"The concern was the market started to seize up, and that’s why we saw the Fed make not only a reduction in Fed funds and a commitment to buy mortgage-backed securities and treasuries but there was a concern that there was starting to be fear dominating the markets in such a way we were not seeing. That normal connection between treasuries and stock market or bonds to stock market was not correlating … so you were seeing mortgages go down and treasury rates go up,” said Gerard Nalezny, CEO and chairman of Verus Bank of Commerce in Fort Collins. Fears surrounding coronavirus have impacted more than just the toilet-paper supply across the country. The stock market continues to drop on fears of a potential global recession and the Federal Reserve’s response over the weekend — cutting interest rates by a full percentage point — was an attempt to bring markets back into sync.
The Federal Reserve’s decision to spend $700 billion to jump start markets was in direct relation to rates starting to go up. “That’s not what the Fed wants under the circumstances, a slowing growth scenario. You don’t want rates to go up, you want them to go down,” he said.
It is a great time to be in mortgage banking, he added, because those lenders make their money off volume and right now mortgage rates are the lowest they’ve been in 40 years so “there’s a glut of refinance activity going on,” Nalezny said.
Dan Page, president of Boulder Equity Partners, said that everything is in flux right now. There is starting to be a contraction of the loan-to-value ratio and the amount on which commercial mortgage lenders are willing to lend. Typically, a lender might lend up to 75 percent of a property’s value but “if there is a fear that property values may contract, lenders will be pulling back on the amount they are willing to lend, the percent of the property value they are willing to lend. We have already seen that beginning to happen,” he said.
The amount of cash reserves available will also go up. “When you make a loan, typically you want to see that a borrower has a certain amount of cash available to make payments on loans. Those numbers are going to expand and will require a little more money out of fear of the economy contracting,” Page added.
On the upside, Page said he hasn’t seen any lenders pulling back or being unwilling to lend. They are “just being cautious and understandably so,” he said. “At a time like this where business owners, commercial property owners might need to shore up their cap reserves to accommodate a slowdown in their business, being able to pull cash out of their real estate is going to be the cheapest money available, compared to small business loans or unsecured loans. I think we are likely to see an uptick of people leveraging their equity in commercial real estate to weather out the tough times.”
Restaurants and hotels are the hardest hit asset classes currently, with some lenders having a 30-day hiatus on being willing to lend to those types of properties, Page said.
He said that if he were a small business owner who owns a business or commercial property, he would consider refinancing right now to pull equity out of the property to be able to weather those storms.
Jamie Woodwell, vice president of commercial real estate research for the Mortgage Bankers Association, said that coronavirus fears started to creep into the industry two weeks ago when financial and capital markets shifted from viewing the virus as something outside of the United States that could disrupt supply lines to the potential impacts here at home now that the virus has made an appearance.
“A week ago, we saw oil disruptions added to those concerns and oil prices dropping pretty significantly and that raised another set of concerns for the markets broadly,” Woodwell said. The Fed stepped in and cut rates and then on Sunday, cut rates again.
“It is an incredibly fast-moving environment in the U.S. and that is impacting commercial real estate finance just as it is impacting other parts of the market. Lenders and originators and services are all working through this time in real time to look at what is happening in capital and property markets and make sure they are responding appropriately,” he said.
On the commercial real estate finance side, there are many different capital sources. Mortgages can come from life insurance companies, banks, government lenders such as Fannie Mae and Freddie Mac and each is tied differently to the capital markets so each one is responding a little bit differently as well, he said. The situation is also unfolding in different ways in different metropolitan areas, which adds an additional layer of uncertainty for the market.
Page said that the other side of the funding coin is institutional money. He believes with the hits the stock market has taken over the past couple of weeks, many institutional investors will turn to more solid assets such as real estate.
“Real estate is historically a safer investment,” he said. If there ends up being more competition for that money, rates could go lower because there is more competition on those loans, he said. And that response would have very little to do with Fed fund rates.
Over the past couple of weeks, the commercial mortgage-backed security market has seen investors in CMBS bonds increasing the spreads they needed to be paid between the 10-year Treasury, which is a risk-free rate, and the MBS bond. “They were really requiring higher spreads to invest in those bonds,” Woodwell said.
The Fed’s decision to lower interest rates for the second time in the past couple of weeks, and its commitment to buy $700 billion in treasuries and mortgage-backed securities, will ensure that these get paid off sooner and then new bonds can be issued, Nalezny said.
Nathan Klein, partner and commercial brokerage manager for LC Real Estate Group LLC in Loveland, said that there has been “no obvious direct impact” on his business because of coronavirus. “I think what we’re hearing is that our tenants and clients, everyone is just trying to figure out the best way to go. Because there’s not a local outbreak really, we have one case and a couple in Weld County, as far as locals are concerned, everyone is just trying to be prudent and responsible.”
He said that his company’s retail clients will be the most directly affected in the short-term because people aren’t going to restaurants or taking their children to various service providers. On the office and industrial side, so far everyone is still in business and moving forward, he said.
Interest rates “are tremendous. I know we’ve encouraged our clients to talk to their banks and look for opportunities for savings,” Klein said.
He believes that the commercial side of the real estate market won’t begin to experience problems for another couple of months.
“It will depend on whether this is a short-term blip or a long-term impact,” Klein said. He said that coronavirus happening when it did, during spring break, when many people were already planning to travel and be out of the office, was good timing because it will have less of an impact in the short-term.
Klein said the most interesting thing to come out of coronavirus for his business has been putting force majeure clauses in the company’s development contracts. That means that if the City Council gets canceled because of the virus and contracts can’t get approved, the contracts themselves won’t be canceled.
“We’ve never had a contract with a force majeure clause tied to a specific virus before,” he said. But it makes sense since any projects requiring public hearings are going to be delayed in the current climate.
Commercial Real Estate Remains Strong
The summer is always good for real estate markets – both commercial and residential. There is definitely reason for caution, as this summer doesn’t forecast to by “typical” by any stretch of the imagination. However, Northern Colorado has proven to have robust commercial real estate that has been growing much faster than other parts of the county.
This makes 2020 still an attractive time to buy commercial real estate, and much like speculation on the stock market, it may even be a good time for investors to find diamonds in the rough. There may be a lot of weariness in the market that could result in less offers and interest on otherwise great investments. It’s no secret that Northern Colorado is growing in both population and cost. Population seems to be outpacing cost recently, which means we may yet see rising cost to catch up with increasing population in cities like Windsor, Loveland, and Johnstown.
Even if you aren’t looking to make a buying decision at this moment, or your portfolio doesn’t allow for it, it is still a fantastic time to be exploring opportunities for future growth and long-term real estate investments in Northern Colorado!
The Front Range is Growing
If you’ve been paying attention, it’s not hard to realize that the Front Range in Colorado is growing. However, it may be surprising to know exactly how fast it is growing. One stat that we love is that six of the top ten fastest growing cities are on the Front Range. Johnstown is notable among these cities with over 60% population growth in the five years between 2012 and 2017.
Large-scare commercial developments only look to continue this trend up and down the Front Range, from Timnath and Windsor to Johnstown and Erie.
Northern Colorado Retail for Sale
Warehouse Condos, Fort Collins
1331 Red Cedar Circle, Fort Collins, CO 80524
Sale Price: $4,103,344
Price/SF: $138.23
Total SF: 29,684
Cap Rate: -
Listing Office: NAI Affinity
Overview
Large warehouse condos for sale or lease in north Fort Collins, located just one block east of College Avenue (Highway 287). Location provides quick access to Downtown Fort Collins and minutes to Interstate 25. The building is equipped with 3 dock-high doors, 4 grade level overhead doors, functional clear span and clear height. Nearby businesses and amenities include: King Soopers, Jax Outdoor Gear, numerous restaurants, retailers and automotive services, breweries such as New Belgium Brewing Co., Odell Brewing Co., Red Truck Brewing Co., the Poudre River Trail and more.
Greeley Warehouse Space
Greeley, CO 80634
Sale Price: $7,995,000
Price/SF: $133.41
Total SF: 59,926
Year Built: 1989
Cap Rate: -
Listing Office: B&B Local Construction, LLC
Overview
Large warehouse available in northwest Greeley.
Loveland Class C Warehouse Building
Loveland, CO 80537
Sale Price: $6,925,000
Price/SF: $125.00
Total SF: 55,400 SF
Year Built: 1995, Renovated in 2008
Cap Rate: -
Listing Office: CBRE
Overview
Warehouse space available in the heart of east Loveland, quick access to both Highway 34 and I-25 for visibility and commuting!
For more information regarding the above retail opportunities or LC Real Estate Group retail listings, please contact Nathan Klein (970) 667-7000 x102 or Jerico Devlin (970) 667-7000 x109 . Search Retail Space For Lease in Fort Collins, Loveland, Greeley, and more using our search tool (https://lcrealestategroup.com/commercial-real-estate)
Commercial Property Leasing Northern Colorado
For many businesses in Northern Colorado, there is a lot of uncertainty with the coronavirus sweeping the nation and uncertainty at what the future holds for small businesses. This has potential to cause some ripples into the commercial real estate sector as well, as some business owners may be hesitant to commit to leasing property.
The reality is, however, that vacancy rates remain extremely low here in Northern Colorado. This includes all of the cities up and down the Front Range, including Fort Collins, Loveland, Greeley, Windsor, and Johnstown, among others. There’s no indication that the current situation will have an effect on population growth and migration. Even if these trends are put on hold, they remain just that: trends. Growth should continue to remain high in Northern Colorado when it comes to population and commercial real estate.
As we have mentioned before, much of the commercial inventory in Fort Collins is brought on by technology and manufacturing companies, but retail could see opening heading into the summer of 2020. We have stressed that you should be flexible with the location of your business as inventory remains tight, but there should be plenty of opportunity in different cities throughout the remainder of the year.
Commercial Growth in Northern Colorado
Northern Colorado remains a hotbed for commercial growth and residential growth alike. Development continues into the summer of 2020, with new commercial developments in Fort Collins, Johnstown, Loveland, and Windsor. The entire I-25 corridor is growing, and it’s growing fast. If you’re an investor looking to buy commercial real estate, there’s no reason not to be considering buying right now.
In terms of leasing, rates have been steadily rising, though there may be some leveling with the uncertainty surrounding small business operation across Northern Colorado (and the nation as a whole). In terms of future planning, Loveland, Windsor, and other smaller areas like Berthoud and Timnath are intriguing areas to consider – with new growth plans popping up all the time.
Northern Colorado Industrial Properties for Lease
Greeley Industrial Park
1st Avenue & HWY 34, Greeley, CO
Lease Rate: $13.00/NNN
Sq. Ft. Available: 1,500 – 54,000 SF
Available: Now
Primary Leasing: Realtec Commercial Real Estate Services
Overview
Located on 20th St in Greeley, CO – this office space is located in the heart of Greeley. Many nearby residential and commercial districts, including Aims Community College, and Highway 34.
Loveland Class B Industrial
TBD Viking Way
Lease Rate: Variable
Sq. Ft. Available: 15,000 – 122,807 SF
Available: October - December 2021
Primary Leasing: CBRE
Overview
This proposed industrial park has three available buildings with any amount of space that is needed. Located in the heart of Loveland, CO with easy commuting access.
Fort Collins Class A Industrial
4015 John Deere Dr, Fort Collins, CO 80524
Lease Rate: $12.00/NNN
Sq. Ft. Available: 15,000 SF
Available: October 2020
Primary Leasing: The Group, Inc.
Overview
This industrial building is located just off the I-25 corridor in North Fort Collins, perfect for small business with access to 3 exterior loading docks and ample square footage.
For more information regarding the above retail opportunities or LC Real Estate Group retail listings, please contact Nathan Klein (970) 667-7000 x102 or Jerico Devlin (970) 667-7000 x109 . Search Retail Space For Lease in Fort Collins, Loveland, Greeley, and more using our search tool (https://lcrealestategroup.com/commercial-real-estate)
Leasing Commercial Property in Northern Colorado
If you’re a business looking to lease office or retail space in Northern Colorado, it may be time to consider acting. Vacancy rates with commercial properties in Fort Collins and other cities on the Front Range remain at historic lows. Combined with population growth that is higher than the national average, and you have a recipe for a very competitive commercial leasing market!
While growth rates remain high, leasing costs are not rising quite as fast in Fort Collins, Loveland, and Windsor. Much of the new growth in Fort Collins is being gobbled up by technology and manufacturing companies – but retail might some availability as we head into the summer of 2020.
Fort Collins inventory remains tight, but there are still a lot of new commercial developments going up in Northern Colorado. If you are flexible with the location of your business, you might want to look in surrounding areas such as Loveland, Greeley, and even as far south as Johnstown. New developments and growth are creating a lot of leasing opportunities at potentially lower costs than Fort Collins.
Financial Health of Northern Colorado
Most of us that live here in Northern Colorado are well aware that the area is growing extremely fast, both in population and residential/commercial developments. As we have mentioned before, there are a lot of new commercial developments in Fort Collins, including the Foothills Mall in Fort Collins, the Johnstown Plaza, and areas around the Centerra-submarket at the intersection of I-25 and US 34.
If you’re not quite ready for your business to make a move, or you’re planning on starting a business in 2021, keep an eye on Windsor and Loveland. Both cities are set to undertake large commercial developments in the next couple of years, and may be suitable places to find commercial property to lease – either in new spaces or spaces vacated by businesses that are upgrading.
Northern Colorado Retail Properties for Lease
Greeley Class B Office Space
5124 20th St Greeley, CO 80634
Lease Rate: $19.00/NNN
Sq. Ft. Available: 5,100 SF
Available: September 2020
Primary Leasing: Wheeler Properties, Inc
Overview
Located on 20th St in Greeley, CO – this office space is located in the heart of Greeley. Many nearby residential and commercial districts, including Aims Community College, and Highway 34.
Loveland Class B Office
4065 St. Cloud Dr, Loveland, CO 80538
Lease Rate: $21.00/NNN
Sq. Ft. Available: 1,977 – 2,057 SF
Available: June 2020
Primary Leasing: Cushman & Wakefield
Overview
Up to 4 office spaces available in this new Loveland office development. Located just off the I-25/US 34 intersection with high visibility and easy access to commuting from anywhere on the Front Range.
Fort Collins Class A Office
221 E Mountain Ave, Fort Collins, CO 80524
Lease Rate: $24.00/NNN
Sq. Ft. Available: 3,000 – 16,311 SF
Available: August 2020
Primary Leasing: CBRE
Overview
This proposed office space is right in the heart of Old Town Fort Collins on Mountain Ave. Visibility and access to this office couldn’t be better in Fort Collins!
For more information regarding the above retail opportunities or LC Real Estate Group retail listings, please contact Nathan Klein (970) 667-7000 x102 or Jerico Devlin (970) 667-7000 x109 . Search Retail Space For Lease in Fort Collins, Loveland, Greeley, and more using our search tool (https://lcrealestategroup.com/commercial-real-estate)
Warmer Weather Brings Good Opportunity
Spring is here! Warmer weather is just starting to hit us, which also means that the real estate market is about to heat up for the year as well. Even though typically the trend is that residential real estate sales go up during the summer – the same could be said for commercial real estate in Northern Colorado as we head into the spring and summer of 2020.
Growth across Northern Colorado remains extremely strong in 2020. Fort Collins, Loveland, Windsor, Timnath, and Greeley are all growing in both population and cost. The relationship between these two growth rates, however, means that it is a great time to seek real estate opportunities. Population seems to be growing faster than cost, which could mean that the market has yet to catch up to the true cost of real estate.
This makes 2020 an attractive time to search commercial real estate, even if the market plateaus in the coming months and years. Commercial growth and population growth don’t appear to be in any danger in Colorado, especially on the Front Range.
Johnstown is Booming
We have mentioned this one before. If you’re one that is paying attention to the markets across the Front Range, you would have noticed by now that Johnstown is the fastest growing area in Northern Colorado. The population grew over 60% in the period between 2012 and 2017, and the trend looks to continue, in large part due to the completion of large-scale commercial developments.
In addition to just Johnstown, six of the top ten fastest growing cities are located on the Front Range. As long as this trend continues (and, there’s no indication it will slow down), Northern Colorado remains an attractive area to seek out commercial real estate.
Northern Colorado Retail for Sale
Skypond Building, Centerra Promanade
Centerra Shopping Center, Loveland, CO 80538
Sale Price: $9,600,000
Price/SF: $324.44
Total SF: 29,589
Year Built: 2009
Cap Rate: 6.90%
Listing Office: Realtec Commercial Real Estate Services
Overview
Truly a great property that embodies the highest quality asset in the Centerra sub-market. This building boasts top of the line interior finishings and superior architecture and is located right at the heart of the I-25 and US 34 intersections. The building is walking distance from ton of shopping and restaurants, and with ease of access to I-25, is extremely attractive to top employers.
Timberline Office Park
Timberline Rd Fort Collins, CO 80528
Sale Price: $5,800,000
Price/SF: $191.05
Total SF: 30,359
Year Built: 2004
Cap Rate: 5.34%
Listing Office: The Group, Inc.
Overview
Quality office investment opportunity located in the South Central area of Fort Collins. The office is in the coveted Caribou Office Park with full capacity leased units. The office is located within one mile of dozens of different residential and commercial office parks.
Greeley Office Space
NWC 58th/13th Greeley, CO 80634
Sale Price: $3,100,000
Price/SF: $152.94
Total SF: 20,269 SF
Year Built: 1998
Cap Rate: 7.12%
Listing Office: Black Diamond Commercial Real Estate, LLC
Overview
This office building is 100% occupied with contracted tenants. The building has an additional 3,100 square feet of storage space not included in NOI available to lease as a value-add opportunity.
For more information regarding the above retail opportunities or LC Real Estate Group retail listings, please contact Nathan Klein (970) 667-7000 x102 or Jerico Devlin (970) 667-7000 x109 . Search Retail Space For Lease in Fort Collins, Loveland, Greeley, and more using our search tool (https://lcrealestategroup.com/commercial-real-estate)
Northern Colorado Retail Leasing Market
Commercial real estate in Northern Colorado is perhaps stronger than it has ever been, with historic lows in vacancy and demographic trends that outpace the national averages. Because of this, the market is a prime location for new retail, and potential businesses must act quickly to secure leases. While the population growth has grown steadily and commercial growth has grown to match it, retail spaces are being gobbled up very quickly by large and small business alike.
Even though growth is skyrocketing, leasing costs are only steadily increasing in Fort Collins and across Northern Colorado. Manufacturing and technology companies account for much of the new growth in Fort Collins, but across Northern Colorado, retail availability may be opening up.
New developments in Loveland, Greeley, and Johnstown particularly, are opening up opportunities for businesses up and down the Front Range. Population growth and economic health remain strong as there is a constant influx of new people and businesses looking to invest in the future of the Front Range.
Growth and Stability on the Front Range
Northern Colorado is extremely strong economically, and that strength has definitely impacted the commercial real estate and retail market as well. New inventory rates are at 3.5% in Fort Collins - one of the highest in the entire nation. New retailers are entering the market with new retail developments such as the Foothills Mall in Fort Collins and the new Johnstown Plaza in Johnstown.
Six of the top ten fastest growing cities in Colorado are on the Front Range, and both commercial and residential development along the Front Range continues to soar since 2018. For businesses that are still looking for retail space, both Windsor and Loveland are seeking to undertake large-scale commercial development in the coming years to meet the increasing demands of a growing population.
Northern Colorado Retail Properties for Lease
Loveland Mixed Use Retail Space
400 Garfield Avenue, Loveland CO 80537
Lease Rate: $18.00/NNN
Sq. Ft. Available: 994 - 2,484 SF
Available: January 2021
Primary Leasing: RE/MAX Alliance-Loveland
Overview
Located right on Garfield Avenue, the main street that runs through the heart of Loveland. Available spaces from 686 SF – 2,484 in 8 spaces.
Downtown Fort Collins Retail Space
401 Linden St, Fort Collins, CO 80524
Lease Rate: $16.50-$27.75/NNN
Sq. Ft. Available: 1,281 – 3,977 SF
Primary Leasing: Waypoint Real Estate, LLC
Overview
This property is located in central Downtown Fort Collins with extremely high foot traffic and visibility. Linden street has always been a highly popular area in Old Town Fort Collins, with many boutique shops and restaurants nearby.
Greeley Retail Spaces
4239 Centerplace Dr, Greeley, CO 80634
Lease Rate: $16.00-$25.00/TBD
Sq. Ft. Available: 1,700 – 10,000 SF
Primary Leasing: PB Roche Solutions
Overview
These retail spaces will be available just off of Highway 34 in Greeley located near some of the largest retail chains in Greeley including Best Buy, Kohl’s, Target, Safeway, TJ Maxx, and with many surrounding residential developments.
For more information regarding the above retail opportunities or LC Real Estate Group retail listings, please contact Nathan Klein (970) 667-7000 x102 or Imran Bhimani (970) 518-7704. Search Retail Space For Lease in Fort Collins, Loveland, Greeley, and more using our search tool (https://lcrealestategroup.com/commercial-real-estate)
Northern Colorado Retail Market Overview
The commercial real estate market in the Fort Collins-Loveland is extremely strong and vacancy is near historic lows. Fort Collins in particular boasts extremely favorable economic and demographic trends, as population growth is near twice the national average at just over 2%.
Retail development has picked up, but despite this, retail vacancy remains extremely low and close to all-time lows. The influx of new people and businesses has kept up with development. Fort Collins, Loveland, and Northern Colorado remain fantastic areas for investment opportunities and future growth.
Fort Collins in particular is extremely strong economically, as the presence of Colorado State University bolsters surrounding businesses and growth. This is both because of the influx of research and educated graduates that the university offers the area. More than 20 Fortune 500 companies reside in metro Fort Collins and regularly partner with the school for research and development.
In addition, the craft brewing scene in Northern Colorado is booming. The industry accounts for more than $1 billion in Larimer County alone thanks to giants like Anheuser-Busch, New Belgium, and Odell. The city continues to grow at a rate of just under 2% which is approximately twice the national average, though not quite as quickly as 2014-2015.
Commercial & Retail Leasing
With Fort Collins rapidly growing and low vacancies, you might expect leasing costs to be skyrocketing. Rental costs are indeed increasing, but only moderately so. Technology and manufacturing companies are responsible for much of the growth in the Fort Collins Market
Compared to the rest of the nation, Fort Collins’ retail availability is soaring, with new inventory rates of roughly 3.5% - one of the highest in the nation. Many new retailers have entered the market with the expansion of the Foothills Mall.
The Emergence of Johnstown
While the entire Front Range has been and remains a great market for retail opportunity, Johnstown is one of the prime locations for growth in the commercial sector. The population of Johnstown has increased dramatically in the past decade. From 2012 to 2017, the city has seen growth of almost 60% from 2012 to 2017.
In addition, construction on the Johnstown Plaza completed in 2018 and the mall has attracted many big name tenants. Johnstown is a microcosm of the greater picture of retail development along the I-25 corridor. With six of the top ten fastest growing cities located on the Front Range, opportunity for commercial development remains extremely favorable. Many cities including Loveland and Windsor are undertaking large commercial development projects to keep up with booming population.
Northern Colorado Retail for Sale
Fort Collins South College Shops (3 Shops Total)
Located near 2325 S College Ave, Fort Collins, CO 80525
Price: $8,800,0000
Price/SF: $249.19
Sq Ft: 35,314
Listing Office: Van Hull Commercial
Overview
These three retail properties are located right in the heart of Fort Collins on South College between Drave and Prospect. Colorado State University is located less than one mile away, and South College Ave averages over 45,000 daily commuters.
There are an abundance of nearby high-traffic businesses. Large retailers nearby include King Soopers, Petco, First Bank, OfficeMax, Car Toys, and Whole Foods. Located nearby a large residential area, the average income of residents within a 1-mile radius exceeds $80,000.
All three properties are being sold together and not offered separately.
Loveland Shopping Center
910-950 E Eisenhower Blvd, Loveland, CO 80537
Price: $10,361,524
Price/SF: $111.24
Sq Ft: 93,142
Year Built: 1993
Occupancy: 100%
Cap Rate: 8.65%
Listing Office: CBRE
Overview
This shopping center is a multi-tenant shopping center anchored by JAX Outdoor. The center is located directly on Eisenhower Blvd, the main thoroughfare in and highest traffic street in Loveland.
Greeley Shopping Center
3001 S 23rd Ave Greeley, CO 80631
Price: $12,591,000
Price/SF: ($143.25/SF
Sq Ft: 87,897
Occupancy: 100%
Cap Rate: 6.75%
Listing Office: Colliers International
Overview
This neighborhood center has been a staple in Greeley since being built in 1993. The two-tenant investment lease is occupied by 24 Hour Fitness and Tractor Supply on long-term leases. Both tenants have recently signed on to 10-year leases due to successful track records at this location.
For more information regarding the above retail opportunities or LC Real Estate Group retail listings, please contact Nathan Klein (970) 667-7000 x102 or Imran Bhimani (970) 518-7704. Search Retail Space For Lease in Fort Collins, Loveland, Greeley, and more using our search tool (https://lcrealestategroup.com/commercial-real-estate)
LC Real Estate Group was overjoyed with the 3rd Annual Coats and Boots program this year!
Every year, LC Real Estate Group members raise money and awareness for a program that provides warm winter coats and boots to Loveland Elementary School students across the city. The program is to help out families that may not be able to afford warm clothing for their children, The ultimate goal is to help out those in need and improve the community in which we live – meeting LC Real Estate Group’s mission to mindfully create community.
LC Real Estate Group has already provided more than 250 coats and pairs of boots to schools in need. The program partners with JAX Mercantile and Scheel’s for merchandise. Schools that are part of the program are chosen because they have a larger portion of low-income families, and teachers at the schools work to coordinate with parents to identify children with the greatest need.
The program has grown in the last couple years and LC Real Estate Group hopes to create a long-lasting impact in the community of Loveland for many years to come!
How can you help?
LC Real Estate Group always tries to improve funds and awareness for the Coats and Boots Program within the Thompson School District. Any help from individuals or Loveland Businesses is greatly appreciated!
You can send donations to Northern Colorado United for Youth C/O LC Real Estate Group. The group invites any businesses that are interested in participating in the program to contact Rico Devlin at rico@lcrealestategroup.com or 970-413-1182 or Nathan Klein at nathan@lcrealestategroup.
LC Real Estate Group is proud to support Habitat for Humainty in Loveland. Habitat for Humanity is committed to building affordable homes in Loveland and across Northern Colorado. Habitat for Humanity shares the LC Real Estate Group's goal of Mindfully Creating Community, about making Northern Colorado a better place to work, live, and play.
Thanks to Habitat for Humanity, Jamie and Brandon were able to have an affordable house to raise their daughter and have hope for the future! Contact Habitat for Humanity to learn more about their mission and how you can help!
One of the most exciting and fun events in Loveland all year is the Annual Rubber Duck Race, hosted by the Rotary Club of Loveland! The race takes place on Saturday, August 24th in Loveland, Colorado.
The Rubber Duck Race helps promote literacy in the Thompson School District, with all proceed going towards providing scholarships for select high school students, Chromebooks, and iPads. Local businesses and individuals can purchase tickets to receive entries into the race. Entrants are encouraged to decorate or dress up their ducks as they wish, and a winning duck could receive $1,000 or up to 40 other great prizes as the ducks race down the Thompson River to the finish line. Contact the Rotary Club of Loveland for more information.
If you’d like to donate directly to the Loveland Rotary Club Foundation, and not participate in the race, please visit this link.
Here at LC Real Estate Group, we are proud to support other local businesses and organizations in order to create a stronger community across Northern Colorado!
LC Real Estate Group was proud to participate in the CSU Real Estate Golf Tournament put on by the Everitt Real Estate Center at Harmony Golf Club on Monday, July 22. The golf tournament is in support of Colorado State University Real Estate students, to help students network with industry professionals in Northern Colorado and other real estate professionals. The tournament was originally started by LC Real Estate Group as Ram Real Estate Partners before it was turned over to Everitt Real Estate Center. The tournament has raised more than $30k since it started in 2017, and is all about Mindfully Creating Community in Northern Colorado!
LC Real Estate Group sponsored a team foursome, a hole sponsorship, and was one of the tournament’s Student Package Sponsors. The foursome included Jerico Devlin, Wayne Lewis, Christopher Johnston and Imran Bhimani.
We are proud to support CSU with other industry supporters such as C3 Real Estate Solutions, DPC Companies, and other Northern Colorado companies!
As a real estate investor, you should always be considering the return on investment (ROI) on any investment property. This is usually pretty standard when performing an investment analysis on a real estate investment. However measuring ROI has gotten more sophisticated using Cap Rate and Cash on Cash Return.
Understanding the difference between Cap Rate and Cash on Cash Return, and how they are used for investment analysis can help you be better informed about investment decisions.
Cap Rate
Capitalization Rate is used to measure the overall profitability of a commercial investment property – and can be used to identify if an investment is risky or not. It measures the net income of a commercial property against the market value of the property. Higher cap rates indicate much higher risk but also higher profitability. In turn, a lower cap rate indicates lower risk, but also low potential profitability. The cap rate represents the natural rate of return on a property.
The formula for Cap Rate is fairly simple:
Capitalization Rate = Net Operating Income / Current Market Value of the Property
Net operating income is the expected annual income of the property minus any operating expenses of the building. Annual income will primarily come from rental income from tenants, and operating expenses include the upkeep of the building as well as property taxes. In some cases, you might use the Purchase Price of a property instead of the Current Market Value. However, this isn’t as popular as you might get unrealistic values for properties that were purchased some time ago.
Cap Rate is most useful for commercial property investors to compare different investments against each other measuring risk and return. Some investors might only consider properties that fall within a certain range in order to decide what good investments might be for their portfolio.
In addition, you can use Cap Rate to measure how a property is doing over time and whether or not the investment is improving or declining over time. An investor can measure cap rate year-over-year and decide whether to keep a commercial investment in their portfolio or not. If deciding to sell the property, cap rate can help determine value by comparing against other similar properties.
Cash on Cash (CoC) Return
Similar to Cap Rate, Cash on Cash Return can be used to evaluate whether or not an investment is improving. It measures the cash income earned against the cash invested in a property. A more simple way of thinking about this is it measures the annual income earned by a property in relation to the mortgage paid.
Cash on Cash Return is widely recognized as a good measure to use for ROI calculations on a commercial investment property. This is because it is both effective an easy to understand, and is useful for measuring real estate performance.
The formula for Cash on Cash Return is:
CoC Return = Annual Net Operating Income / Total Cash Investment
CoC Return is useful when debt is included in a real estate transaction (which is often the case for commercial real estate properties). In this case, the Cash on Cash Return will be different than the standard ROI calculation. It can be useful as a forecasting tool for setting targets of earnings and expenses for a property.
Understanding ROI Calculations
LC Real Estate Group is the leader in commercial real estate investment in Northern Colorado. Our team can help with investment strategy, investment analysis, and measuring CoC Return and Cap Rate. Contact us today to get in touch with our investment team at 970-667-7000 or wayne@lcrealestategroup.com.
Copper Ridge is the second new home development currently underway in northwest Loveland. Copper Ridge is located west of US Highway 287/North Garfield Avenue and north of West 57th Street behind Super Walmart. Copper Ridge is accessed through the Wintergreen subdivision, which was completed by Saint Aubyn and DR Horton completed in 2017 and 2018 respectively. The land features foothills views to the west and abuts the Burlington Northern Railroad and has an easement for the Louden ditch that runs through the property.
Copper Ridge was purchase by Journey Homes, which plans to provide affordable new single-family homes below $400,000 in the Loveland market. The fifty-five acre property consists of 152 single-family lots and sold June 1st of 2018 for $1,800,000. This equates to a purchase price of $32,555 per acre and $11,842 per lot. The property sold without raw water dedicated and was located within the City of Loveland water district.
This information was provided by Wayne Lewis, Partner & Broker Associate with the Land Group at LC Real Estate. Wayne has more than 10 years of experience in land and investment real estate and can be reached at 303.588.8808 or by email. Any information provided herein should be not be relied upon and should be independently verified.
The City of Loveland’s Water and Power Department has received approval to buy 9.1 acres of land north of the wastewater treatment plant on Boise Avenue.
The idea behind the approval is that the Water and Power Department wants to purchase the land to prevent residential development and resell it for other purchases. If used for residential housing, the city is worried there may be complaints from odor with proximity to the plant. Originally, the idea was to build a tiny-house community of affordable housing on the land.
You can read more about this story from the Reporter Herald here.
The City of Greeley has identified the west side of the city for high-potential growth for commercial investments. This is good news for commercial investors with future plans for shopping districts or commercial growth.
The west side of Greeley is attractive for many reasons, most of all the proximity to the I-25 corridor which has seen exponential growth in the last few years. Because of this, the competition for retail space is high in this area. The report places Greeley’s vacancy rate below 2 percent with rates projected to drop even further with increases in rent rates. The city will likely pursue growth opportunities in the coming years much more aggressively with growth projected by the U.S. Census at 142 percent through 2023.
In contrast, the east side of Greeley is projected to have flat growth or even lose residents as the town growth moves towards the west. Average household incomes on the west side of town range from $14,600 to $58,200.
The report commissioned by the city cited a report that shows high demand in west Greeley for furniture stores, electronics stores, groceries, gasoline, clothing stores, sporting goods outlets, restaurants, and more. This high demand for retail growth makes this area the perfect investment opportunity for commercial property in Northern Colorado.
LC Real Estate Group can help investors explore opportunities in this area both by developing commercial real estate strategy and brokering real estate deals. Contact us to learn more about commercial opportunities in Northern Colorado!
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