X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-In the late 1980s, when the city’s commercial real estate market was battered, many investors redlined the Mile High City and refused to invest here. Not this time.

Although the market is limping through its worst period in the past 15 years, in 2003 investors snapped up properties to the tune of $1.117 billion, about 13% more than the $986 million they purchased last year, according to Denver commercial real estate veteran Brad Neiman.

Neiman, an investment specialist, has been tracking the market for the past 20 years. His report shows 103 office, retail and industrial properties of at least $1 million each closed this year. That compared with 117 sales last year.

“Job growth in Colorado for the past two years has been flat, but now predictions for 2004 are 1.5% growth with expansion in all sectors,” Neiman tells GlobeSt.com. “That’s not terrific, but we’ll take it.”

Especially since office vacancy rates are hovering around 20% and industrial vacancy rates are around 10%.

“But, investors in real estate have come charging into Denver to snap up office, retail and industrial properties,” Neiman tells GlobeSt.com. “Investors seeking safety from the stock market looked for single tenant buildings and grocery anchored retail investors. Other investors, seeking opportunity from an improved market still years away, bought empty buildings and partially occupied multi-tenant buildings.”

In all, “2003 was a surprisingly good year for the investment property market,” Neiman says. He notes for the past seven years, last year was the only one that didn’t exceed $1 billion in sales.”

Chicago-based Equity Office Properties’ $80.2-million purchase for the 489,000-sf US Bank Tower building was the single largest sale of the year, and the only CBD sale.

The locally based Pauls Corp., headed by Bill Pauls, paid $61.7 million for Glenborough Properties’ portfolio in Gateway, a large business park near Denver International Airport. Neiman says that Glenborough is exiting the metro market so sold its 1.3-million-sf portfolio back to Pauls, the original developer.

“And there was one record set,” Neiman tells GlobeSt.com. He notes that Australia’s Challenger International Group paid $57.8 million for the Invesco buildings in the Denver Tech Center West. The sales price equates to $218 per sf, the most paid for an office building along the southeast corridor.

But overall, 2003 was not a record year.”But it certainly was one with lots of positive characteristics,” Neiman tells GlobeSt.com. “If it did nothing else, it was a confirmation of the high regard by real estate investors for Denver properties.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.