boulder q1 2020 - unique properties...apr 22, 2020 · 555 aspen ridge dr boulder county 38,000 q1...

BOULDER

MARKET REPORTINDUSTRIAL

Q1 2020

303.321.5888 UNIQUEPROP.COM

FULL-SERVICE COMMERCIAL REAL ESTATE SOLUTIONSPrivately-Owned and Operated for Over 40 Years

INDUSTRIAL MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 7

Construction 9

Under Construction Properties 10

Sales 11

Sales Past 12 Months 12

Economy 14

Market Submarkets 17

Supply & Demand Trends 19

Rent & Vacancy 21

Sale Trends 23

Boulder Industrial

4/22/2020Copyrighted report licensed to Unique Properties, Inc. - 1130503.

OverviewBoulder Industrial

278 K 492 K 6.7% 3.0%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

The coronavirus pandemic is having an unprecedentedimpact on the national and local economies. Joblessclaims due to shutdowns are skyrocketing as stay-at-home orders force non-essential businesses to shutteracross the state. The health of commercial real estateand the economy virtually hinges on the mitigation effortsto slow the spread of the virus.

Fiscal and monetary stimulus was quickly enacted andshould provide a bridge for many people and businessesimpacted by the crisis, at least in the short-term. TheGovernor's stay-at-home orders were extended throughApril 26, with the possibility of further extensions. We willbe updating our analysis frequently as more informationbecomes available. The current report largely reflects theenvironment before the pandemic.

The Boulder metro has a substantial flex inventory,

roughly 12.5 million SF, or nearly 50% of the broaderindustrial inventory. Out of the 390 metro areas in thecountry, only the similarly tech-driven San Jose metrohas a higher relative proportion of flex space. The flexvacancy rate was near cyclical lows heading into 2020.

While the large scale distribution market is limited, thissubset has started to see some growth. In Louisville,construction wrapped up on the second logistics propertyof this cycle in the Colorado Technology Center.

After record-setting years of investment in previousyears, sales volume moderated in 2019, but was still wellabove historical averages.

Investment activity is expected to slow to a crawl in thecoming quarters due to the financial uncertainty of theeconomy coming to a hard stop.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$10.506.2%9,524,339Logistics 8.1% (46,831) 278,355 409,029

$10.311.5%5,381,611Specialized Industrial 4.4% 106,303 0 0

$13.189.1%12,884,910Flex 15.2% (31,004) 0 63,231

$11.696.7%27,790,860Market 10.7% 28,468 278,355 472,260

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

6.3%11.2%-0.8%Vacancy Change (YOY) 17.8% 2007 Q4 5.8% 2020 Q1

331,091102,814492 KNet Absorption SF 923,308 2000 Q3 (2,201,787) 2008 Q2

342,429253,415278 KDeliveries SF 1,417,397 2000 Q4 0 2020 Q1

1.7%1.2%3.0%Rent Growth 6.1% 2018 Q4 -4.9% 2003 Q1

N/A$115.4M$126 MSales Volume $357.2M 2017 Q3 $22.6M 2009 Q4


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LeasingBoulder Industrial

In 2019, Boulder’s industrial market had its strongestyear for net absorption since 2016. More than 500,000SF was net absorbed last year as only 160,000 SFdelivered. This compressed vacancies to a cyclical low ofjust under 6% by the end of the year.

Although leasing activity is likely to be slower as thepandemic shutters non-essential businesses throughoutthe state, it would not be surprising to see tenantsexpand during this time. For example, Amazon recentlyannounced it would hire an additional 100,000 workers inorder to meet elevated delivery demand as people stayat home.

Roughly 20% of Boulder’s office-using employment is

tied to the high tech or information sectors, on par withSan Francisco's, and behind only San Jose's nationally.Unsurprisingly, an unusually large amount of demand inthe Boulder industrial market stems from tenants relatedto high tech industries.

Major tenants that occupy flex space, which comprises45% of the industrial stock (second only to San Josenationally), hail from a range of high tech industries. Flextenants that occupy at least 100,000 SF in the metroinclude Seagate Technology (a data storage company),Valleylab (which produces electrosurgical platforms) andArray BioPharma, a developer of small-molecule drugsaimed towards treating cancer.

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 Building SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absoption SF

Boulder County Ind 411,485 0 36,662 111,257 0 0 201,045333-335 Centannial Parkway

Boulder County Ind 136,610 0 0 0 0 0 136,610Colorado Technology Center (1)

Boulder Ind 152,002 0 0 0 0 0 45,4946265 Gunbarrel Ave


Boulder Ind 38,814 0 0 0 0 0 38,556Gunbarrel Tech Center

Boulder County Ind 118,000 40,120 38,000 0 0 0 38,000555 Aspen Ridge Dr

Longmont Ind 48,400 2,219 32,449 0 0 0 33,229The Campus at Longmont (1)

Boulder County Ind 106,795 18,216 23,340 0 0 0 32,509Colorado Tech Center


Boulder Ind 200,000 56,673 563 107 0 0 19,972Gunbarrel Business Park (1)

Longmont Ind 60,360 0 0 0 0 0 19,853Longmont Technology Park

Boulder Ind 125,336 0 0 0 0 0 19,200Foothills Business Park

Boulder Ind 36,746 0 18,373 0 0 0 18,373Flatiron Park

Longmont Ind 48,000 0 18,045 0 0 0 18,045The Campus at Longmont (2)

Longmont Ind 128,100 0 0 0 0 0 18,000PODS Facility

Boulder County Ind 17,087 0 0 0 0 0 17,087Monarch Park

Boulder Ind 14,630 0 0 0 0 0 14,630Gunbarrel Business Park (2)

1,739,042 117,228 167,432 111,364 0 0 743,907Subtotal Primary Competitors

26,051,818 1,734,671 (126,494) (82,896) 0 0 (256,892)Remaining Boulder Market

27,790,860 1,851,899 40,938 28,468 0 0 487,015Total Boulder Market


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TOP INDUSTRIAL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

1800 Nelson Rd * Longmont 152,218 GE Appliance Repair - -Q4 19

700 Tech Ct Boulder County 136,610 Charlotte’s Web Avison Young Etkin Johnson Real Est…Q2 19

333 Centennial Pky Boulder County 111,257 - - CBREQ1 20

6455 Spine Rd Boulder 56,673 Hain Celestial Savills Vista Commercial Advi…Q1 20

1275 Sherman Dr Longmont 43,030 Taylor Moving - Summit Commercial Br…Q3 19

6400 Lookout Rd Boulder 39,769 Front Range Biosciences - Keys Commercial Real…Q1 20

6837 Winchester Cir Boulder 38,556 - - Vista Commercial Advi…Q4 19

555 Aspen Ridge Dr Boulder County 38,000 - - Tebo PropertiesQ1 20

1925 Pike Rd Longmont 38,000 - - JLLQ3 19

333 Centennial Pky Boulder County 36,662 - - CBREQ3 19

1925 Pike Rd Longmont 20,000 PODS - JLLQ3 19

410 S Sunset St Longmont 19,853 - - Health Connect Propert…Q3 19

3550 Frontier Ave Boulder 19,200 1908 Brands, Inc - Cushman & WakefieldQ3 19

5311 Western Ave Boulder 16,156 Rowdy Mermaid Gibbons-White, Inc. Gibbons-White, Inc.Q3 19

455 Weaver Park Rd * Longmont 15,900 High Altitude Archery - -Q2 19

1325 Distel Dr Boulder County 15,000 - - Gibbons-White, Inc.Q4 19

1900 55th St Boulder 12,335 - - The Colorado Group, Inc.Q3 19

5311 Western Ave Boulder 12,303 Rowdy Mermaid Gibbons-White, Inc. Gibbons-White, Inc.Q3 19

1005 S 120th St Boulder County 11,600 - - Gibbons-White, Inc.Q2 19

385 S Pierce Ave Boulder County 11,491 - - -Q4 19

204 S Bowen St Longmont 8,985 - - The Colorado Group, Inc.Q3 19

1820 Industrial Cir Longmont 8,062 BZI, Inc. - Gibbons-White, Inc.Q3 19

21 S Sunset St Longmont 8,000 - - Summit Commercial Br…Q2 20

2907 55th St Boulder 7,300 Liberty Puzzles - LJD Enterprises IncQ1 20

5311 Western Ave Boulder 7,017 - - Gibbons-White, Inc.Q3 19

4820 N 63rd St Boulder 6,337 - - The Colorado Group, Inc.Q3 19

826-828 S Sherman St Longmont 6,250 - - The Colorado Group, Inc.Q4 19

260 Pearl St Boulder 5,698 - - The Colorado Group, Inc.Q4 19

3125 Sterling Cir Boulder 5,454 - - The Colorado Group, Inc.Q1 20

2400-2438 30th St Boulder 5,382 - - Boulder Valley Real Est…Q2 20



6420 Gunpark Dr Boulder 4,981 Gym Number Five LLC - Dean Callan & Compan…Q3 19

820-826 S Lincoln St Longmont 4,950 - - Sonenreich & Co.Q3 19

3063 Sterling Cir Boulder 4,853 - - The Colorado Group, Inc.Q1 20

5763 Arapahoe Ave Boulder 4,776 - - The Colorado Group, Inc.Q3 19

6880 Winchester Cir Boulder 4,679 - - Chrisman Commercial;…Q2 19

6201 Spine Rd Boulder 4,468 - - Gibbons-White, Inc.Q3 19

2480 49th St * Boulder 4,343 Boulder CrossFit - -Q3 19

6519 E Arapahoe Rd Boulder 4,050 - - Matrix Group, Inc.Q1 20

*Renewal


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RentBoulder Industrial

Due to an abrupt change in market conditions due to thecoronavirus outbreak, leasing activity, and rentalobservations by extension, are likely to be minimal in thenear term. Additionally, uncertainty surrounding financialmarkets are likely to keep many landlords, tenants, andtheir lenders on the sidelines until the virus is containedand stay-at-home orders are lifted. That being said,tenants in “critical businesses” could be looking toexpand during the crisis, as demand rises in consumerstaples.

After a record-setting year of rent growth 2018, annualgains noticeably decelerated last year. Despite this trend,rents in 2019 still grew well above their long term

average.

Over the past five years, industrial rents haveconsistently grown faster than the metro's historicalaverage, but slightly below the national average.

There are reasons for optimism in the long term outlook:The industrial vacancy rate was close to cycle lowsheading into 2020 and the flex vacancy rate at a cyclelow. Moreover, leasing at speculative development(namely in the CTC) was exceptional before thepandemic. With tight conditions and a demonstratedstrong response to new supply, landlords were holdingsolid pricing power when leases come to term.

MARKET RENT GROWTH (YOY)


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RentBoulder Industrial

MARKET RENT PER SQUARE FOOT


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ConstructionBoulder Industrial

The Colorado Governor's stay-at-home order considersjobs in the construction industry as “essential or critical”,which would allow developers to move forward withprojects if they choose. Deteriorating economicconditions could keep upcoming groundbreakings onhold, and speculative projects slated to deliver in 2020must grapple with the uncertainty of demand. Given theremarkable fluidity of the coronavirus outbreak, it is notout of the realm of possibility that construction jobs couldeventually lose their essential business designation.

In 2019, industrial deliveries in Boulder reached theirlowest point since 2015, and all of this new space was

leased by the end of the year. While this could be viewedas a positive given the current market conditions inducedby the coronavirus pandemic, there is supply pressurelooming. The amount of under construction space,roughly 750,000 SF, reached a cyclical high at the end of20Q1. Over 60% of that space was available for lease.

Four 100,000-plus SF projects are in the pipeline. AllenCompany has 165,000 SF and 133,000 SF underway inLouisville, and Etkin Johnson is building 146,000 SF and113,000 SF warehouses at its Louisville CorporateCampus.

DELIVERIES & DEMOLITIONS

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All Existing{0} 000 Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 Boulder County 5 394 78,8527.2% 2 32,67228 1

2 Longmont 2 78 39,000100% 1 25,68378 2

3 Boulder 0 - -- - 29,907- -

Totals 7 472 67,46622.5% 29,723106


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Under Construction PropertiesBoulder Industrial

7 472,260 3.2% 22.5%Properties Square Feet Percent of Inventory Preleased

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

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

Mar 2020725 Tech Ct

Louisville Corporate Ca…146,323 1 Jan 2021

Etkin Johnson Real Estate Partne…

Etkin Johnson Real Estate Partne…1

May 2019682 CTC Blvd

Building A133,556 1 Jun 2020

Allen Company Inc

Allen Company Inc2

Aug 2019Horizon Ave

Vista Buisness Park51,150 2 Mar 2021

-

Own It Storage Vista3

Aug 20191925 Pike Rd

Building C40,000 1 Sep 2020

-

West Rac Contracting Corp.4

Aug 20191925 Pike Rd

Building B38,000 1 May 2020

-

West Rac Contracting Corp.5

Oct 2019199 S Taylor Ave

Building 137,231 1 May 2020

-

Entasis Group6

Feb 20201376-1404 Horizon Ave

Sustainable Supply26,000 2 Aug 2020

-

Microg Lacoste7


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SalesBoulder Industrial

Boulder does not have a stock of large-scale distributioncenters that would attract the major institutional players.With a compelling demographic and tech-driveneconomic story, the metro nonetheless receivessignificant attention from mid-sized investors with anational scope,. Healthy investment interest drivescompetitive pricing: Out of roughly 300 metro areas withless than 50 million SF of industrial space, Boulder'smarket cap rate is in the lowest 10% of markets.

On the surface, sales volume in 2019 looked like it mayhave taken a step back, but investors remainedespecially active in the mid-tier range. For example, inNovember, Fred Alger & Company acquired 5360

Sterling Drive, a 3-Star, 38,000 SF flex building that wasrenovated into pure creative office space. The sale pricewas $15.5 million and Apple leases the entire propertyon a term that ends in mid-2026.

Another notable trade last year was Ivy Realty Servicesacquisition of 6150 Lookout Road from Etkin Johnson for$10.5 million ($208/SF). The building features a 16-footclear height, three dock high and 7 grade level doors.The building delivered in 1981 and the sellerimplemented a $2 million capital improvement plan afterit took over. The building is fully leased by First RF Corp,and the reported cap rate was near 7%.

SALES VOLUME & MARKET SALE PRICE PER SF


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Sales Past 12 MonthsBoulder Industrial

60 6.0% $197 6.8%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $433,750 $3,300,978 $2,473,735 $15,500,000

Price Per SF $62 $197 $168 $806

Cap Rate 5.2% 6.0% 5.9% 6.9%

Time Since Sale in Months 1.4 6.9 6.2 11.8

Property Attributes Low Average Median High

Building SF 1,800 17,014 17,087 50,472

Ceiling Height 10' 14'9" 14'10" 22'

Docks 0 1 0 7

Vacancy Rate At Sale 0% 6.8% 0% 100%

Year Built 1912 1979 1982 2009

Star Rating 2.1


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Sales Past 12 MonthsBoulder Industrial

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

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 5360 Sterling Dr2000 38,263 0% $15,500,000 $40511/22/2019 5.3%

-2 6150 Lookout Rd1981 50,472 0% $10,500,000 $2085/1/2019 6.9%

-3 View 571977 31,392 0% $9,950,000 $317

1855 S 57th Ct7/19/2019 -

-4 1821 Lefthand Cir1979 20,000 25.3% $7,400,000 $3701/8/2020 -

-5 2420 Trade Centre Ave1997 32,460 0% $5,234,172 $16110/29/2019 -

-6 5305 Sterling Dr1996 27,330 0% $4,978,626 $1828/26/2019 -

-7 2410 Trade Centre Ave1989 26,724 0% $4,489,936 $16810/29/2019 -

-8 2400 Trade Centre Ave1989 25,200 0% $4,152,951 $16510/29/2019 -

-9 2500 Trade Centre Ave1997 25,200 0% $3,922,941 $15610/29/2019 -

-10 National Semiconductor1988 24,588 0% $3,800,000 $155

1820 Lefthand Cir5/10/2019 -

-11 5300 Sterling Dr1983 20,832 95.5% $3,771,374 $1818/26/2019 -

-12 3210 Valmont Rd1975 10,932 0% $3,375,000 $3098/1/2019 -

-13 The Veris Bldg1997 17,087 0% $3,188,461 $187

6315 Monarch Park Pl9/30/2019 -

-14 1860 Lefthand Cir1983 19,200 0% $3,175,000 $16512/17/2019 -

-15 3131 N 75th St1962 18,866 0% $2,900,000 $1546/25/2019 -

-16 1831 Lefthand Cir1984 19,200 0% $2,900,000 $1517/10/2019 6.5%

-17 6123 Arapahoe Rd1967 21,000 0% $2,500,000 $1195/2/2019 -

-18 379 S Arthur Ave2005 14,989 0% $2,500,000 $16711/14/2019 -

-19 4820 N 63rd St1984 19,660 42.0% $2,447,470 $1241/28/2020 -

-20 270 S Taylor Ave1997 15,010 100% $2,400,000 $1606/21/2019 -


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EconomyBoulder Industrial

The coronavirus pandemic is having an unprecedentedimpact on the national economy. Jobless claims due toshutdowns are skyrocketing in nearly every metro acrossthe country. The state of the economy practically hingeson the mitigation efforts to slow the spread of the virus.We will be updating our analysis as more informationbecomes available. The current report largely reflects theenvironment before the pandemic.

Boulder has a dynamic economy, and job growth hasoutperformed the national benchmark for the virtualentirety of this current cycle. Total nonfarm payrollsexceed the prerecession peak by roughly 30,000,representing cumulative growth of about 20% since2010. Annual job gains have consistently remainedaround 3% in 2019, well above the national average.

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 held steadyin more affordable Northern Colorado metros. Greeley(Weld County) posted 3.5% population growth for asecond straight year in 2017, a cyclical high. Fort Collinssaw 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 of

residential building (and increasing lack of affordableoptions) in the city of Boulder itself.

Housing prices are a staggering 75% of the peak of thelast cycle. According to the Federal Housing FinanceAgency's All-Transactions House Price Index, homeprices have increased by more than 10% annually onaverage over the last five years, and have increased atan 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.

Amazon, Uber, and Twitter also have a presence in themetro, and the high tech backbone should continue to bean important source of high-paying job growth inBoulder. Of course, there's always the possibility of beingoverly exposed 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

-0.38%-0.04%1.02%2.71%-0.99%0.35%1.220Manufacturing

0.05%0.24%1.16%1.91%-0.74%-0.47%0.726Trade, Transportation and Utilities

0.01%0.21%0.72%1.40%-1.05%-1.59%0.817 Retail Trade

0.33%0.33%1.28%-0.24%0.77%-1.35%0.67Financial Activities

0.49%1.46%0.11%2.22%1.29%1.82%1.339Government

0.15%0.00%2.89%3.26%0.86%0.07%0.66Natural Resources, Mining and Construction

0.76%1.01%2.15%3.14%2.59%1.21%0.827Education and Health Services

0.61%0.72%2.58%3.50%1.17%5.25%1.439Professional and Business Services

0.30%0.11%0.56%-0.55%1.19%-3.48%2.28Information

0.99%1.20%2.20%1.93%-2.42%-4.53%1.020Leisure and Hospitality

-0.02%0.33%1.02%1.75%0.49%2.40%0.86Other Services

Total Employment 193 1.0 -2.19% -2.62% 2.01% 1.20% 1.30% 0.95%

Source: Oxford Economics

LQ = Location Quotient


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 329,310,594331,696 1.1% 0.5% 1.2% 0.7% 1.1% 0.5%

Households 122,106,773130,303 1.0% 0.4% 0.9% 0.7% 1.0% 0.4%

Median Household Income $64,711$87,282 2.9% 3.3% 3.4% 2.6% 2.7% 2.9%

Labor Force 164,149,516199,733 1.1% 0.7% 1.6% 0.7% 0.8% 0.4%

Unemployment 3.7%2.3% -0.7% -0.1% -0.5% -0.6% - -


POPULATION GROWTH


LABOR FORCE GROWTH INCOME GROWTH


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SubmarketsBoulder Industrial

BOULDER SUBMARKETS


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SubmarketsBoulder Industrial

SUBMARKET INVENTORY

12 Month Deliveries Under Construction

Bldgs SF (000) Percent Rank

Inventory

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

1 Boulder 11,454 41.2% 1 0 - - -383 0 0 0% -

2 Boulder County 10,096 36.3% 2 5 394 3.9% 1309 2 278 2.8% 1

3 Longmont 6,241 22.5% 3 2 78 1.2% 2243 0 0 0% -

SUBMARKET RENT

Growth

Market Rent

Per SFSubmarketNo.

12 Month Market Rent QTD Annualized Market Rent

RankRank GrowthRank

1 Boulder 0.2%1 2.9% 2$13.11 1

2 Boulder County 0%2 3.4% 1$11.30 2

3 Longmont -0.2%3 2.6% 3$9.78 3

SUBMARKET VACANCY & NET ABSORPTION

12 Month Absorption

Rank Construc. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Boulder 462,449 4.0% -66,045 0.6% 21

2 Boulder County 594,595 5.9% 0.7398,862 4.0% 12

3 Longmont 794,855 12.7% -22,109 0.4% 33


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Supply & Demand TrendsBoulder Industrial

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 323,814 1.1% 1.3%383,178 0.829,070,403

2023 324,614 1.1% 1.6%455,001 0.728,746,589

2022 213,377 0.8% 1.3%362,209 0.628,421,975

2021 204,751 0.7% 0.7%208,935 1.028,208,598

2020 491,342 1.8% 0.6%175,674 2.828,003,847

YTD 278,355 1.0% 0.2%69,406 4.027,790,860

2019 159,100 0.6% 1.9%526,419 0.327,512,505

2018 449,739 1.7% 1.6%430,640 1.027,353,405

2017 331,963 1.2% 1.1%285,395 1.226,903,666

2016 233,037 0.9% 2.3%613,810 0.426,571,703

2015 81,472 0.3% 0.2%45,058 1.826,338,666

2014 204,232 0.8% 2.9%771,241 0.326,257,194

2013 (83,691) -0.3% 0.3%89,108 -26,052,962

2012 (51,826) -0.2% 0.5%137,526 -26,136,653

2011 64,700 0.2% 0.6%156,938 0.426,188,479

2010 27,389 0.1% 2.0%514,283 0.126,123,779

2009 26,600 0.1% -0.6%(169,434) -26,096,390

2008 (1,388,327) -5.1% -0.4%(93,022) -26,069,790

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND



2024 0 0% 0.3%13,972 05,381,611

2023 0 0% 0.6%32,907 05,381,611

2022 0 0% 0.4%21,511 05,381,611

2021 0 0% -0.4%(22,743) -5,381,611

2020 0 0% 1.9%104,523 05,381,611

YTD 0 0% 2.9%154,933 05,381,611

2019 0 0% 1.9%101,328 05,381,611

2018 0 0% 0.2%12,613 05,381,611

2017 (4,034) -0.1% -1.2%(63,612) -5,381,611

2016 0 0% 0.9%50,838 05,385,645

2015 (192,115) -3.4% -3.2%(173,863) -5,385,645

2014 27,752 0.5% 4.8%265,528 0.15,577,760

2013 0 0% 1.1%59,637 05,550,008

2012 0 0% -0.4%(21,706) -5,550,008

2011 0 0% 2.8%153,476 05,550,008

2010 27,389 0.5% 3.0%167,957 0.25,550,008

2009 0 0% -5.5%(304,590) -5,522,619

2008 (1,700,000) -23.5% 0%792 -5,522,619


Page 19

Supply & Demand TrendsBoulder Industrial

LOGISTICS SUPPLY & DEMAND



2024 256,414 2.5% 2.5%268,120 1.010,572,651

2023 257,145 2.6% 2.8%285,263 0.910,316,237

2022 168,960 1.7% 2.3%227,442 0.710,059,092

2021 211,572 2.2% 2.0%194,435 1.19,890,132

2020 432,576 4.7% 2.2%211,916 2.09,678,560

YTD 278,355 3.0% -0.4%(38,514) -9,524,339

2019 128,100 1.4% 5.0%458,978 0.39,245,984

2018 246,950 2.8% 1.8%162,462 1.59,117,884

2017 154,429 1.8% -0.7%(65,098) -8,870,934

2016 1,775 0% 2.9%250,879 08,716,505

2015 59,137 0.7% -1.0%(90,153) -8,714,730

2014 64,000 0.7% 3.0%255,421 0.38,655,593

2013 (47,428) -0.5% -0.2%(20,259) -8,591,593

2012 (26,069) -0.3% 1.8%155,290 -8,639,021

2011 64,700 0.8% 2.0%173,474 0.48,665,090

2010 0 0% 1.7%150,109 08,600,390

2009 5,000 0.1% 0.3%26,723 0.28,600,390

2008 68,959 0.8% 2.7%231,052 0.38,595,390

FLEX SUPPLY & DEMAND



2024 67,400 0.5% 0.8%101,086 0.713,116,141

2023 67,469 0.5% 1.0%136,831 0.513,048,741

2022 44,417 0.3% 0.9%113,256 0.412,981,272

2021 (6,821) -0.1% 0.3%37,243 -12,936,855

2020 58,766 0.5% -1.1%(140,765) -12,943,676

YTD 0 0% -0.4%(47,013) -12,884,910

2019 31,000 0.2% -0.3%(33,887) -12,884,910

2018 202,789 1.6% 2.0%255,565 0.812,853,910

2017 181,568 1.5% 3.3%414,105 0.412,651,121

2016 231,262 1.9% 2.5%312,093 0.712,469,553

2015 214,450 1.8% 2.5%309,074 0.712,238,291

2014 112,480 0.9% 2.1%250,292 0.412,023,841

2013 (36,263) -0.3% 0.4%49,730 -11,911,361

2012 (25,757) -0.2% 0%3,942 -11,947,624

2011 0 0% -1.4%(170,012) -11,973,381

2010 0 0% 1.6%196,217 011,973,381

2009 21,600 0.2% 0.9%108,433 0.211,973,381

2008 242,714 2.1% -2.7%(324,866) -11,951,781


Page 20

Rent & VacancyBoulder Industrial

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 140 2.3% 7.8%$12.57 1,619,071 5.6% -0.3%

2023 137 2.1% 5.4%$12.28 1,677,963 5.8% -0.5%

2022 134 3.5% 3.2%$12.03 1,807,602 6.4% -0.6%

2021 130 8.5% -0.3%$11.62 1,955,537 6.9% -0.1%

2020 120 -8.1% -8.1%$10.72 1,959,070 7.0% 1.0%

YTD 131 0.3% 0.3%$11.69 1,851,899 6.7% 0.7%

2019 130 4.3% 0%$11.66 1,642,950 6.0% -1.4%

2018 125 6.1% -4.1%$11.18 2,010,269 7.3% -0.1%

2017 118 4.1% -9.6%$10.53 1,991,170 7.4% 0.1%

2016 113 3.9% -13.2%$10.12 1,936,967 7.3% -1.5%

2015 109 4.3% -16.5%$9.73 2,325,375 8.8% 0.1%

2014 104 4.5% -19.9%$9.34 2,279,811 8.7% -2.2%

2013 100 2.7% -23.4%$8.93 2,846,820 10.9% -0.6%

2012 97 1.4% -25.4%$8.70 3,019,619 11.6% -0.7%

2011 96 0.3% -26.5%$8.57 3,208,971 12.3% -0.4%

2010 95 -2.4% -26.7%$8.54 3,301,209 12.6% -1.9%

2009 98 -2.2% -24.9%$8.75 3,788,103 14.5% 0.7%

2008 100 0.8% -23.2%$8.95 3,592,069 13.8% -4.0%

SPECIALIZED INDUSTRIAL RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 146 2.6% 8.5%$11.23 86,602 1.6% -0.3%

2023 142 2.4% 5.7%$10.94 100,574 1.9% -0.6%

2022 139 3.8% 3.2%$10.68 133,481 2.5% -0.4%

2021 134 8.8% -0.5%$10.29 154,992 2.9% 0.4%

2020 123 -8.6% -8.6%$9.46 132,249 2.5% -1.9%

YTD 134 -0.4% -0.4%$10.31 81,839 1.5% -2.9%

2019 134 2.2% 0%$10.35 236,772 4.4% -1.9%

2018 132 7.1% -2.1%$10.13 338,100 6.3% -0.2%

2017 123 5.3% -8.7%$9.45 350,713 6.5% 1.1%

2016 117 3.9% -13.3%$8.97 291,135 5.4% -0.9%

2015 112 3.4% -16.6%$8.63 341,973 6.3% -0.1%

2014 109 5.6% -19.3%$8.35 360,225 6.5% -4.3%

2013 103 2.9% -23.6%$7.90 598,001 10.8% -1.1%

2012 100 2.4% -25.7%$7.68 657,638 11.8% 0.4%

2011 97 0.6% -27.5%$7.50 635,932 11.5% -2.8%

2010 97 -2.2% -27.9%$7.46 789,408 14.2% -2.6%

2009 99 -0.9% -26.3%$7.63 929,976 16.8% 5.5%

2008 100 2.7% -25.6%$7.70 625,386 11.3% -20.9%


Page 21

Rent & VacancyBoulder Industrial

LOGISTICS RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 143 2.4% 8.0%$11.34 417,439 3.9% -0.2%

2023 139 2.2% 5.4%$11.08 428,632 4.2% -0.4%

2022 136 3.6% 3.2%$10.84 456,252 4.5% -0.7%

2021 132 8.6% -0.4%$10.47 514,235 5.2% 0.1%

2020 121 -8.3% -8.3%$9.64 496,773 5.1% 2.1%

YTD 132 0% 0%$10.50 592,712 6.2% 3.2%

2019 132 3.3% 0%$10.51 275,843 3.0% -3.7%

2018 128 6.1% -3.2%$10.17 606,721 6.7% 0.8%

2017 121 4.0% -8.7%$9.59 522,233 5.9% 2.4%

2016 116 3.2% -12.3%$9.22 302,706 3.5% -2.9%

2015 112 4.3% -14.9%$8.94 551,810 6.3% 1.8%

2014 108 5.4% -18.4%$8.57 393,370 4.5% -2.3%

2013 102 4.1% -22.6%$8.13 584,791 6.8% -0.3%

2012 98 2.6% -25.7%$7.81 611,960 7.1% -2.1%

2011 96 0.9% -27.5%$7.61 793,319 9.2% -1.3%

2010 95 -2.3% -28.2%$7.54 902,093 10.5% -1.7%

2009 97 -2.9% -26.5%$7.72 1,052,202 12.2% -0.3%

2008 100 0.4% -24.4%$7.95 1,073,925 12.5% -2.0%

FLEX RENT & VACANCY

Market Rent


Vacancy

SF Percent Ppts Chg

2024 137 2.2% 7.5%$14.07 1,115,030 8.5% -0.3%

2023 134 2.0% 5.2%$13.77 1,148,757 8.8% -0.6%

2022 132 3.3% 3.2%$13.50 1,217,869 9.4% -0.6%

2021 128 8.3% -0.1%$13.07 1,286,310 9.9% -0.3%

2020 118 -7.8% -7.8%$12.06 1,330,048 10.3% 1.5%

YTD 129 0.7% 0.7%$13.18 1,177,348 9.1% 0.4%

2019 128 5.7% 0%$13.08 1,130,335 8.8% 0.5%

2018 121 5.7% -5.4%$12.38 1,065,448 8.3% -0.6%

2017 114 3.8% -10.5%$11.71 1,118,224 8.8% -1.9%

2016 110 4.4% -13.8%$11.28 1,343,126 10.8% -0.9%

2015 105 4.5% -17.4%$10.80 1,431,592 11.7% -1.0%

2014 101 3.7% -21.0%$10.33 1,526,216 12.7% -1.3%

2013 97 1.8% -23.8%$9.97 1,664,028 14.0% -0.7%

2012 96 0.5% -25.1%$9.80 1,750,021 14.6% -0.2%

2011 95 -0.1% -25.5%$9.75 1,779,720 14.9% 1.4%

2010 95 -2.4% -25.4%$9.76 1,609,708 13.4% -1.6%

2009 98 -2.3% -23.5%$10.01 1,805,925 15.1% -0.8%

2008 100 0.4% -21.7%$10.24 1,892,758 15.8% 4.5%


Page 22

Sale TrendsBoulder Industrial

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 201- $196.16 6.7%

2023 -- - -- 197- $191.84 6.7%

2022 -- - -- 190- $185.39 6.7%

2021 -- - -- 176- $171.60 7.0%

2020 -- - -- 175- $170.45 7.0%

YTD $16.4M9 0.3% $171.96$2,187,679 194- $189.32 6.5%

2019 $187.7M75 6.3% $121.03$3,712,819 1896.4% $184.49 6.5%

2018 $255.6M47 7.0% $141.89$7,085,793 1767.3% $171.33 6.6%

2017 $337.6M88 13.0% $101.91$4,603,907 1597.3% $155.24 6.7%

2016 $131.7M49 7.3% $79.44$3,505,387 1467.4% $142.38 6.9%

2015 $132.7M46 5.7% $97.91$3,447,549 1358.0% $131.62 7.1%

2014 $157.5M72 7.2% $89.07$3,072,077 1227.7% $118.82 7.5%

2013 $39.2M44 3.9% $73.10$1,371,361 1127.8% $108.87 7.7%

2012 $79.6M54 5.8% $56.33$1,844,950 1067.3% $103.16 7.9%

2011 $92.6M47 5.1% $72.67$2,618,555 10111.4% $98.15 8.2%

2010 $47.3M23 2.1% $86.26$3,040,227 97- $94.15 8.4%

2009 $22.6M20 1.2% $84.51$1,636,077 927.9% $89.27 8.8%

(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.

SPECIALIZED INDUSTRIAL SALES





2024 -- - -- 201- $170.40 6.8%

2023 -- - -- 195- $166.13 6.8%

2022 -- - -- 188- $160.07 6.9%

2021 -- - -- 174- $147.83 7.2%

2020 -- - -- 172- $146.41 7.2%

YTD $10.6M3 1.0% $197.24$3,517,510 191- $162.18 6.6%

2019 $37.3M9 7.7% $94.52$4,667,348 1896.1% $160.87 6.6%

2018 $11.2M8 6.6% $35.71$2,793,966 1766.4% $149.75 6.7%

2017 $54M16 13.3% $78.30$4,153,985 1598.2% $135.20 6.9%

2016 $32.9M11 8.9% $70.32$4,112,745 1468.4% $123.78 7.1%

2015 $23.6M11 5.2% $91.65$2,364,053 135- $114.32 7.3%

2014 $19.9M14 9.5% $40.08$1,990,383 121- $103.11 7.6%

2013 $14.3M6 5.9% $82.03$2,854,680 1116.9% $94.37 7.9%

2012 $7.6M4 2.5% $53.90$2,411,370 105- $89.28 8.1%

2011 $24.9M13 7.0% $70.42$2,766,946 10113.0% $85.43 8.3%

2010 $6.1M5 1.3% $98.70$5,456,100 97- $82.60 8.5%

2009 $3.2M4 0.5% $112.64$798,500 92- $78.23 8.9%




Page 23

Sale TrendsBoulder Industrial

LOGISTICS SALES





2024 -- - -- 206- $194.10 6.5%

2023 -- - -- 201- $189.77 6.5%

2022 -- - -- 194- $183.30 6.6%

2021 -- - -- 179- $169.35 6.9%

2020 -- - -- 178- $168.07 6.9%

YTD $2.5M4 0.2% $136.35$714,375 198- $186.88 6.3%

2019 $52.8M27 5.3% $130.79$2,891,488 1926.8% $181.47 6.3%

2018 $51.7M19 4.4% $150.37$3,933,694 1787.8% $168.41 6.4%

2017 $30.7M21 4.1% $120.94$2,339,093 1616.3% $152.05 6.6%

2016 $32.7M19 4.9% $91.63$2,130,873 148- $139.89 6.8%

2015 $21.7M14 2.8% $87.42$1,548,324 137- $129.53 7.0%

2014 $36.8M30 6.1% $80.11$1,632,439 1237.3% $116.54 7.3%

2013 $14.3M25 4.8% $76.24$865,076 1128.4% $105.56 7.6%

2012 $27.5M20 4.6% $74.33$1,776,518 106- $99.93 7.8%

2011 $11.1M15 3.2% $44.05$1,307,542 1019.8% $95.04 8.1%

2010 $17.6M12 3.0% $68.47$1,718,956 96- $91.04 8.4%

2009 $9.5M11 1.9% $65.69$1,247,143 917.5% $86.25 8.8%



FLEX SALES





2024 -- - -- 198- $208.46 6.8%

2023 -- - -- 194- $204.11 6.7%

2022 -- - -- 188- $197.52 6.8%

2021 -- - -- 174- $183.21 7.1%

2020 -- - -- 173- $182.27 7.1%

YTD $3.3M2 0.2% $142.35$1,666,235 193- $202.47 6.5%

2019 $97.6M39 6.3% $129.72$3,976,419 1876.2% $196.62 6.6%

2018 $192.8M20 8.9% $168.37$10,146,034 1747.3% $182.54 6.6%

2017 $252.9M51 19.2% $106.75$5,354,792 1587.0% $166.01 6.8%

2016 $66.2M19 8.2% $79.34$4,631,019 1456.8% $152.03 7.0%

2015 $87.4M21 7.9% $102.87$6,120,701 1348.0% $140.42 7.2%

2014 $100.8M28 7.0% $124.12$5,432,576 1218.1% $127.10 7.5%

2013 $10.5M13 2.4% $60.73$1,267,000 112- $117.43 7.7%

2012 $44.5M30 8.2% $49.32$1,816,917 1067.3% $111.41 7.9%

2011 $56.7M19 5.6% $84.61$3,127,032 101- $105.83 8.2%

2010 $23.6M6 1.9% $102.80$5,739,438 96- $101.34 8.5%

2009 $9.8M5 0.9% $105.18$4,672,500 918.3% $96.17 8.9%




Page 24

boulder q1 2020 - unique properties...apr 22, 2020 · 555 aspen ridge dr boulder county 38,000 q1...

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