Commercial Market Report Q3 2020 –
Industrial Leading During Pandemic
Who would have thought in March of 2020 that we would still be dealing with the COVID-19 pandemic at the beginning of October? Luckily, Colorado’s response to the virus was proactive in comparison to the rest of the nation. As Colorado’s stay-at-home orders lifted slowly for businesses, we saw a definite reclamation of jobs this quarter. Denver has reclaimed about half of the jobs lost during April shutdowns, according to June data from the Bureau of Labor Statistics. The Bureau also reported that the nonfarm unemployment rate (which accounts for the number of workers in the U.S. excluding farm workers and workers in a handful of other job classifications) compressed below 10%, outperforming the national average.
The Industrial Market
The Pandemic has caused less of a negative impact on the industrial sector in comparison to all other sectors. Many industrial tenants are considered essential and have been able to stay open, and are likely to continue business as usual. Logistics and e-commerce tenants have been fortunate, as online ordering from home is a prime option. Speaking of Prime, Amazon leased 700,000 SF locally in Aurora and is planning to bring on 175,000 workers across the U.S. This demand brought vacancies below the long-term average. At the start of 2020, around 5.5 million SF of industrial space was under construction. Rents are more than 60% above the peak of the previous cycle, one of the best performances seen nationwide. More details in report…
How Can Entrepreneurs Take Advantage of the Q3 2020 Commercial Market?
Investing in commercial real estate has historically been a sound option for investors looking for a stable return on their capital investments. Entrepreneurs looking to build wealth should consider purchasing commercial real estate in our current economic conditions and take advantage of the low-interest rates available. Currently, CRE loan rates can average as low as 2.03% and can be as high as 13.23%, depending on the loan product. More details in report…
For more information on how to benefit from the current commercial real estate market, contact Transworld Commercial Real Estate at 720-574-2953 or visit transworldcre.com.
ABOUT TRANSWORLD COMMERCIAL REAL ESTATE
Transworld is a leading commercial real estate firm in Colorado serving the Rocky Mountain Region. Over the past eight years, our team has completed more than 200 transactions totaling 2.5 million+ square feet in leasing and have completed in excess of $30 million in sales over 25 states in the retail, office, industrial, and flex commercial real estate markets. Through their business brokerage partner, Transworld Business Advisors – Rocky Mountain, Transworld also advises clients on business mergers & acquisitions.
* This Commercial Market Report was compiled with data provided by Transworld Commercial Real Estate and CoStar. Cover photo provided by Zoom.us.