The commercial real estate market is returning to more normal conditions. While some areas, such as office space, are still struggling, other areas, such as industrial and retail space, are seeing increased demand.
“Overall, Grand Junction remains a healthy market,” said Becca Posner, CCIM commercial broker with Coldwell Banker Distinctive Properties. “We’re lucky because we’re a small market. Even though inventory is low in some places and vacancy rates are higher than ever in some places, we still have a healthy commercial market.”
Sid Squirrell, commercial broker and developer at CCIM at Bray Commercial Real Estate, agreed that the market appears to be doing well after the unprecedented interest rate increases of the past two years.
“It’s strange. Now we’re looking at lower interest rates,” Squirrel said. “Then things will get better because it will be cheaper to borrow money. Borrowing costs are taken into account when you look at your budget and consider whether it makes sense. We will continue to trade We are stable in the face of change, and tenants continue to search and buyers continue to buy.”
He added that people are holding back because they are waiting to see who will become president because of the election, which will affect the future direction of the market. Geopolitical issues, wars, and conflicts overseas are also affecting people’s purchasing intentions. But they are also optimistic because interest rates are falling.
“Demand is starting to catch up,” Squirrel said. “Retail surprised me. There were a lot of openings and they were filled in a short period of time. Industrial market has also emerged, but I don’t see any construction to speak of in the industrial market. So , it looks like we need to start building more industrial space.”
Posner added that more industrial organizations are coming to Grand Junction, and some large companies are starting to put down roots here and using Grand Junction as one of their distribution hubs. . Manufacturing is also moving into the region, further strengthening the industrial market.
A key area for development is the 24 Road Corridor, which is home to a Costco, a new car wash, and other development projects. The F 1/4 Road area is under development and clinics are expanding throughout Grand Junction. Grocery store chain WinCo also purchased space in the northwest area for future development.
“Grand Junction is a great place to live. We have an improving school system, BLM and recreational life. It’s the best of all worlds,” Posner said. “We support some of these big distribution companies because we’re close to places like Salt Lake City and Denver.”
One of the biggest challenges is how to deal with prohibitive construction and permitting costs, timelines for completing work, and increased supply costs and other expenses that developers may encounter along the way. is to decide.
“We haven’t seen construction costs reset because everyone is so busy, and we won’t see them reset until the recession hits,” Squirrel said. “There may not be a recession, so prices may not reset. It’s the new normal, but it’s still expensive out there. Leases reflect the value of real estate, and new construction Once we start building, prices have to go up to justify the cost of new construction.”
Liss and Posner agree that prospective buyers and sellers should find a broker who knows the market well, build a relationship with them, and let them navigate buyers and sellers through the process. I agree. It’s also important for prospective buyers and sellers to do their homework, crunch the numbers, be patient, and look for the best deals that add value.
“Grand Junction used to be the retail hub of western Colorado, but that’s gone as more stores have sprung up in smaller areas,” Squirrel said. “The addition of these developments will have a positive impact on our economy. Grand Junction continues to grow and we will continue to see people move here and retire here. ”
“This is a small community, so commercial brokerages work together to help their clients succeed,” Posner added. “It’s good to have someone representing you who knows the market and can help you navigate it. Whether it’s buying, selling, leasing, or growing your business. That’s what we’re here for.”
