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Denver Commercial Real Estate Trends
May 18, 2016
Whether you’re new to the Denver commercial real estate market or a seasoned expert, it never hurts to stay on top of the latest trends. What’s on the horizon in Denver? In 2016 and beyond, industry experts are expecting to see these trends come to life:
Bargain stores will be in demand.
It’s no secret that e-commerce has threatened brick and mortar retailers for years. Because of this increased competition, there will be a spike in the number of off-price or outlet retailers looking for commercial space. Denver commercial real estate investors should expect to see the need for larger, department store sized spaces.
Boutique fitness studios.
From ballet-inspired barre to boot camp and rowing classes, the number of unique fitness routines has risen dramatically over the years. What does this mean for Denver commercial real estate? There will be a demand for spaces that can be built out to fit the needs of intense workouts. Think durable floors, mirrored walls and if the space is located closely to neighbors, perhaps sound proof walls as well. Unlike past fitness tenants, this group will need much smaller spaces to host more intimate, high-end workouts.
As more and more online companies attempt to compete by offering shorter delivery times, there will be an increased need for warehouse space on the Denver commercial real estate market. Companies will need to find warehouses close to large, metropolitan areas so they can quickly deliver to a huge market and remain competitive against industry giants. Another effect of these short delivery times? Multifamily tenants may begin to demand a way for deliveries to be left for them during the day while they’re not home. Some properties have even installed new models of lockers that allow deliverymen to securely leave behind packages that can only be accessed by the tenant to which it is addressed.
Instead of building Denver commercial real estate from the ground-up, many investors will choose to renovate existing properties, even if that means lengthy, extensive reconstruction. Land is becoming harder to come by, especially in desirable areas, so commercial real estate investors may have no other choice but to work with what they have.
Over the last few years, urban living has been on the rise across all age groups, and this is expected to continue for the next few years. Urban residents love the convenience of living close to work, retailers and restaurants, and investors should take note of this if they haven’t already. Although the suburbs are not a thing of the past just yet, the focus for Denver commercial real estate investors should be primarily on urban areas. Expect to see a rise in mixed-use urban properties, such as multifamily apartments with retail space in the lobby, that appeal to the on-the-go lifestyle of many urban residents.
Now that you’re familiar with the market trends, are you ready to purchase Denver commercial real estate? Contact the Denver commercial real estate experts at The Sherman Agency for help navigating the market.