Denver-area Q1 commercial real estate sales down 47% from 2009

Thursday, May 20, 2010, 2:16pm MDT | Modified: Thursday, May 20, 2010, 10:00pm

LoopNet: Denver-area Q1 commercial real estate sales down 47% from 2009

Denver Business Journal - by Paula Moore

Denver-area commercial real estate sales for the first quarter were down 47 percent by dollar volume compared to the same period of 2009, according to a report Thursday from LoopNet Inc.

Selling price per square foot, by product type, dropped 27 percent year over year for office buildings and down 13 percent for industrial buildings, but was up 80 percent for retail buildings and up 7 percent for apartment properties.

Based in San Francisco, LoopNet operates LoopNet.com, an online real estate listing service.

The company’s first-quarter sales figures include transactions of $2.5 million and more.

Specific first-quarter sales information for metro Denver:

• Office buildings — Total sales volume dropped to $316 million from $667 million in 2009’s first quarter. Average price per square foot decreased to $135 from $185 year over year. By comparison, the average sales price per square foot nationwide in this year’s first quarter was $156, down from $252 year over year.

Major Denver-area office building sales for 2010’s initial period included a National Park Service Building in Denver ($28.7 million), Westmoor Technology Park in Broomfield ($24.3 million) and West End Plaza in Boulder ($14.5 million).

• Industrial buildings (warehouses, distribution centers, flex space) — Total sales volume dropped to $189 million from $415 million year over year. Selling price per square foot decreased to $66 in the first quarter from $75 in 2009’s initial period. Nationwide, first-quarter price per square foot decreased to $55 from $66 in the initial period of ’09.

Significant industrial property sales in the first quarter included the building at 13310 James E. Casey Ave. in Greenwood Village ($7.6 million), 1460 Over Look Dr. in Lafayette ($5.46 million) and Dry Creek Center in Greenwood Village ($5.3 million).

• Retail buildings (strip centers, grocery-anchored shopping centers, freestanding stores) — Sales volume increased to $597 million from $430 million in the initial period of ’09. Price per square foot rose to $267 from $148 year over year. By comparison, retail selling price per square foot nationwide in the first period was $142 compared to $180 year over year.

Major first-quarter retail sales included Meadows on the Parkway Shopping Center in Boulder ($30.79 million), Coal Mine Shopping Center in Littleton ($10.5 million) and the Petco store at 4100 E. Mexico Ave. in Denver ($7.8 million).

• Apartment properties — Total apartment/multifamily sales volume in the first quarter dropped to $393 million from $528 million for the same period of 2009. Price per unit increased to $78,318 from $73,112 year over year. Nationwide, price per unit dropped to $85,943 from $93,701 during the same period.

Major apartment deals in the metro area in this year’s first three months included 4550 Cherry Creek in Denver ($52.8 million), Jefferson at Arvada Ridge in Arvada ($28.4 million) and Coronado Crossing in Denver ($6.5 million).

pmoore@bizjournals.com