Colorado has been making comfortable gains in the commercial real estate market with Denver leading the way. As some businesses failed during pandemic years, others thrived. Accounting for ripple effects felt in some states, many businesses expanded and moved to Colorado. The Denver Gazette puts Denver office market among the top recovering in the country.
Colorado has an incentive program explained in the Colorado Sun where, “The state offers tax credits to companies that move their headquarters or expand to Colorado. But they can only cash in if they hire a set number of new workers at pay equal to or greater than an area’s average annual wage. Job Growth Incentive Tax Credit incentives fell in 2020, but awards through the program are back up to pre-pandemic levels. And more companies that go through the process are picking the state, according to data from the Office of Economic Development and International Trade.”
If you want to view the data from 2018-2021 on Colorado’s job growth incentive program, go here. and also available is a chart explaining what matters most in site selection location criteria.
Investopedia outlines some key takeaways regarding commercial properties listed below:
• Commercial real estate refers to properties used specifically for business or income-generating purposes.
• The four main classes of commercial real estate include office space, industrial, multi-family rentals, and retail.
• Commercial real estate provides rental income as well as the potential for some capital appreciation for investors.
• Investing in commercial real estate usually requires more sophistication and larger amounts of capital from investors than does residential real estate.
• Publicly traded real estate investment trusts (REITs) are a feasible way for individuals to indirectly invest in commercial real estate.
Do Business Here!
In an encouraging call-out “Do business here,” the Metro Denver EDC provides extensive services to help site selectors and companies with location, expansion, and market decisions. They list an impressive list of major relocations and expansions impacting economic development.
Built in Colorado acknowledges that, “Although most tech companies are remote-friendly, companies still find it beneficial to have a physical office space for employees who want to socialize and collaborate.”
KDVR reports that, “California-based companies are moving out of the state at an accelerating rate this year, a report by the Hoover Institution at Stanford University found.
The report, published in August 2021, said California already lost a total of 74 headquarters just in the first six months of the year. Compare that to the 62 total companies that were known to have relocated from California in the entirety of 2020, and it’s no wonder why the Hoover Institution is calling it a “serious loss.”
Moving forward, while dealing with the effects of the pandemic, new challenges have emerged in the form of rising inflation and a demanding residential real estate market. The major exciting news is that Denver continues to be a preferred choice for businesses seeking top choices that will enable them to relocate and expand.
“The Mile High City’s appeal includes its large pool of tech workers and ranks third as the most concentrated market for millennials that brings, “youth, new jobs, and energy to the city.”
With this concentrated data it’s no wonder that there has been such a huge influx of companies moving to Denver while others expand their footprint.
All of this commercial growth is not isolated to tech only, “as big-box warehouses keep getting bigger as e-commerce groups, third-party logistics firms and others are on the hunt for the distribution and manufacturing facilities they can find or build,” reports Biz Journals.
Trust the Katchen Company Team
Katchen Company’s team of specialists studies every aspect of the products they represent. Whether specializing in one product type or representing the full ranges of real estate, our specialists have comprehensive knowledge of construction methods, materials, and designs. This expertise helps our specialists determine if a property is being marketed at a fair price.
The commercial real estate market is quite often highly competitive and challenging. Our brokers bring years of experience to the table in order to skillfully navigate through the complexities. At Katchen Company, our team of tech savvy specialists are prepared to resolve any problems that crop up during negotiations and inspections as well as those that occur after the purchase. Whether you need to sell or lease a commercial property or if you are in the market to purchase or rent, our team of professional, dedicated brokers are ready to assist. We open doors and provide real solutions for our commercial real estate clients.
*Testimony From Dean Rotbart – Radio Host, seller
“In a tough commercial market, Ed overcame multiple obstacles to find a quality buyer…personal attention made the difference…previously used…BIG NAME…agents…Ed got the job done when others wouldn’t/couldn’t.”