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Denver Retail Bracing for Slow, But Steady Growth This Year

DENVER-Amid concerns of a recession, the Denver office of Marcus & Millichap predicts slow, but steady retail growth for this year. The forecast report says the metro area should experience a slight decline in vacancy despite an extra 3.7 million sf added in year 2000.

By John Rebchook | Updated on January 08, 2001

DENVER-The area’s retail market is facing slow and steady growth in 2001, according to a report by the Denver office of Marcus & Millichap Real Estate Investment Brokerage Co. “The Denver retail market has proven its strength as soaring completions were met with high absorption, keeping vacancy relatively stable,” says David Osborne, regional manager for Marcus & Millichap. “However, the frenetic pace has begun to subside, and slower, moderate sales and rental growth are anticipated during the next 12 months.”

The area’s low unemployment, around 2.2%, may eventually dampen economic growth in the region, he says. Still when the tallies are complete, it’s expected that metro Denver’s population has grown at 2.2%, more than double the US average of 1%. About 4 million sf of retail space has been started in the past 12 months, down 7.2% from a year ago.

An even more significant decline is expected this year, Osborne says. That’s because of the recent completion of FlatIron Crossing Mall in Broomfield, which began in 1999 and added 1.5 million sf of retail space to the market when it opened in 2000. Osborne also says the high absorption rate will stabilize vacancy rates, which may even drop slightly in 2001.

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