The mountainous Northern Colorado region features a collection of cities with multiple promising commercial real estate opportunities. With a thriving, diverse economy and low unemployment levels, Northern Colorado invites investors and tenants alike to invest in a hotbed of commercial properties. Regardless of their investment targets, those who are interested will find a plethora of available property on Crexi.
Brokers representing property in Northern Colorado cities such as Fort Collins and Loveland also use Crexi to list and navigate their listings from start to close. With Crexi, brokers can instantly connect to thousands of viable buyers and tenants who’ve indicated an active interest in Northern Colorado property.
As of this writing, buyers and brokers have used Crexi to close more than $300 billion in asset sales and represent upward of $1.3 trillion in value.
Crexi proudly serves Northern Colorado, Loveland, Fort Collins, Greeley, and the surrounding cities as the fastest-growing online commercial real estate marketplace.
The State of Commercial Real Estate in Northern Colorado
The Northern Colorado commercial real estate market includes the Fort Collins/Loveland and Greeley metropolitan areas. Located along the Front Range Urban Corridor of Colorado, these cities are less than 60 miles from Denver.
Northern Colorado’s economy continues to rebound from the pandemic, with unemployment down to an average of just 6.0%. Universities, technology companies, agriculture, and energy are just some of the industry sectors driving economic growth in the region.
The area is home to Fortune 500 companies such as Intel and Hewlett-Packard. At the same time, the 2.5 million acres of agricultural land in the Greeley region produce more than any other county in the nation outside of California. Top universities like Colorado State University and the University of Northern Colorado help make Northern Colorado desirable for bioscience and technology companies.
Denver is less than a two-hour drive from the main cities in Northern Colorado, where sports fans can go to cheer for the Denver Broncos, the NBA Denver Nuggets, the Colorado Rockies MLB team, and the NHL’s Colorado Avalanche.
Northern Colorado Regional Breakdown
Larimer and Weld counties – where Fort Collins, Loveland, and Greeley are located – are among the three fastest-growing metro areas in the state over the past decade. Northern Colorado saw an average population growth of 25%, adding more than 76,000 new residents over the last ten years:
- The cities of Northern Colorado – Fort Collins, Loveland, and Greeley – are home to a total of about 340,000 residents, with about 682,000 people living in the combined metropolitan areas.
- The population of Northern Colorado has grown by more than 2.6% year-over-year.
- Fort Collins is the most populous city in Larimer County (just ahead of Loveland), located less than 60 miles from Denver.
- Greeley is the most populous city in Weld County and is situated less than 50 miles from Denver.
- Other towns in Northern Colorado include Wellington, Estes Park, Berthoud, and the Town of Windsor.
- The median age of Northern Colorado is about 35.6 years, a little less than the median age in the U.S.
The Northern Colorado Job Market
The job market in Northern Colorado is continuing to recover, with the average unemployment rate down to about 6.0%, according to the U.S. Bureau of Labor Statistics (June 2021). Industry sectors showing the fastest signs of growth include leisure and hospitality, education and health services, construction, and trade and transportation:
- The GDP of the Fort Collins/Loveland MSA is more than $20.7 billion and has grown by more than 38% over the past five years.
- GDP of the Greely MSA is nearly $20 billion and has grown by nearly 23% over the past five years.
- In Northern Colorado (Fort Collins, Loveland, and Greeley), unemployment is 6.0% (June 2021).
- Target industry sectors in Northern Colorado include bioscience, software and hardware, agriculture/food processing, energy, and manufacturing.
- The bioscience cluster in Fort Collins/Loveland comprises 45 companies with close associations with Colorado State University that research, produce, and distribute medical devices and instruments, pharmaceuticals, and biofuels.
- Northern Colorado continues to attract technology companies specializing in data mapping, computer programming, internet service, and software development.
- Greeley and Weld County are home to more than 2.5 million acres of agricultural land, and the area is the top agricultural producing county in the nation, outside of California.
- The energy sector in Northern Colorado consists of oil and gas wells and green energy processes such as wind power and dry ethanol.
- The largest employers in Northern Colorado include Colorado State University, the City of Fort Collins, Broadcom, food processing company JBS USA, Banner Health/North Colorado Medical Center, University of Northern Colorado, and State Farm.
- Colorado State University, University of Northern Colorado, the Institute of Business & Medical Careers, and Aims Community College are a few colleges and universities located in Northern Colorado.
- Over 90% of the residents in Northern Colorado are high school graduates or higher, while more than 35% hold a bachelor’s degree or an advanced degree.
The transportation infrastructure of Northern Colorado includes:
- Interstate and state highways
- Parcel services from companies such as FedEx and UPS
- Freight rail service provided by Union Pacific and Burlington Northern Santa Fe
Fort Collins, Loveland, and Greeley are located less than 60 miles from Denver and are within an easy commute of the Denver International Airport.
Northern Colorado Industrial Market
Industrial Trends – Fort Collins/Loveland
Flex industrial space is in demand in Fort Collins/Loveland due to the roster of high-tech R&D firms doing business in the metropolitan area. Fort Collins is supported by several highways providing access throughout the region, and investors remain bullish on the Fort Collins industrial market. Over $75 million in industrial assets have recently changed hands, one of the highest industrial sales volumes in Fort Collins in the past ten years.
- Total industrial inventory: 22,779,259 SF
- Average asking rent: $10.33 per SF year, net
- Vacancy rate: 5.0%
- Absorption: -91,521 SF in Q1 2021
- New construction: 0 SF delivered (Q1 2021) with 639,381 SF under construction
- Top industrial leases past 12 months include 171,231 SF to Woodward, Inc., 95,472 SF to Danhydra, Inc., and 72,396 SF to Home Depot.
Industrial Trends – Greeley
Although the vacancy rate has doubled since the pandemic began, the supply of industrial space in Greeley remains historically tight, with a vacancy rate of just 5.4%. As with Fort Collins and Loveland, flex industrial space makes up a significant portion of the industrial inventory in Greeley, with owner-users driving much of the investment in the metro area.
- Total industrial inventory: 24,462,528 SF
- Average asking rent: $10.70 per SF per year, net
- Vacancy rate: 5.4%
- Absorption: -18,153 SF in Q1 2021
- New construction: 0 SF delivered (Q1 2021) with 580,445 SF under construction
- Top industrial leases past 12 months include: 127,865 SF to Ranger Energy Services, 80,000 SF to Summit Bodyworks, and 59,926 SF to PetDine
- Largest industrial submarkets: 495 South, 495 North, 128 South, 495 West
Northern Colorado Office Market
Office Trends – Fort Collins/Loveland
Colorado State University (CSU) is the largest employer in the Fort Collins/Loveland metropolitan area and significantly affects the demand for office space. Tech firms such as Intel, Hewlett-Packard, and Agilent Technologies are some of the most prominent office tenants in Fort Collins.
Despite having CSU and tech firms in the metro area, the office market in Fort Collins and Loveland continues to feel the impact of the pandemic. Net absorption is trending downward for five quarters in a row, and rents for office space in Fort Collins declining by about 1.6% over the past twelve months.
- Total office inventory: 11,926,850 SF
- Average asking rents: $22.89 per SF per year, gross
- Overall vacancy rate: 7.7%
- Absorption: -43,205 in Q1 2021
- New construction: 0 SF delivered in the current quarter with 142,792 SF currently under construction.
- Top office leases past 12 months include: 31,000 SF leased at the 3420 E. Harmony Road office building to ASRC Federal Holding Company, and 14,200 SF leased in Johnstown Plaza to Rod Works.
Office Trends – Greeley
As with many commercial real estate markets in the U.S., the office market in Greeley is witnessing an upward pressure on vacancies, with rents slightly declining. Although large office workplaces have begun to reopen, many office occupiers still allow employees to work from home as businesses in Greeley ponder the long-term viability of having a remote workforce.
- Total office inventory: 5,704,632 SF
- Average asking rents: $19.59 per SF per year, gross
- Overall vacancy rate: 5.5%
- Absorption: 23,616 SF in Q1 2021
- New construction: 0 SF delivered in the current quarter with 0 SF of office space under construction
- Top office leases past 12 months include: 22,223 SF leased at the Elk Lake Shopping Center to IMBC, and 10,441 SF leased to Husky Signs at 3764 Imperial Street
Northern Colorado Retail Market
Retail Trends – Fort Collins/Loveland
Due to the strong demographics, above-average economy, and diverse employment base, the retail market in Fort Collins has weathered the pandemic relatively well. While not immune to store closings, net absorption is positive while rent growth has declined by just 0.3%.
- Total retail inventory: 20,535,469 SF
- Average asking rent: $18.82 per SF per year, NNN
- Overall vacancy rate: 4.7%
- Net absorption: +73,200 year-over-year
- New construction: 0 SF delivered current quarter with 66,032 SF under construction
- Top retail leases past 12 months include: 45,514 SF leased to Target in Robinson Piersall Plaza, while the Burlington Coat Factory leased 24,890 SF in Front Range Village.
Retail Trends – Greeley
Although the city has had its share of big-box store closures, in most cases, large retail spaces are leased again relatively quickly in Greeley. Existing centers are seeing speculative PAD and infill development while growing cities such as Erie, Frederick, and Firestone in the metropolitan area are a vibrant destination for smaller-scale retail development in Greeley.
- Total retail inventory: 11,798,117 SF
- Average asking rent: $14.87 per SF per year, NNN
- Overall vacancy rate: 3.0%
- Net absorption: -33,740 SF in Q1 2021
- New construction: 5,500 SF delivered in the current quarter with 0 SF under construction
- Top retail leases past 12 months include: 51,544 SF leased to Gold’s Gym, 18,782 SF leased to Cousins RV, with 7-Eleven leasing 5,500 SF of retail space.
- Largest retail submarkets: Rockingham, Route 3 South, Lawrence/Arlington, Route 24
Northern Colorado Multifamily Market
Multifamily Trends – Fort Collins/Loveland
Before the pandemic began, the multifamily market in Fort Collins was in the middle of a major supply wave, with deliveries topping 1,600 units in 2019. Today, due to the strong demographic and economic trends in Fort Collins and Loveland, apartment rents are on the rise and vacancies are on the decline due to consistent demand for apartments in the Fort Collins metropolitan area.
- Total housing units: 154,407
- Renter occupied: 34%
- Total multifamily units: 15,113
- Average effective rent: $1,416 per month
- Vacancy rate: 8.0%
- New construction: 146 units delivered in Q1 2021 with 450 units currently under construction
- Apartment buildings under construction: 5150 Ronald Reagan Blvd. (264 units), Timnath Trail at Riverbend (82 units), and The Social at Fort Collins (71 units)
- Median household income: $75,186
- Per capita income: $40,582
Multifamily Trends – Greeley
While Greeley’s multifamily development is normally seen within the city, apartment developers are now targeting fast-growing cities within the Greeley metropolitan area, such as Erie and Firestone, located in South Weld County. Even though the job market is rapidly recovering, vacancy rates are increasing while rents for multifamily units in Greeley remain on the rise.
- Total housing units: 115,917
- Renter occupied: 26%
- Total multifamily units: 9,798
- Average asking rent: $1,217 per month
- Vacancy rate: 10.5%
- New construction: 0 units delivered in Q4 2020 with 276 units currently under construction
- Apartment buildings under construction: Wildhorse at Tuscany (270 units) and Mead Town Center (6 units)
- Median household income: $78,615
- Per capita income: $33,863
How Crexi Connects Buyers and Tenants to Northern Colorado CRE Properties
Northern Colorado’s cities have proven surprisingly resilient to COVID-19 related closures, sporting a thriving job market and an unemployment rate of just 6% in the most recent measure.
Buyers and tenants employ Crexi’s free marketplace to explore hundreds of Northern Colorado commercial properties. Interested parties seeking to invest or set up a business in the region use Crexi’s search tools to browse by:
- Asset class
- Square footage
- Price/rate per square foot
- Cap rate
- And other filters
Once the perfect property is found, a buyer or renter can easily connect with the Northern Colorado broker via Crexi’s messaging platform. Those interested can also download brochures and flyers, check out offering memorandums (OMs), and even send a letter of intent through Crexi’s secure system.
Intelligence Connects Investors to Data and Market Knowledge
Accurate, timely information makes all the difference in investing in assets such as commercial real estate. Crexi’s Intelligence offering features a subscription-based data service to users, equipping property seekers with millions of property records, third-party verified sales comparables, and over 50 MSA market reports.
Too, the Insights tab on every page immediately enhances a property seeker’s understanding of any asset with no additional research required. Each overlay features relevant demographic information, average asking prices or rents, square footage averages, nearby points of interest, traffic counts, and other due diligence data.
Crexi Intelligence seeks to enhance users’ market understanding, reduce research costs, and allow users to make the most informed commercial property decisions.
How Northern Colorado Brokers Win with Crexi
Crexi’s marketplace features more than 1000 Northern Colorado properties for sale and for lease within the region. Brokers representing property in Lanier and Weld Counties can easily list and market their properties across asset classes, such as:
- Office buildings
- Industrial units
- Multifamily apartments
- Retail developments
- Mixed-Use properties
- Research and development headquarters
- Manufacturing warehouses
- Hospitality buildings
- Non-traditional properties such as data centers, medical offices, utilities, etc.
Brokers in Northern Colorado employ Crexi’s digital tools to enhance their workflows and successfully execute dispositions on behalf of their clients. Crexi’s robust lead-management dashboard allows agents real-time insight into leads that interact with their listings. Brokers can also navigate each due diligence phase and paperwork in one centralized location, thanks to Crexi’s due diligence file vault.
And while these free tools are useful, Crexi’s CRE technology fully reveals itself with Sale PRO, Lease PRO, and All PRO.
Crexi All PRO
Crexi PRO empowers brokers to accelerate their pipelines with simplifying digital tools, machine-learning marketing automation, and detailed analytics.
PRO brokers’ listings receive automatic placement atop Crexi’s search result pages, curated to match user preferences and win more views and higher click-through rates. Crexi also automatically sends out email blasts with featured PRO listings further curated to each user’s search behavior. This machine-learning automation wins PRO properties higher engagement, with 10-15% higher click-through rates on average than non-PRO listings.
Brokers using Crexi PRO also enjoy unlimited access to Intelligence, allowing them to better serve their clients with detailed property insights and a vast comparables library.
Using Crexi PRO, Northern Colorado commercial brokers can quickly connect with the over 28,000 leads interested in Northern Colorado since 2019 — of which 64% came from out of state — and over 3 million leads nationwide seeking property on Crexi in 2020.
On average, PRO brokers gain 125% more leads and close six-to-eight more contracts than non-PRO users.
Contact firstname.lastname@example.org to learn more about All PRO.