Realtor Travis Ackerman shares North Colorado office market real estate update for this year’s first quarter.
Following a strong year in 2018, North Colorado’s office space market has enjoyed a promising start to 2019, something which looks set to continue for the foreseeable future. That’s according to realtor Travis Ackerman, a director for Cushman & Wakefield Commercial Real Estate, as he shares an office market real estate update for the year so far.
“We’re pleased to report that both overall and direct average gross rental rates have increased from the close of 2018 to the close of the first quarter of 2019,” reveals Ackerman, “increasing by 1.4 percent to $23.38 per square foot, and by precisely one percent to $23.22 per square foot, respectively.”
Rental rates, he adds, continue to rise across all building classes as demand continues to outstrip supply across much of North Colorado.
According to Ackerman, office space leasing activity recorded a modest uptick in the first quarter of 2019 with approximately 85,000 square feet of space leased, up by around 3.5 percent from the fourth quarter of 2018. “Despite an increase over the previous quarter, the figure is somewhat dwarfed by the more than 200,000 square feet leased during the first quarter of last year, however,” adds the expert.
This, says Ackerman, is mirrored by first quarter sales activity during the same two periods, although the outlook remains highly promising for the rest of the year.
Sales activity, in particular, during the first quarter of 2019 has been affected by a slow down in rates of new construction. “While no new office buildings were delivered in North Colorado during the first quarter of this year, several have reached their final stages of construction and are expected to deliver by the end of the current quarter,” Ackerman adds.
Accordingly, off to a broadly strong start in 2019, the North Colorado office market looks set to continue its momentum for the remainder of the year, particularly as new construction projects approach completion. “Still, office space purchase options will remain scarce for both owners and users, especially in the short term,” suggests Ackerman.
“Overall, however,” adds the Cushman & Wakefield Commercial Real Estate director, wrapping up, “the North Colorado office market is expected to remain strong for the foreseeable future.”
Travis Ackerman is a director for Cushman & Wakefield Commercial Real Estate specializing in the sale and lease of land and industrial, retail, and office space in North Colorado. Since 2007, Colorado State University graduate Ackerman has been involved in a total of more than 500 transactions worth in excess of $200 million. Known in the North Colorado real estate community for his integrity and work ethic, realtor and Colorado native Travis Ackerman has elevated himself to a position whereby which he now represents one of the top commercial brokers in the region.