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TODAY’s Broomfields Commercial Real Estate Market

Posted on: Feb 26 18

by: admin

OFFICE MARKET
There was over 6.5 million square feet of office space in Broomfield during the second quarter of 2017, Square feet by office Class are shown in the table. All three classes of office space reported increasing vacancy rates and increasing average lease rates during the second quarter of 2017 compared with the prior year. The Class A and Class B office markets are similarly sized in Broomfield, and posted a similar increase in the vacancy rate over-the-year. However, the Class B vacancy rate of 8.1 percent is 1 percentage point higher than the Class A rate. The Class C market, which is relatively small in Broomfield, posted the largest increase in vacancy rate compared to last year, rising to 5.4 percent. Despite the increase in vacancy, the Class C market posted a 12.9 percent increase in the average lease rate, the fastest increase of the three classes. The average Class A lease rate increased 0.9 percent over-the-year to $28.73 per square foot, while the Class B market posted a larger increase of 7.7 percent to $25.15 per square foot. The Metro Denver office market recorded mixed trends between the second quarters of 2016 and 2017. The vacancy rate for Class A office space rose 2.7 percentage points over-the-year to 12.3 percent vacancy and the average lease rate fell 1.5 percent to $30.07 per square foot. This average lease rate was $1.34 per square foot more than the Broomfield rate. Class B office space recorded a vacancy rate of 9.5 percent, 0.6 percentage points lower than the previous year, and the average lease rate rose 4.1 percent to $23.15 per square foot during the period. Class C space in Metro Denver reported no change in the vacancy rate over-the-year at 4.1 percent but an 8.8 percent increase in the average lease rate.

INDUSTRIAL MARKET
The Broomfield industrial market had over 3.4 million square feet of space during the second quarter of 2017, but limited availability as the vacancy rate was just 0.4 percent, as shown in Table 3.6 on the next page. As a result of the tight market, the average lease rate increased 14.8 percent between the second quarters of 2016 and 2017, rising to $6.90 per square foot. Despite the increasing lease rate, the Broomfield average lease rate was $0.66 per square foot lower than the Metro Denver average lease rate during the period. There was nearly 213 million square feet of industrial space in Metro Denver during the second quarter of 2017. The industrial vacancy rate rose 0.5 percentage points between the second quarters of 2016 and 2017 to 3.9 percent. This was 3.5 percentage points higher than the Broomfield vacancy rate during the period. The average lease rate increased 1.1 percent over-the-year to $7.56 per square foot.

RETAIL MARKET
The retail market in Broomfield totaled nearly 4.8 million square feet of space during the second quarter of 2017, representing 2.9 percent of the retail space in Metro Denver, as shown in Table 3.6 on the next page. The retail vacancy rate decreased to 9.6 percent during the second quarter of 2017, a 0.4 percentage point decrease in vacancy compared with the previous year’s level. The average lease rate for the retail market in Broomfield rose 64.5 percent over-the-year to $18.31 per square foot, with the large increase due to an unusually low average lease rate posted last year at this time. Metro Denver had nearly 166 million square feet of retail space during the second quarter of 2017, 1.6 million square feet more than last year at this time. The retail vacancy rate fell 0.1 percentage points to 4.5 percent as the average lease rate increased 5.7 percent to $17.42 per square foot. The retail average lease rate was $0.89 per square foot lower throughout Metro Denver than Broomfield during the second quarter of 2017.

Courtesy
Broomfield Economic Development
One Descombes Drive
Broomfield, CO 80020
(303) 464-5579

 

Broomfield Commercial Real Estate provides commercial real state sales & Leasing to established businesses, to start ups, to property owners and to investors in the greater Broomfield Colorado area

Contacts

Broomfield Commercial Real Estate Brokerage: Summit Commercial Brokers, 325 Interlocken Parkway Building A #105, Broomfield CO 80021

Broomfield Commercial Real Estate
325 Interlocken Parkway Building A #105,
Broomfield CO 80021
Phone: 720-600-9084
timconarro@gmail.com Copyright 2014