,339 13,838 (28,674) 0 0 (334,795)Remaining Boulder Market

17,079,107 933,602 42,456 (28,674) 0 0 (68,618)Total Boulder Market


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RentBoulder Retail

Strong fundamentals and solid demand drivers havetranslated into respectable, but not truly outsized rentgains this cycle. Rents posted average annual gains justshy of 4% from 2015-2017, the best three year stretchof this cycle, and well in excess of the national average.Mirroring the national trend, rent growth has moderatedmaterially since then, although gains continued tooutpace the national average early in 2019.

Following a national trend, the priciest and mostdesirable submarkets have outperformed this cycle.Rents in the cities of Boulder, Louisville, and Superiorhad surpassed last cycle’s highs by around 12%, thethree best performances in the metro. These cities alsocommand the highest retail rents in the metro (about$24/SF in both Boulder and Louisville, or a near 20%premium over the metro average).

MARKET RENT GROWTH (YOY)


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RentBoulder Retail

MARKET RENT PER SQUARE FOOT


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ConstructionBoulder Retail

Construction activity was close to five year lows movinginto 2019, and one of two 20,000 SF-plus projectsunderway was a 22,000-SF Tesla sales and servicecenter in Superior. The dealership is only the second ofits kind in the state of Colorado, joining a Littleton, COshowroom and service center that opened in 2017. TheSuperior location, slated to open in Spring of 2019, wasrecently listed for sale for $11.1 million, or $505/SF.

In early 2019, a 25,000 SF retail component of themixed-use (and long proposed) REVE developmentbroke ground in Downtown Boulder. That retailcomponent will join 244 apartment units and 109,000 SFof office space.

The bulk of this cycle’s supply additions came from theVillage at the Peaks, a 425,000-SF Lifestyle Center thatdelivered from 2015–16 in Longmont. The center is theredevelopment of the former Twin Peaks mall, a

450,000-SF center built in 1985 that was 50% vacantwhen it was acquired by for $8.5 million in 2011 by NewMark Merrill, which developed the new center. The mallis now essentially fully leased.

In the city of Boulder itself, development this cycle hasbeen minimal: Just 75,000 SF has delivered here sincethe start of 2013 (a 1.5% inventory expansion). Thisincludes just two developments in excess of 10,000 SF:A 14,000-SF Trader Joe’s that was built on the site of aformer Applebees at the Twenty Ninth Street mall, and a25,000-SF Jeep dealership that delivered in 2017 in thecity’s far east.

Tough zoning and planning rules make the city ofBoulder a difficult place to build in. Large-footprinttenants seeking to establish a presence in the core partof the city may need to demolish an existing building tofind buildable land, as was the case with Trader Joe's.

DELIVERIES & DEMOLITIONS


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Under Construction PropertiesBoulder Retail

Properties

5Square Feet

74,000Percent of Inventory

0.4%Preleased

58.5%UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jan-20193000 Pearl St

RÊVE Boulder24,500 5 Jun-2020

Southern Land Company

-1

Jan-2018Marshall Rd & McCaslin…

22,000 1 May-2019Game Creek Holdings

Game Creek Holdings2

Jul-2018150 Main St

Building 210,000 4 Nov-2019

-

-3

Jul-2018150 Main St

10,000 4 Jan-2020-

-4

Feb-2018Highway 287 Hwy

7,500 1 May-2019Hix Snedeker Companies

Hix Snedeker Companies5


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SalesBoulder Retail

Investment activity is off to a slightly stronger start after aslow 2018. One of the more notable deals in 2019 to-date closed in March, when Beverly Hills, CA-abasedAVG Partners acquired 955 S Hover Street, a 98,000 SFbuilding at the St. Vrain Centre, for $6.8 million ($69/SF).JCPenney closed its store there in 2017, only for AtHome to lease the entire space in mid-2018. Thatlocation opened up in late-2018, months before the dealclosed.

Sales volume clocked in at a six-year low in 2018, andless than half of the 2015-2017 average. Same-storecap rates were flat year-over-year in 2018, marking theend of an eight year stretch of continuous cap ratecompression.

One of the larger 2018 deals involved a property thatsold as a redevelopment opportunity. The owners ofBackcountry Pizza & Taphouse, the long-term tenant of2319 Arapahoe Ave in Boulder, acquired the 6,900-SFbuilding for $4.5 million ($656/SF) in April 2018 withundisclosed plans to redevelop the property in the future.The price equated to about $100/SF for the land, whichhad been owned by the same local family for generationsstretching back to the 1930's.

Nationally, sales volume declined across all propertytypes in 2017. But retail experienced the sharpest drop:Retail sales volume dropped by more than 15% year-over-year, as investors grew wary after an uptick instore closings by national brands, among other structuralheadwinds.

In Boulder, the headline trade of 2017 was the KroenkeGroup’s June acquisition of the Fox Creek Villageneighborhood center for $24.8 million ($231/SF) at a5.6% cap rate. The buyer acquired 108,000-SF of the-115,000 SF center, which is anchored by a 91,000-SFKing Soopers and was 97% leased at the time of thesale. Grocery-anchored centers have been an investorfavorite throughout this cycle, although Amazon’s recentacquisition of Whole Foods has arguably increased riskin an asset sub-class that has generally considered tobe less exposed to e-commerce than other retail types.

Retail investment volume hit all-time highs in both 2015and 2016: A then-record $170 million in sales wasrecorded in 2015, followed by just over $225 million in2016.

SALES VOLUME & MARKET SALE PRICE PER SF


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Sales Past 12 MonthsBoulder Retail

Sale Comparables

80Avg. Cap Rate

7.1%Avg. Price/SF

$158Avg. Vacancy At Sale

1.4%SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $280,000 $2,000,270 $1,300,000 $16,600,000

Price Per SF $20 $158 $205 $1,303

Cap Rate 6.0% 7.1% 7.1% 9.2%

Time Since Sale in Months 1.0 5.7 5.5 11.9

Property Attributes Low Average Median High

Building SF 880 12,758 6,430 108,467

Stories 1 1 1 2

Typical Floor SF 0 10,102 5,304 108,467

Vacancy Rate At Sale 0% 1.4% 0% 100%

Year Built 1886 1969 1971 2014

Star Rating 2.3


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Sales Past 12 MonthsBoulder Retail

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 Liquor Mart1950 29,256 0% $16,600,000 $567

1750 15th St9/25/2018 -

-2 2805 Pearl St1995 6,934 0% $6,219,047 $8975/16/2018 -

-3 2010 21st St- 18,828 0% $5,800,000 $3082/5/2019 -

-4 Twin Peaks Square1985 69,300 0% $5,274,464 $76

800 S Hover St8/6/2018 -

-5 2144 N Main2006 15,616 10.7% $4,350,000 $279

2144 N Main St10/1/2018 7.2%

-6 2835 Pearl St1995 11,662 0% $4,280,953 $3675/16/2018 -

-7 1135 Broadway St1960 31,277 0% $4,000,000 $1281/16/2019 -

-8 Former Bp Gas Station1996 5,631 0% $3,500,000 $622

1051 S Hover St2/27/2019 -

-9 2718 Pine St1960 5,675 0% $2,850,000 $5023/5/2019 -

-10 B1974 17,316 4.6% $2,730,792 $158

7960 Niwot Rd1/15/2019 7.6%

-11 Concepts Furniture & Ac…1995 10,014 0% $2,500,000 $250

800 S Main St10/30/2018 -

-12 3325 28th St1966 108,467 0% $2,300,000 $216/27/2018 9.2%

-13 Advance Auto Parts2006 7,000 0% $2,074,000 $296

1410 Main St4/19/2018 6.0%

-14 972 W Dillon Rd2000 7,000 0% $2,050,000 $2932/28/2019 7.0%

-15 Twin Peaks Square1985 19,250 0% $1,925,536 $100

800 S Hover St8/6/2018 -

-16 At Home1993 97,829 0% $1,921,300 $20

955 S Hover St8/30/2018 -

-17 1375 Sherman Dr1974 8,300 0% $1,851,478 $2236/1/2018 6.3%

-18 101 E 2nd Ave1910 6,430 93.1% $1,735,300 $27010/22/2018 -

-19 103 S Public Rd1965 6,693 0% $1,605,000 $24012/26/2018 -

-20 2008 Pearl St1955 1,228 0% $1,600,000 $1,3035/21/2018 -


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EconomyBoulder Retail

Boulder has a dynamic economy, and job growth hasoutperformed the national benchmark throughout virtuallyall of the current cycle. Total nonfarm payrolls hadexceeded the prerecession peak by nearly 30,000 perDecember 2018 employment data, representingcumulative growth of almost 20%.

The most recent employment numbers suggest thatBoulder is still managing to produce solid job gainsdespite having one of the lowest unemployment rates inthe country. Employment growth has cooled off from the2.5% to 3% range that was typical earlier in the cycle,however. Since the start of 2017, employment has grownat an average year-over-year rate of 2.2%.

Affordability is an increasing concern, and likely apredominant factor in the population growth slowdownobserved over the past two years. Population datareleased in September 2018 pegged 2017 populationgrowth at a mere 0.4%, down from 1.0% in 2016. From2011 to 2015, the population grew by an average of1.5% per-year. Meanwhile, population growth heldsteady in more affordable Northern Colorado metros.Greeley (Weld County) posted 3.5% population growthfor a second straight year in 2017, a cyclical high. FortCollins saw its population rise by 1.6% in 2017, virtuallyunchanged from the 1.7% increase the prior year.

Notably, much of the explosive growth in the Greeleymetro is occurring in far southwest Weld County,bordering longmont, and easily within commutingdistance to central Boulder. Cities here such as Erie,Firestone, and Frederick each saw cumulative populationgrowth of 22% or more over the past five years, andresidential development is exploding. The SouthwestWeld County apartment submarket illustrates thedramatic growth here: The market-rate apartment stockis slated to climb from less than 150 units at the start of2016, to 1,500 units by year-end 2019, with many of thesmaller cities here now seeing their first ever largeapartment developments.

A takeaway from the growth in Weld County is thataffordable housing options are being created inclose—and commutable—proximity to the city of Boulder.This should facilitate economic expansion, and act assome counter to the headwinds posed by the difficulty ofresidential building (and increasing lack of affordable

options) in the city of Boulder itself.

As of 18Q3, housing prices were a staggering 75% of thepeak of last cycle. According to the Federal HousingFinance Agency's All-Transactions House Price Index,home prices have increased by more than 10% annuallyon average over the last five years, and have increasedat an annual rate north of 8% in every quarter since thestart of 2014.

A number of different industries have contributed to thisgrowth, but high tech companies continue to grab mostof the headlines, and for good reason. Tech companieshave flourished in Boulder thanks to a well-developedinfrastructure that stems from a synergistic relationshipwith the University of Colorado. Firms looking to hirehave no shortage of qualified graduates from which tochoose, although the labor market—both in Boulder andin the broader Colorado Front Range—has beenexceptionally tight for years.

The amount of flex space in Boulder speaks to howimportant the tech sector is to the economy. Flex space,which draws demand from high-tech tenants needingboth office and R&D space, represents just over half ofthe entire industrial stock. San Jose is the only othermetro in the country where flex space comprises at leasthalf of the industrial stock.

Several Fortune 500 companies also help solidify theeconomy, including GE, IBM, Lockheed Martin, andQualcomm. Google, which employed three or fourhundred employees in the metro earlier in the cycle, nowemploys upwards of 1,000 and is actively expanding withthe completion of its 200,000-SF campus. The firmbought the first phase of its campus in a record-breakingdeal, and further made its commitment to the area clearby announcing plans to move forward with a 100,000-SFexpansion of the campus.

Uber and Twitter also have a presence in the metro, andthe high tech backbone should continue to be animportant source of high-paying job growth in Boulder.Of course, there’s always the possibility of being overlyexposed to a certain sector, and high tech andinformation jobs do account for about 20% of office-using employment, in the neighborhood of SanFrancisco’s level.


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BOULDER EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Jobs Current Growth 10 Yr Historical 5 Yr Forecast

-1.46%-0.88%0.41%1.90%1.63%2.44%1147.819Manufacturing

0.15%0.75%1.00%1.61%1.10%0.13%720.626Trade, Transportation and Utilities

0.18%0.79%0.77%1.37%0.22%-0.65%869.918 Retail Trade

0.64%0.92%0.84%-0.61%1.39%-1.53%621.17Financial Activities

0.55%0.54%-0.03%2.12%0.51%5.72%1300.638Government

1.03%1.34%1.35%2.26%4.29%4.71%596.46Natural Resources, Mining and Construction

0.96%1.43%2.10%2.99%2.17%2.84%852.227Education and Health Services

1.20%1.34%2.38%2.42%2.71%3.03%1306.236Professional and Business Services

0.00%0.18%-0.13%-0.77%0.29%0.93%2237.18Information

1.01%0.92%2.37%2.85%2.42%4.20%1022.022Leisure and Hospitality

0.20%0.31%0.87%1.77%1.31%1.75%816.16Other Services

Total Employment 197 1.0 2.93% 1.76% 2.01% 1.26% 0.77% 0.56%

Source: Moody's Analytics

LQ = Location Quotient

Source: Moody’s Analytics

YEAR OVER YEAR JOB GROWTH


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DEMOGRAPHIC TRENDS

Current ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10-Year Change

Metro U.S. Metro U.S.

Forecast Change (5 Yrs)

Population 328,757,125329,269 1.3% 0.6% 1.2% 0.7% 1.0% 0.6%

Households 126,771,516130,496 1.6% 1.1% 0.7% 0.8% 1.4% 1.0%

Median Household Income $64,350$87,638 4.7% 3.7% 3.0% 2.4% 3.4% 2.8%

Labor Force 163,320194,813 2.8% 1.1% 1.0% 0.6% 1.2% 0.8%

Unemployment 3.8%2.8% 0.3% -0.2% -0.3% -0.5% - -

Source: Moody’s Analytics

POPULATION GROWTH

Source: Moody's Analytics

LABOR FORCE GROWTH INCOME GROWTH


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SubmarketsBoulder Retail

BOULDER SUBMARKETS


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SubmarketsBoulder Retail

SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 Boulder 11,126 65.2% 1 3 54 0.5% 1808 3 35 0.3% 1

2 Longmont 5,947 34.8% 2 2 20 0.3% 2519 1 4 0.1% 2

SUBMARKET RENT

Growth

Asking Rent

Per SFSubmarketNo.

12 Month Asking Rent Annualized Quarterly Rent

RankRank GrowthRank

1 Boulder -0.5%1 2.3% 2$24.83 1

2 Longmont -1.0%2 2.4% 1$17.18 2

SUBMARKET VACANCY & NET ABSORPTION

12 Month Net Absorption

Rank Construct. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Boulder 752,211 6.8% -(172,823) -1.6% 22

2 Longmont 181,391 3.1% -97,801 1.6% 11


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Supply & Demand TrendsBoulder Retail

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2023 59,641 0.3% 0.2%41,407 1.417,380,752

2022 56,125 0.3% 0.2%32,494 1.717,321,111

2021 55,326 0.3% 0.1%11,075 5.017,264,986

2020 83,466 0.5% 0%2,720 30.717,209,660

2019 52,487 0.3% 0.2%40,136 1.317,126,194

YTD 5,400 0% 0.1%13,782 0.417,079,107

2018 66,140 0.4% 0%(5,745) -17,073,707

2017 (80,891) -0.5% -0.8%(140,627) -17,007,567

2016 279,787 1.7% 1.4%245,579 1.117,088,458

2015 200,916 1.2% 1.5%258,797 0.816,808,671

2014 (30,247) -0.2% 0.4%73,228 -16,607,755

2013 19,889 0.1% 1.2%200,285 0.116,638,002

2012 12,567 0.1% 0.9%156,482 0.116,618,113

2011 21,917 0.1% -0.2%(31,421) -16,605,546

2010 (154,209) -0.9% -0.2%(39,226) -16,583,629

2009 39,544 0.2% -0.3%(42,104) -16,737,838

2008 134,594 0.8% -0.2%(26,387) -16,698,294

2007 353,291 2.2% 2.6%424,592 0.816,563,700

MALLS SUPPLY & DEMAND



2023 3,282 0.3% 0.1%1,712 1.91,174,273

2022 3,090 0.3% 0.1%1,181 2.61,170,991

2021 3,043 0.3% 0%(543) -1,167,901

2020 2,697 0.2% -0.2%(2,050) -1,164,858

2019 433 0% 0.1%853 0.51,162,161

YTD 0 0% 0.2%2,630 01,161,728

2018 0 0% -13.9%(161,005) -1,161,728

2017 0 0% 1.0%12,160 01,161,728

2016 245,542 26.8% 19.4%224,995 1.11,161,728

2015 174,648 23.6% 15.7%144,065 1.2916,186

2014 14,000 1.9% 2.5%18,494 0.8741,538

2013 0 0% 0.5%3,602 0727,538

2012 7,067 1.0% 4.5%32,731 0.2727,538

2011 0 0% 5.3%38,360 0720,471

2010 7,027 1.0% -0.6%(4,528) -720,471

2009 0 0% 0.4%2,500 0713,444

2008 0 0% 4.6%32,600 0713,444

2007 141,373 24.7% 20.5%146,173 1.0713,444


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POWER CENTER SUPPLY & DEMAND



2023 1,430 0.1% 0%(17) -1,145,442

2022 1,345 0.1% 0%(449) -1,144,012

2021 1,331 0.1% -0.2%(2,345) -1,142,667

2020 1,174 0.1% -0.3%(3,873) -1,141,336

2019 178 0% -0.4%(4,635) -1,140,162

YTD 0 0% -0.2%(2,369) -1,139,984

2018 3,800 0.3% 5.0%56,967 0.11,139,984

2017 0 0% 1.1%11,952 01,136,184

2016 9,150 0.8% 3.3%37,449 0.21,136,184

2015 0 0% -2.7%(30,483) -1,127,034

2014 0 0% -2.1%(23,632) -1,127,034

2013 0 0% 0.7%7,636 01,127,034

2012 0 0% -0.6%(6,439) -1,127,034

2011 0 0% -0.3%(3,806) -1,127,034

2010 0 0% 1.1%12,914 01,127,034

2009 8,412 0.8% -0.2%(2,467) -1,127,034

2008 66,323 6.3% 11.9%133,458 0.51,118,622

2007 117,725 12.6% 3.6%37,426 3.11,052,299

NEIGHBORHOOD CENTER SUPPLY & DEMAND



2023 16,212 0.3% 0.2%10,744 1.56,177,301

2022 15,248 0.2% 0.1%7,568 2.06,161,089

2021 15,042 0.2% 0%(2,775) -6,145,841

2020 13,315 0.2% -0.2%(10,283) -6,130,799

2019 9,633 0.2% 0.2%13,184 0.76,117,484

YTD 0 0% 0.1%8,850 06,107,851

2018 21,930 0.4% 1.6%95,558 0.26,107,851

2017 9,024 0.1% -3.9%(235,797) -6,085,921

2016 5,000 0.1% 0.2%10,251 0.56,076,897

2015 0 0% -0.3%(18,615) -6,071,897

2014 22,291 0.4% 0.6%33,706 0.76,071,897

2013 0 0% 2.9%173,188 06,049,606

2012 5,500 0.1% 1.3%76,914 0.16,049,606

2011 0 0% -0.3%(17,835) -6,044,106

2010 0 0% -2.3%(141,021) -6,044,106

2009 0 0% 0.2%12,355 06,044,106

2008 41,238 0.7% -1.1%(67,081) -6,044,106

2007 32,150 0.5% 2.4%141,909 0.26,002,868


Page 19


STRIP CENTER SUPPLY & DEMAND



2023 768 0.1% 0%(372) -1,193,690

2022 719 0.1% -0.1%(682) -1,192,922

2021 706 0.1% -0.2%(2,458) -1,192,203

2020 628 0.1% -0.3%(3,826) -1,191,497

2019 47 0% -1.1%(13,161) -1,190,869

YTD 0 0% -1.3%(16,058) -1,190,822

2018 0 0% 0.2%2,793 01,190,822

2017 0 0% 1.6%19,035 01,190,822

2016 0 0% -1.1%(13,147) -1,190,822

2015 0 0% 2.4%28,260 01,190,822

2014 3,580 0.3% 2.5%29,671 0.11,190,822

2013 17,007 1.5% 1.0%12,227 1.41,187,242

2012 0 0% -0.3%(2,969) -1,170,235

2011 0 0% -0.8%(9,171) -1,170,235

2010 0 0% 1.5%18,004 01,170,235

2009 7,200 0.6% 4.7%55,143 0.11,170,235

2008 0 0% -4.1%(47,936) -1,163,035

2007 9,590 0.8% 0.3%3,142 3.11,163,035

GENERAL RETAIL SUPPLY & DEMAND



2023 37,949 0.5% 0.4%29,340 1.37,690,046

2022 35,723 0.5% 0.3%24,876 1.47,652,097

2021 35,204 0.5% 0.3%19,196 1.87,616,374

2020 65,652 0.9% 0.3%22,752 2.97,581,170

2019 42,196 0.6% 0.6%43,895 1.07,515,518

YTD 5,400 0.1% 0.3%20,729 0.37,478,722

2018 40,410 0.5% 0%(58) -7,473,322

2017 (89,915) -1.2% 0.7%52,023 -7,432,912

2016 20,095 0.3% -0.2%(13,969) -7,522,827

2015 26,268 0.4% 1.8%135,570 0.27,502,732

2014 (70,118) -0.9% 0.2%14,989 -7,476,464

2013 2,882 0% 0%3,632 0.87,546,582

2012 0 0% 0.7%56,245 07,543,700

2011 21,917 0.3% -0.5%(38,969) -7,543,700

2010 (161,236) -2.1% 1.0%75,405 -7,521,783

2009 23,932 0.3% -1.4%(109,635) -7,683,019

2008 27,033 0.4% -1.0%(77,428) -7,659,087

2007 52,453 0.7% 1.3%95,942 0.57,632,054


Page 20

Rent & VacancyBoulder Retail

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2023 117 0.6% 5.5%$23.17 1,110,130 6.4% 0.1%

2022 116 0.9% 5.0%$23.04 1,094,521 6.3% 0.1%

2021 115 0.4% 4.0%$22.84 1,073,470 6.2% 0.2%

2020 115 1.0% 3.6%$22.74 1,031,834 6.0% 0.4%

2019 114 2.6% 2.6%$22.51 953,586 5.6% 0.1%

YTD 112 1.0% 1.0%$22.17 933,602 5.5% -0.1%

2018 111 1.9% 0%$21.95 941,984 5.5% 0.4%

2017 109 4.0% -1.8%$21.55 870,099 5.1% 0.4%

2016 105 3.2% -5.6%$20.72 810,363 4.7% 0.1%

2015 101 3.9% -8.5%$20.08 776,155 4.6% -0.4%

2014 98 3.0% -12.0%$19.32 834,036 5.0% -0.6%

2013 95 2.4% -14.5%$18.76 938,087 5.6% -1.1%

2012 93 2.0% -16.5%$18.32 1,118,483 6.7% -0.9%

2011 91 -1.8% -18.2%$17.97 1,262,398 7.6% 0.3%

2010 92 -3.1% -16.7%$18.29 1,209,060 7.3% -0.6%

2009 95 -4.6% -14.0%$18.88 1,324,043 7.9% 0.5%

2008 100 -2.6% -9.9%$19.79 1,242,395 7.4% 0.9%

2007 103 0.4% -7.5%$20.31 1,081,414 6.5% -0.6%

MALLS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 116 -0.2% 1.9%$29.40 211,038 18.0% 0.1%

2022 116 0.1% 2.0%$29.45 209,543 17.9% 0.1%

2021 116 -0.3% 1.9%$29.41 207,714 17.8% 0.3%

2020 116 0.3% 2.2%$29.48 204,199 17.5% 0.4%

2019 115 1.8% 1.8%$29.39 199,523 17.2% 0%

YTD 114 0.6% 0.6%$29.05 197,345 17.0% -0.2%

2018 113 1.4% 0%$28.86 199,975 17.2% 13.9%

2017 112 7.2% -1.4%$28.46 38,970 3.4% -1.0%

2016 104 6.2% -8.0%$26.54 51,130 4.4% 1.1%

2015 98 7.9% -13.4%$24.99 30,583 3.3% 3.3%

2014 91 4.4% -19.7%$23.16 0 0% -0.6%

2013 87 5.4% -23.2%$22.18 4,494 0.6% -0.5%

2012 83 3.6% -27.1%$21.04 8,096 1.1% -3.6%

2011 80 -5.2% -29.7%$20.30 33,760 4.7% -5.3%

2010 84 -8.1% -25.8%$21.42 72,120 10.0% 1.5%

2009 92 -8.4% -19.3%$23.30 60,565 8.5% -0.4%

2008 100 -8.9% -11.8%$25.44 63,065 8.8% -4.6%

2007 110 -1.3% -3.2%$27.95 95,665 13.4% -4.2%


Page 21


POWER CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 116 0.9% 5.6%$27.38 21,903 1.9% 0.1%

2022 115 1.1% 4.7%$27.15 20,540 1.8% 0.1%

2021 113 0.7% 3.5%$26.84 18,826 1.6% 0.3%

2020 113 1.0% 2.8%$26.67 15,235 1.3% 0.4%

2019 111 1.8% 1.8%$26.39 10,265 0.9% 0.4%

YTD 110 0.5% 0.5%$26.04 7,830 0.7% 0.2%

2018 110 1.3% 0%$25.93 5,461 0.5% -4.7%

2017 108 5.2% -1.3%$25.60 58,628 5.2% -1.1%

2016 103 5.7% -6.2%$24.33 70,580 6.2% -2.6%

2015 97 6.8% -11.2%$23.02 98,879 8.8% 2.7%

2014 91 3.4% -16.9%$21.55 68,396 6.1% 2.1%

2013 88 4.6% -19.6%$20.84 44,764 4.0% -0.7%

2012 84 3.0% -23.1%$19.94 52,400 4.6% 0.6%

2011 82 -4.0% -25.3%$19.36 45,961 4.1% 0.3%

2010 85 -7.1% -22.2%$20.18 42,155 3.7% -1.1%

2009 92 -8.3% -16.2%$21.72 55,069 4.9% 0.9%

2008 100 -8.3% -8.7%$23.68 44,190 4.0% -6.6%

2007 109 0% -0.4%$25.83 111,325 10.6% 7.3%

NEIGHBORHOOD CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 125 0.5% 7.5%$23.98 524,756 8.5% 0.1%

2022 124 0.9% 7.0%$23.86 519,718 8.4% 0.1%

2021 123 0.5% 6.1%$23.66 512,474 8.3% 0.3%

2020 123 1.4% 5.5%$23.53 495,100 8.1% 0.4%

2019 121 4.0% 4.0%$23.20 471,924 7.7% -0.1%

YTD 118 1.7% 1.7%$22.68 466,767 7.6% -0.1%

2018 116 3.0% 0%$22.30 475,617 7.8% -1.2%

2017 113 4.9% -2.9%$21.64 549,245 9.0% 4.0%

2016 107 3.0% -7.5%$20.63 304,424 5.0% -0.1%

2015 104 4.1% -10.2%$20.02 309,675 5.1% 0.3%

2014 100 3.4% -13.7%$19.24 291,060 4.8% -0.2%

2013 97 2.8% -16.5%$18.62 302,475 5.0% -2.9%

2012 94 2.1% -18.8%$18.11 475,663 7.9% -1.2%

2011 92 -1.4% -20.4%$17.74 547,077 9.1% 0.3%

2010 94 -2.2% -19.3%$17.99 529,242 8.8% 2.3%

2009 96 -4.2% -17.5%$18.39 388,221 6.4% -0.2%

2008 100 -2.3% -13.9%$19.19 400,576 6.6% 1.8%

2007 102 -0.1% -11.9%$19.64 292,257 4.9% -1.9%


Page 22


STRIP CENTER RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 118 0.6% 5.4%$19.13 79,133 6.6% 0.1%

2022 117 0.9% 4.9%$19.02 78,188 6.6% 0.1%

2021 116 0.5% 4.0%$18.86 76,958 6.5% 0.2%

2020 116 1.0% 3.5%$18.77 73,994 6.2% 0.4%

2019 114 2.5% 2.5%$18.60 69,741 5.9% 1.1%

YTD 113 1.0% 1.0%$18.32 72,602 6.1% 1.3%

2018 112 2.0% 0%$18.14 56,544 4.7% -0.2%

2017 109 2.9% -2.0%$17.78 59,337 5.0% -1.6%

2016 106 3.3% -4.7%$17.28 78,372 6.6% 1.1%

2015 103 3.4% -7.8%$16.73 65,225 5.5% -2.4%

2014 100 3.1% -10.8%$16.17 93,485 7.9% -2.2%

2013 97 1.8% -13.5%$15.68 119,576 10.1% 0.3%

2012 95 1.5% -15.1%$15.41 114,796 9.8% 0.3%

2011 93 -0.3% -16.3%$15.18 111,827 9.6% 0.8%

2010 94 -2.4% -16.0%$15.23 102,656 8.8% -1.5%

2009 96 -3.9% -13.9%$15.61 120,660 10.3% -4.2%

2008 100 -0.8% -10.4%$16.25 168,603 14.5% 4.1%

2007 101 0.3% -9.7%$16.38 120,667 10.4% 0.5%

GENERAL RETAIL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2023 111 0.7% 4.6%$21.55 273,300 3.6% 0.1%

2022 110 1.0% 3.8%$21.40 266,532 3.5% 0.1%

2021 109 0.5% 2.8%$21.19 257,498 3.4% 0.2%

2020 109 0.8% 2.4%$21.09 243,306 3.2% 0.5%

2019 108 1.6% 1.6%$20.93 202,133 2.7% 0%

YTD 107 0.5% 0.5%$20.72 189,058 2.5% -0.2%

2018 106 1.1% 0%$20.61 204,387 2.7% 0.5%

2017 105 2.4% -1.0%$20.39 163,919 2.2% -1.9%

2016 103 2.3% -3.4%$19.91 305,857 4.1% 0.4%

2015 100 2.7% -5.6%$19.46 271,793 3.6% -1.5%

2014 98 2.3% -8.0%$18.95 381,095 5.1% -1.1%

2013 96 1.3% -10.1%$18.52 466,778 6.2% 0%

2012 94 1.5% -11.3%$18.29 467,528 6.2% -0.7%

2011 93 -1.2% -12.6%$18.02 523,773 6.9% 0.8%

2010 94 -2.4% -11.5%$18.24 462,887 6.2% -3.0%

2009 96 -3.5% -9.3%$18.68 699,528 9.1% 1.7%

2008 100 -0.5% -6.0%$19.37 565,961 7.4% 1.3%

2007 100 1.2% -5.6%$19.46 461,500 6.0% -0.6%


Page 23

Sale TrendsBoulder Retail

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2023 -- - -- 149- $232.01 6.9%

2022 -- - -- 149- $231.63 6.9%

2021 -- - -- 149- $231.02 6.8%

2020 -- - -- 151- $234.05 6.7%

2019 -- - -- 153- $238.32 6.5%

YTD $25.8 M35 2.6% $223.73$1,517,444 1537.4% $238.08 6.4%

2018 $79.0 M52 4.0% $146.81$2,194,228 1527.0% $236.36 6.4%

2017 $156.2 M84 5.3% $224.16$2,714,021 1476.4% $229.05 6.4%

2016 $221.2 M88 4.1% $359.95$3,265,212 1376.9% $213.61 6.6%

2015 $177.8 M92 6.5% $169.63$2,413,735 1336.9% $206.32 6.6%

2014 $96.2 M65 5.3% $120.91$1,806,610 1237.4% $190.95 6.9%

2013 $93.0 M56 3.1% $195.29$2,052,775 1097.9% $169.49 7.2%

2012 $55.2 M64 4.4% $226.67$1,246,439 1067.0% $164.91 7.3%

2011 $27.2 M48 2.8% $137.93$893,904 967.9% $148.74 7.7%

2010 $58.1 M40 3.4% $108.95$1,973,196 91- $141.33 8.0%

2009 $38.4 M41 1.7% $151.72$1,179,953 888.7% $137.15 8.1%

2008 $52.4 M59 2.0% $178.68$1,242,506 1007.3% $155.47 7.6%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

MALLS SALES





2023 -- - -- 147- $257.49 6.7%

2022 -- - -- 148- $258.27 6.6%

2021 -- - -- 148- $258.81 6.6%

2020 -- - -- 151- $263.54 6.4%

2019 -- - -- 154- $269.76 6.2%

YTD -- - -- 155- $270.22 6.1%

2018 -- - -- 154- $269.57 6.1%

2017 -- - -- 149- $260.58 6.2%

2016 $140.2 M19 22.0% $547.65$7,378,166 136- $237.54 6.4%

2015 -- - -- 131- $228.29 6.4%

2014 -- - -- 123- $214.21 6.7%

2013 -- - -- 109- $190.86 7.0%

2012 -- - -- 107- $186.22 7.1%

2011 -- - -- 96- $168.14 7.5%

2010 -- - -- 91- $159.29 7.7%

2009 -- - -- 88- $154.08 7.9%

2008 -- - -- 100- $174.69 7.3%




Page 24


POWER CENTER SALES





2023 -- - -- 139- $218.56 7.0%

2022 -- - -- 138- $217.64 6.9%

2021 -- - -- 138- $216.57 6.8%

2020 -- - -- 139- $218.94 6.7%

2019 -- - -- 142- $222.68 6.5%

YTD $1.2 M1 0.2% $514.99$1,220,000 142- $222.78 6.4%

2018 -- - -- 141- $221.86 6.4%

2017 $0.4 M1 0.3% $129.38$406,000 139- $218.41 6.4%

2016 $2.9 M4 1.4% $326.57$1,473,632 1299.4% $203.33 6.5%

2015 -- - -- 126- $197.33 6.6%

2014 -- - -- 121- $189.48 6.7%

2013 -- - -- 107- $167.58 7.0%

2012 $0.9 M8 27.4% $164.56$900,000 1056.8% $164.78 7.1%

2011 $0 M14 22.6% -- 958.0% $149.96 7.5%

2010 -- - -- 91- $142.97 7.7%

2009 $7.8 M3 2.0% $355.82$2,616,667 887.3% $138.36 7.9%

2008 -- - -- 100- $157.15 7.3%



NEIGHBORHOOD CENTER SALES





2023 -- - -- 149- $207.70 7.0%

2022 -- - -- 149- $207.56 7.0%

2021 -- - -- 149- $207.10 6.9%

2020 -- - -- 151- $209.56 6.8%

2019 -- - -- 153- $212.38 6.5%

YTD $4.1 M6 2.4% $157.70$1,369,759 1517.6% $210.41 6.5%

2018 $11.4 M7 5.7% $38.74$2,855,325 1519.2% $209.67 6.5%

2017 $36.2 M10 5.7% $168.22$4,027,778 1465.6% $203.04 6.5%

2016 $12.8 M4 0.6% $331.92$3,207,725 1347.2% $186.74 6.7%

2015 $116.0 M26 12.3% $155.73$5,044,190 1306.4% $180.64 6.7%

2014 $44.8 M20 8.6% $92.40$2,984,320 1228.8% $169.24 7.0%

2013 $43.4 M8 3.4% $233.14$10,847,661 1086.2% $150.70 7.3%

2012 $0.8 M3 1.0% $174.78$790,000 105- $146.65 7.4%

2011 $3.8 M3 0.5% $133.96$1,255,000 96- $132.95 7.8%

2010 $33.5 M5 4.2% $133.72$6,708,390 91- $126.24 8.1%

2009 $2.9 M3 0.2% $201.85$970,000 8815.9% $122.38 8.2%

2008 $2.6 M3 0.2% $800.00$2,600,000 100- $139.20 7.6%




Page 25


STRIP CENTER SALES





2023 -- - -- 145- $216.11 7.0%

2022 -- - -- 145- $215.78 7.0%

2021 -- - -- 144- $215.23 6.9%

2020 -- - -- 146- $217.98 6.8%

2019 -- - -- 149- $221.65 6.5%

YTD $1.0 M1 1.0% $78.99$967,200 1487.0% $221.09 6.5%

2018 $7.3 M6 5.9% $161.54$1,451,500 1476.6% $219.54 6.5%

2017 $17.2 M6 6.1% $311.27$3,440,260 1436.9% $213.92 6.5%

2016 $6.7 M6 3.9% $144.08$1,132,500 1347.3% $199.57 6.6%

2015 $12.8 M10 8.4% $149.05$1,984,833 1287.3% $191.32 6.7%

2014 $13.1 M9 11.5% $105.67$1,636,875 1187.6% $176.30 7.0%

2013 $8.7 M7 5.6% $131.23$1,510,000 1058.8% $156.96 7.4%

2012 $1.3 M5 2.3% $214.29- 1028.3% $152.71 7.5%

2011 $3.4 M3 2.2% $130.28$1,475,000 928.1% $137.39 7.9%

2010 $1.3 M5 0.5% $401.91$815,000 88- $130.76 8.2%

2009 $2.3 M3 2.4% $79.73$758,333 866.9% $128.95 8.2%

2008 $8.5 M7 6.1% $134.77$1,423,083 1007.8% $149.13 7.6%



GENERAL RETAIL SALES





2023 -- - -- 152- $252.29 6.9%

2022 -- - -- 151- $251.60 6.8%

2021 -- - -- 151- $250.77 6.8%

2020 -- - -- 153- $254.15 6.6%

2019 -- - -- 156- $259.47 6.4%

YTD $19.5 M27 3.7% $261.28$1,625,006 1577.0% $260.50 6.3%

2018 $60.3 M39 3.4% $304.18$2,233,830 1556.8% $257.68 6.4%

2017 $102.4 M67 6.4% $241.98$2,400,998 1506.6% $249.23 6.4%

2016 $58.5 M55 4.5% $221.50$1,533,576 1416.3% $235.43 6.5%

2015 $49.0 M56 3.3% $225.38$1,066,595 1376.9% $227.45 6.6%

2014 $38.3 M36 2.9% $204.92$1,263,017 1255.9% $207.48 6.9%

2013 $40.8 M41 3.1% $182.86$1,125,185 1108.1% $183.68 7.2%

2012 $52.2 M48 4.4% $229.52$1,266,021 1076.9% $178.36 7.3%

2011 $20.1 M28 2.0% $140.11$824,554 966.9% $160.13 7.8%

2010 $23.2 M30 4.0% $83.29$994,163 91- $152.19 8.0%

2009 $25.4 M32 2.8% $134.89$1,070,162 897.4% $147.61 8.2%

2008 $41.3 M49 3.3% $182.04$1,168,537 1007.0% $166.44 7.6%




Page 26

Documents

REPORT BOULDER - Unique Properties · 2019. 4. 16. · Under Construction Properties Boulder Retail Properties 5 Square Feet 74,000 Percent of Inventory 0.4% Preleased 58.5% UNDER