2018 annual report - nai mountain commercial...3,450 feet, over 5,000 skiable acres, 31 ski lifts,...

2018 Annual Report Commercial Market

NAI Mountain Commercial | 2018 Annual Report of 13

Introduction Our History... Your Future

NAI Mountain Commercial was founded originally as Vail Commercial Advisors in April 2006, to fulfill the unmet need of providing dedicated

commercial property solutions for investors, property owners, business owners and developers in the Colorado Resort Markets. With more

than fifty combined years of commercial management experience in the Resort Market, NAI Mountain Commercial possesses the requisite

expertise and work ethic to ensure our clients assets are supported with the level of care and individual attention they deserve. NAI Mountain

Commercial is the only company 100% dedicated to commercial and investment real estate from Summit to Pitkin Counties and 100%

dedicated to maximizing your return on investment.

NAI Mountain Commercial offers something unique to the Rocky Mountain Resort Market as the only dedicated and full-service commercial

real estate provider for property owners, business owners, and investors. With access to 6,700 professionals and 375 offices worldwide

through our affiliation with NAI Global, NAI Mountain Commercial has the tools and resources to represent you in all aspects related to office,

retail, light industrial, multi-family, and mixed-use properties.

Whether you are looking for brokerage, leasing, property or asset management, consulting, tenant representation, or market research, we offer a full purview of real estate services. We

look out for your best interest by taking time to understand your specific needs, and then guide you through the entire process to ensure successful and optimal delivery. As part of a

global network, we have full access to industry experts and the latest technologies, which we utilize to provide the most effective solutions for you.

Knowledge & Creative Solutions

There is absolutely no substitute for knowledge in this industry. Real estate transactions often hinge on accurate analysis, creativity, decisiveness, the ability to identify every value-

enhancing opportunity, and a network of trusted affiliates and associates. These advantages, gained through years of hard work, demonstrated business acumen, and a resourceful

global network, are found among every member of the NAI Mountain Commercial team.

Action

The proven success of the NAI Mountain Commercial team is a testament to the vision of its founder. As a cornerstone of any good company, performance is measured by growth,

revenue, and the continued value it provides to those it serves. The consistent results achieved by NAI Mountain Commercial firmly support the company’s successful business model,

and these achievements are transferred to the many satisfied clients and business partners of the firm. In life and in business there is no substitute for action. Without action, goals are

not achieved and ideas remain stagnant. We are empowered by sharing, communicating, and collaborating, and we pride ourselves on being global in our thinking, but local in our

approach.

Mike Pearson, President NAI Mountain Commercial


Table of Contents

Table of Contents Introduction .......................................................................................................................................................................................................................................... 2

Our History... Your Future ....................................................................................................................................................................................................................................................................................................... 2 Knowledge & Creative Solutions ............................................................................................................................................................................................................................................................................................. 2 Action ...................................................................................................................................................................................................................................................................................................................................... 2

Table of Contents ................................................................................................................................................................................................................................ 3

Upper Valley .......................................................................................................................................................................................................................................... 4 Trends ..................................................................................................................................................................................................................................................................................................................................... 4 Upper Valley Commercial Occupancy ................................................................................................................................................................................................................................................................................... 4 Vail Village Rental Rates ........................................................................................................................................................................................................................................................................................................ 4 Lionshead Rental Rates ......................................................................................................................................................................................................................................................................................................... 4

Mid-Valley .............................................................................................................................................................................................................................................. 5 Trends ..................................................................................................................................................................................................................................................................................................................................... 5 Mid-Valley Commercial Occupancy ....................................................................................................................................................................................................................................................................................... 5 Avon/Eagle Vail Rental Rates .................................................................................................................................................................................................................................................................................................. 5 Edwards Rental Rates ............................................................................................................................................................................................................................................................................................................ 5 Beaver Creek Rental Rates ..................................................................................................................................................................................................................................................................................................... 5

Lower Valley ......................................................................................................................................................................................................................................... 6 Trends ..................................................................................................................................................................................................................................................................................................................................... 6 Lower Valley Commercial Occupancy .................................................................................................................................................................................................................................................................................... 6 Eagle/Gypsum Rental Rates .................................................................................................................................................................................................................................................................................................. 6

Eagle County Statistics...................................................................................................................................................................................................................... 7 Commercial Transactions ....................................................................................................................................................................................................................................................................................................... 7 Residential Transactions ......................................................................................................................................................................................................................................................................................................... 7 Eagle County Building Permits ................................................................................................................................................................................................................................................................................................ 7 Eagle County Retail Sales ....................................................................................................................................................................................................................................................................................................... 8 Eagle County Sales Tax by Town ............................................................................................................................................................................................................................................................................................ 8 Eagle County Unemployment ................................................................................................................................................................................................................................................................................................. 8 Enplanements ......................................................................................................................................................................................................................................................................................................................... 8

Travel & Tourism in Vail .................................................................................................................................................................................................................. 9 About Vail, Colorado ............................................................................................................................................................................................................................................................................................................... 9 5 Year Change in Spending .................................................................................................................................................................................................................................................................................................... 9 Top Spending Categories ....................................................................................................................................................................................................................................................................................................... 9 Top Activities in the Mountain Region ................................................................................................................................................................................................................................................................................... 10 Top Visiting US States ........................................................................................................................................................................................................................................................................................................... 10 Vehicles in Parking Structures .............................................................................................................................................................................................................................................................................................. 10 Direct Travel Impacts in Eagle County .................................................................................................................................................................................................................................................................................. 10

The Market .......................................................................................................................................................................................................................................... 11 Showcase Sale Listing .......................................................................................................................................................................................................................................................................................................... 11 Showcase Sale Listing .......................................................................................................................................................................................................................................................................................................... 11 Showcase Sale Listing .......................................................................................................................................................................................................................................................................................................... 11 Sales Transactions Facilitated by NAI Mountain Commercial: .............................................................................................................................................................................................................................................. 12 Lease Transactions Facilitated by NAI Mountain Commercial:............................................................................................................................................................................................................................................. 12

NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE ACCURACY OF THE INFORMATION CONTAINED HEREIN, AND THE SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, PRIOR SALE, LEASE OR FINANCING, OR WITHDRAWAL WITHOUT NOTICE, AND OF ANY SPECIAL LISTING CONDITIONS IMPOSED BY OUR PRINCIPALS NO WARRANTIES OR REPRESENTATIONS ARE MADE AS TO THE CONDITION OF THE PROPERTY OR ANY HAZARDS CONTAINED THEREIN ARE ANY TO BE IMPLIED.


Upper Valley

Upper Valley

Trends

The Vail Village and Lionshead markets continue to be strong. Although we saw a slight increase in vacancies over the year, the majority were filled quickly. The current net absorption rate is positive with approximately 4,859 square feet remaining vacant, slightly higher than last year. Following one of the worst snow pack years in recent history, the 18/19 ski season seems to be going very well. We are hopeful the current season’s snowfall will continue to positively impact the net absorption for the remainder of 2019.

Upper Valley Commercial Occupancy

Vail Village Rental Rates

Lionshead Rental Rates

Data Source: NAI Mountain Commercial

SF Available: 4,859

SF Occupied: 1,066,928

Total SF: 1,071,787

0

20

40

60

80

100

120

140

07 08 09 10 11 12 13 14 15 16 17 18

Dolla

rs p

er

Squa

re F

oot


Prime Retail Secondary Retail

0

10

20

30

40

50

60

70

7 8 9 10 11 12 13 14 15 16 17 18

Dolla

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Prime Retail Secondary Retail


Mid-Valley

Mid-Valley

Trends

Although the Mid-Valley saw a slight increase in the vacancy rate during 2018, rental rates and sales continue to remain steady. There were several significant transactions that took place in the retail and office sectors, including the trade of the Edwards Riverwalk Theater space early in the year.

Mid-Valley Commercial Occupancy

Avon/Eagle Vail Rental Rates

Edwards Rental Rates

Beaver Creek Rental Rates


SF Available: 87,319


Total SF: 3,311,758

0

5

10

15

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30

07 08 09 10 11 12 13 14 15 16 17 18

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Retail Office Flex

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07 08 09 10 11 12 13 14 15 16 17 18

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Retail Office Flex

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07 08 09 10 11 12 13 14 15 16 17 18

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Prime Retail


Lower Valley

Lower Valley

Trends

The Lower Valley has seen great numbers of growth over the last few years, which continued through 2018. Rental rates for retail and office sectors are increasing year over year, and getting close to the pre-recession highs. With the increase number of flights and renovation projects taking place at the Eagle County Regional Airport, we expect the Lower Valley to lead the area in new developments and absorption rates through 2019.

Lower Valley Commercial Occupancy

Eagle/Gypsum Rental Rates


SF Available: 57,803


Total SF: 2,618,980

0

2

4

6

8

10

12

14

16

18

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dolla

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Squa

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Retail Office


Eagle County Statistics

Eagle County Statistics

Commercial Transactions

Residential Transactions

Eagle County Building Permits

$0

$50

$100

$150

$200

$250

$300

$350

2010 2011 2012 2013 2014 2015 2016 2017 2018

Data Source: Land Title Guarantee Company

Dollar Volume of Commercial Transactions (in Millions)

$0

$500

$1,000

$1,500

$2,000

$2,500

2010 2011 2012 2013 2014 2015 2016 2017 2018

Data Source: Land Title Guarantee Company

Dollar Volume of Residential Transactions (in Millions)

0

100

200

300

400

500

600

700

800

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Data Source: Eagle County US

Valuation of Building Permits (in Millions) Number of Building Permits


Eagle County Retail Sales

Eagle County Sales Tax by Town

Eagle County Unemployment

Enplanements

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016(through

Feb.)

Reta

il S

ale

s

Data Source: Colorado Department of Revenue

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Sale

s T

ax C

olle

cte

d (

in M

illio

ns)

Data Source: Eagle County Finance Department

Gypsum Town of Eagle Vail Avon Unincorporated

0%

2%

4%

6%

8%

10%

12%

Data Source: United States Bureau of Labor Statistics

Percentage Unemployed

0

50,000

100,000

150,000

200,000

250,000

Data Source: Eagle County Airport

Number of Boardings


Travel & Tourism in Vail

Travel & Tourism in Vail

About Vail, Colorado

Located in Eagle County at the base of Vail Mountain, the Town of Vail combines the best alpine resorts in the world with a friendly, small-town feel. Vail is served by the Eagle County

Airport, located 30 miles to the West near Gypsum. Within the town, many areas are pedestrianized, modeled after car-free European ski towns. Vail also operates the largest free

shuttle bus system in the United States. The town is home to over 5,000 people, but attracts more than 2.2 million visitors each year.

Vail’s natural beauty is unsurpassed, with over a thousand acres of open space and a surrounding 350,000 acres of national forests, including Vail Mountain. With a vertical height of

3,450 feet, over 5,000 skiable acres, 31 ski lifts, and 195 marked ski trails on three faces; Vail Mountain is the largest ski mountain in North America.

In addition to skiing, the Town of Vail is home to a host of year-round recreational activities, including hiking and mountain biking. The town’s cultural center is also growing, with an

expanding culinary center and notable art and music venues throughout the summer, including: the Vail Film Festival, Vail International Dance Festival, and Bravo! Vail.

5 Year Change in Spending

Top Spending Categories

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Denver Metro MountainResorts

Pikes Peak All Other

Dir

ect S

pendin

g %

Change

Data Source: 2017 Colorado Tourism Roadmap, Colorado Tourism Office, Dean Runyan Associates

Year 1 Year 5

$-

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

Avera

ge S

pen

d

Data Source: 2017 Colorado Tourism Roadmap, Colorado Tourism Office, Longwoods International

2015


Vail Isn’t Just Skiing

While it’s true that over 1.6 million skiers and snowboarders travel to Vail every winter to

take advantage of the more than 5,000 skiable acres on the largest ski mountain in the

United States, Vail isn’t just skiing. The town attracts over 650,000 visitors every summer to

enjoy the natural beauty of the rocky mountains (52%), for rest and relaxation (50%), to take

advantage of the town’s shopping, dining, and leisure activities (28%), as well as a host of

outdoor activities available (24%). With such a high satisfaction rate among summer Vail

visitors (90% say they are “Extremely Satisfied” with their Vail experience), it’s no wonder

that over 80% of the 650,000 summer visitors are return visitors to Vail.

Top Activities in the Mountain Region

Top Visiting US States

Vehicles in Parking Structures

Direct Travel Impacts in Eagle County

Data Source: 2017 Colorado Tourism Roadmap, Colorado Tourism Office, Longwoods International

2015

National/State Parks Hiking

Swimming Skiing/Snowboarding

Camping Mountain Climbing

Other

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

Overn

ight

Leis

ure

Trips (

in

Thousa

nds)

Data Source: Town of Vail

0

50

100

150

200

250

300

350

400

450

11/12Season

12/13Season

13/14Season

14/15Season

15/16Season

Num

ber

of

Vehic

les (

in T

housands)

Data Source: Town of Vail

Vail Village Lionshead

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

$0

$200

$400

$600

$800

$1,000

$1,200

2000 2002 2004 2006 2008 2010 2012 2014 2015 2016 2017

Data Source: Colorado Travel Impacts 2000-2017p, Dean Runyan Associates

Spending (in Millions) Earnings (in Millions) Employment (# of Jobs)


The Market

Showcase Listings Showcase Sale Listing

Showroom/Warehouse Opportunity: $3,500,000

250 Lindbergh Dr, Gypsum, CO 81637

• Located on the east side of the Eagle County Regional Airport and less than 35 minutes from both Beaver Creek and Vail Ski Resorts.

• Fully sprinklered building with approximately 11,763 SF of showroom and 4,647 SF of warehouse.

• Current build-out: loading dock, two separate 12ft. garage doors, four bathrooms, 2,500 Ib capacity freight elevator, and kitchenette.

• Potential to convert a portion to residential use.

Showcase Sale Listing

Gas Station & C-Store Development: $950,000 2 Colorado River Rd, Gypsum, CO 81637

• 1.28 acre flat commercial pad site currently entitled for a fuel station and convenience store at Interstate 70 Exit 133.

• Programmed to be the only commercial amenity in the Two Rivers Village Community.

• Dotsero is located at the confluence of the Colorado and Eagle Rivers making it an attractive location for both full time residents and summer tourism.

• Located approximately 1,200 feet from CDOT truck parking lot 133.

Showcase Sale Listing

Restaurant & Real Estate Opportunity: $1,700,000

1060 W Beaver Creek, Avon, CO 81632

• Turn-key restaurant opportunity.

• Prime location at base of Beaver Creek Resort.

• Dinner seating capacity of 175.

• Includes real estate and all FF&E.

• Rustic build-out with two bars, stage and patio.


Significant Transactions Sales Transactions Facilitated by NAI Mountain Commercial:

Property Address Price Submarket Riverwalk Theater 34253 US HWY 6, Edwards $3,693,750 Mid-Valley

Lodge at Vail Condo 166 Gore Creek, Vail $1,025,000 Upper Valley Northstar Center Building A 429 Edwards Access Rd, Edwards $8,850,000 Mid-Valley Northstar Center Building B 439 Edwards Access Rd, Edwards $5,500,000 Mid-Valley

West Vail Mall 2161 N Frontage Rd, Vail $14,000,000 Upper Valley

Lease Transactions Facilitated by NAI Mountain Commercial:

Property Address Size Submarket Shops at Solaris 141 E Meadow, Vail 1,700 SF Upper Valley

Gateway Plaza 12 Vail Rd, Vail 1,040 SF Upper Valley Concert Hall Plaza 616 W Lionshead Cir, Vail 1,305 SF Upper Valley

Castle Peak Building 1143 Capitol St, Eagle 2,375 SF Lower Valley

245 Chapel Place Unit C201 Avon, Colorado 81620 +1 970 239 4199 naimountain.com [email protected]

2018 annual report - nai mountain commercial...3,450 feet, over 5,000 skiable acres, 31 ski lifts,...

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