What is getting done!
By Jason P. Kruse, CCIM – Managing Broker at The Colorado Group, Inc.
The Boulder office market shows signs of life, with most lease transactions being under 5,000 square feet. Landlords that have “turnkey” spaces and landlords that are willing to spend money on tenant improvements are finding success in landing tenants. Most of the demand comes from office tenants with leases expiring and tenants who are expanding. While the headwinds of the economy and upcoming election continue to be major decision factors, the office market continues to be improving. The market is dictating that landlords be creative in attracting tenants. Some examples of this creativity are landlords providing a clear path to a transaction by determining the tenant’s needs and providing a space plan to accommodate these needs. Secondly, landlords who can execute on the tenant’s timeline are more able to manage leases. The permitting process in Boulder has improved, which is helping both landlords and their prospective tenants. The Boulder market is also attracting companies that place importance on being able to compete and secure a capable workforce.
Fast facts:
*In the last 12 months, there have been over 13 transactions in excess of 10,000 square feet
*There are approximately 34 office properties in excess of 5,000 square feet that are currently for sale
*There are over 85 spaces for lease between 1,000 and 2,000 square feet
*Counselors are one of the most active industries in the office market
In conclusion, the office market is not out of the woods, and the path to stability remains long; there are signs of life.
Amazon is requiring workers to be in the office five days a week starting next year