Costar Denver Retail Report

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Content

The CoStar
Retail Report
Y E A R - E N D

2 0 0 9

Denver Retail Market

YEAR-END 2009 – DENVER

Denver Retail Market
Table of Contents
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A
Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B
Terms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C
Market Highlights & Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Inventory & Development Analysis
Select Top Deliveries
Select Top Under Construction Properties
Figures at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Figures at a Glance by Building Type & Market
Figures at a Glance by Building Type & Submarket
Historical Figures at a Glance
Leasing Activity Analysis
Select Top Lease Transactions
Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Sales Activity Analysis
Select Top Sales Transactions
Select Land Sales
Select Same Building Sales
Analysis of Individual CoStar Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Aurora Market
Boulder Market
Broomfield Market
Central Business District Market
Clear Creek County Market
Colorado Blvd/Glendale Market
Elbert County Market
Fort Collins/Loveland Market
Gilpin County Market
Longmont Market
Midtown Market
North Denver Market
Northeast Denver Market
Northwest Denver Market
Park County Market
Parker/Castle Rock Market
Southeast Denver Market
Southwest Denver Market
Weld County Market
West Denver Market

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

A

DENVER – YEAR-END 2009

Denver Retail Market
Methodology
The CoStar Retail Report calculates Retail statistics using CoStar Group's base of existing, under
construction and under renovation Retail buildings in each given metropolitan area. All Retail building
types are included, including Community Center, Freestanding Retail, Neighborhood Center, Power
Center, Regional Mall, Specialty Center and Unanchored Strip Center, in both single-tenant and multitenant buildings, including owner-occupied buildings. CoStar Group's national database includes
approximately 69.1 billion square feet of coverage in 2.8 million properties. All rental rates reported in
the CoStar Retail Report are calculated using Triple Net (NNN) rental rates.

For information on subscribing to CoStar’s other products and services, please contact us at
1-877-7COSTAR, or visit our web site at www.costar.com

© Copyright 2010 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the
information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or
completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or
warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
CoStar Group, Inc.
2 Bethesda Metro Center • Bethesda, MD USA 20814 • (800) 204-5960 • www.costar.com • NASDAQ: CSGP
B

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
Terms & Definitions
Anchor Tenant: A large national or regional retailer that serves as
a primary draw for a shopping center; a store strategically located
in a retail property in order to enhance, bring attention to, or
increase traffic at the property. Sometimes called a “destination”
tenant, usually these tenants lease at least 25,000 SF.
Availability Rate: The ratio of available space to total rentable
space, calculated by dividing the total available square feet by the
total rentable square feet.
Available Space: The total amount of space that is currently
being marketed as available for lease in a given time period. It
includes any space that is available, regardless of whether the
space is vacant, occupied, available for sublease, or available at
a future date.
Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset.
Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year’s net operating
income and the current market value of a particular property.
The Cap Rate is calculated by dividing the annual net operating
income by the sales price (or asking sales price).
Community Center: A shopping center development that has a
total square footage between 100,000 – 350,000 SF. Generally
will have 2-3 large anchored tenants, but not department store
anchors. Community Center typically offers a wider range of
apparel and other soft goods than the Neighborhood Center.
Among the more common anchors are supermarkets and super
drugstores. Community Center tenants sometime contain retailers selling such items as apparel, home improvement/furnishings,
toys, electronics or sporting goods. The center is usually configured as a strip, in a straight line, or an “L” or “U” shape.
Construction Starts: Buildings that began construction during a
specific period of time. (See also: Deliveries)
Deliveries: Buildings that complete construction during a specified
period of time. In order for space to be considered delivered, a
certificate of occupancy must have been issued for the property.
Delivery Date: The date a building completes construction and
receives a certificate of occupancy.
Developer: The company, entity or individual that transforms raw
land to improved property by use of labor, capital and entrepreneurial efforts.
Direct Space: Space that is being offered for lease directly from
the landlord or owner of a building, as opposed to space being
offered in a building by another tenant (or broker of a tenant)
trying to sublet a space that has already been leased.
Existing Inventory: The square footage of buildings that have
received a certificate of occupancy and are able to be occupied
by tenants. It does not include space in buildings that are either
planned, under construction or under renovation.
Freestanding Retail: Single tenant building with a retail tenant.
Examples include video stores, fast food restaurant, etc.
Full Service Rental Rate: Rental rates that include all operating
expenses such as utilities, electricity, janitorial services, taxes and
insurance.
General Retail: Typically are single tenant freestanding generalpurpose commercial buildings with parking. Many single retail
buildings fall into this use code, especially when they don’t meet
any of the more detailed use code descriptions.
Growth in Inventory: The change in size of the existing square
footage in a given area over a given period of time, generally due
to the construction of new buildings.
Landlord Rep: (Landlord Representative) In a typical lease trans©2010 COSTAR GROUP, INC.

action between an owner/landlord and tenant, the broker that
represents the interests of the owner/landlord is referred to as the
Landlord Rep.
Leased Space: All the space that has a financial lease obligation.
It includes all leased space, regardless of whether the space is
currently occupied by a tenant. Leased space also includes space
being offered for sublease.
Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building
or market in a given period of time. It includes direct leases,
subleases and renewals of existing leases. It also includes any
pre-leasing activity in planned, under construction, or under
renovation buildings.
Lifestyle Center: An upscale, specialty retail, main street concept
shopping center. An open center, usually without anchors, about
300,000 SF GLA or larger, located near affluent neighborhoods,
includes upscale retail, trendy restaurants and entertainment
retail. Nicely landscaped with convenient parking located close
to the stores.
Mall: The combined retail center types of Lifestyle Center,
Regional Mall and Super Regional Mall.
Market: Geographic boundaries that serve to delineate core areas
that are competitive with each other and constitute a generally
accepted primary competitive set of areas. Markets are buildingtype specific, and are non-overlapping contiguous geographic
designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further
subdivided into Submarkets. (See also: Submarkets)
Multi-Tenant: Buildings that house more than one tenant at a
given time. Usually, multi-tenant buildings were designed and
built to accommodate many different floor plans and designs for
different tenant needs. (See also: Tenancy).
Neighborhood Center: Provides for the sales of convenience
goods (food, drugs, etc.) and personal services (laundry, dry
cleaning, etc.) for day-to-day living needs of the immediate neighborhood with a supermarket being the principal tenant. In theory,
the typical GLA is 50,000 square feet. In practice, the GLA may
range from 30,000 to 100,000 square feet.
Net Absorption: The net change in occupied space over a given
period of time. Unless otherwise noted Net Absorption includes
direct and sublease space.
New Space: Sometimes called first generation space, refers to
space that has never been occupied and/or leased by a tenant.
Occupied Space: Space that is physically occupied by a tenant.
It does not include leased space that is not currently occupied
by a tenant.
Outlet Center: Usually located in a rural or occasionally in a tourist location, an Outlet Center consists of manufacturer’s outlet
stores selling their own brands at a discount. 50,000 – 500,000
SF. An Outlet Center does not have to be anchored. A strip configuration is most common, although some are enclosed malls
and others can be arranged in a village cluster.
Owner: The company, entity, or individual that holds title on a
given building or property.
Planned/Proposed: The status of a building that has been
announced for future development but not yet started
construction.
Power Center: The center typically consists of several freestanding (unconnected) anchors and only a minimum amount of small
specialty tenants. 250,000 – 600,000 SF. A Power Center is dominated by several large anchors, including discount department
stores, off-price stores, warehouse clubs, or "category killers," i.e.,

THE COSTAR RETAIL REPORT

C

DENVER – YEAR-END 2009

Denver Retail Market
stores that offer tremendous selection in a particular merchandise
category at low prices.
Preleased Space: The amount of space in a building that has been
leased prior to its construction completion date, or certificate of
occupancy date.
Price/SF: Calculated by dividing the price of a building (either
sales price or asking sales price) by the Rentable Building Area
(RBA).
Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner.
Quoted rental rates may differ from the actual rates paid by
tenants following the negotiation of all terms and conditions in
a specific lease.
RBA: Abbreviation for Rentable Building Area. (See also:
Rentable Building Area)
Region: Core areas containing a large population nucleus, that
together with adjacent communities have a high degree of economic and social integration. Regions are further divided into
market areas, called Markets. (See also: Markets)
Regional Mall: Provides shopping goods, general merchandise,
apparel, and furniture, and home furnishings in full depth and
variety. It is built around the full-line department store with a
minimum GLA of 100,000 square feet, as the major drawing
power. For even greater comparative shopping, two, three, or
more department stores may be included. In theory a regional
center has a GLA of 400,000 square feet, and may range from
300,000 to more than 1,000,000 square feet. Regional centers in
excess of 750,000 square feet GLA with three or more department stores are considered Super Regional. (See also: Super
Regional Mall).
Relet Space: Sometimes called second generation or direct space,
refers to existing space that has previously been occupied by
another tenant.
Rentable Building Area: (RBA) The total square footage of a
building that can be occupied by, or assigned to a tenant for the
purpose of determining a tenant’s rental obligation. Generally
RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets.
Rental Rates: The annual costs of occupancy for a particular
space quoted on a per square foot basis.
Sales Price: The total dollar amount paid for a particular property
at a particular point in time.
Sales Volume: The sum of sales prices for a given group of buildings in a given time period.
Seller: The individual, group, company, or entity that sells a particular commercial real estate asset.
SF: Abbreviation for Square Feet.
Shopping Center: The combined retail center types of Community
Center, Neighborhood Center and Strip Center.
Single-Tenant: Buildings that are occupied, or intended to be
occupied by a single tenant. (See also: Build-to-suit and Tenancy)
Specialty Center: The combined retail center types of Airport
Retail, Outlet Center and Theme/Festival Center.
Sports & Entertainment: A facility suited for recreational activities, including: Amusement Facility, Aquatic Facility/Swimming
Pool, Bowling Alley, Casino/Gaming Facility, Equestrian Center/
Stable, Fitness, Court and Spa Facility, Golf Related, Racetrack,
Skating Rink, Ski Resort, Sports Arena/Stadium, and Theatre/
Performing Art Facility.
Strip Center: A strip center is an attached row of stores or service
outlets managed as a coherent retail entity, with on-site parking
usually located in front of the stores. Open canopies may connect the storefronts, but a strip center does not have enclosed
walkways linking the stores. A strip center may be configured in
D

a straight line, or have an "L" or "U" shape.
Sublease Space: Space that has been leased by a tenant and is
being offered for lease back to the market by the tenant with
the lease obligation. Sublease space is sometimes referred to as
sublet space.
Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each
other and constitute a generally accepted primary competitive
set, or peer group. Submarkets are building type specific (office,
industrial, retail, etc.), with distinct boundaries dependent on
different factors relevant to each building type. Submarkets are
non-overlapping, contiguous geographic designations having a
cumulative sum that matches the boundaries of the Market they
are located within (See also: Market).
Super Regional Mall: Similar to a regional mall, but because of its
larger size, a super regional mall has more anchors, a deeper selection of merchandise, and draws from a larger population base.
As with regional malls, the typical configuration is as an enclosed
mall, frequently with multiple levels (See also: Regional Mall).
Tenancy: A term used to indicate whether or not a building is
occupied by multiple tenants (See also: Multi-tenant) or a single
tenant. (See also: Single-tenant)
Tenant Rep: Tenant Rep stands for Tenant Representative. In a
typical lease transaction between an owner/landlord and tenant,
the broker that represents the interests of the tenant is referred to
as a Tenant Rep.
Theme/Festival Center: These centers typically employ a unifying theme that is carried out by the individual shops in their
architectural design and, to an extent, in their merchandise.
Sometimes the biggest appeal of these centers is to tourists; they
can be anchored by restaurants and entertainment facilities. These
centers, generally located in urban areas, tend to be adapted from
older, sometimes historic, buildings, and can be part of mixed-use
projects. 80,000 – 250,000 SF.
Under Construction: The status of a building that is in the process
of being developed, assembled, built or constructed. A building is
considered to be under construction after it has begun construction and until it receives a certificate of occupancy.
Vacancy Rate: A measurement expressed as a percentage of the
total amount of physically vacant space divided by the total
amount of existing inventory. Under construction space generally
is not included in vacancy calculations.
Vacant Space: Space that is not currently occupied by a tenant,
regardless of any lease obligation that may be on the space.
Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for
by a tenant but not occupied by that tenant, would be considered
vacant space. Likewise, space that has been leased but not yet
occupied because of finish work being done, would also be considered vacant space.
Weighted Average Rental Rate: Rental rates that are calculated by
factoring in, or weighting, the square footage associated with each
particular rental rate. This has the effect of causing rental rates
on larger spaces to affect the average more than that of smaller
spaces. The weighted average rental rate is calculated by taking
the ratio of the square footage associated with the rental rate on
each individual available space to the square footage associated
with rental rates on all available spaces, multiplying the rental rate
by that ratio, and then adding together all the resulting numbers.
Unless specifically specified otherwise, rental rate averages include
both Direct and Sublet available spaces.
Year Built: The year in which a building completed construction
and was issued a certificate of occupancy.
YTD: Abbreviation for Year-to-Date. Describes statistics that are
cumulative from the beginning of a calendar year through whatever time period is being studied.

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
OVERVIEW

Denver’s Vacancy Remains Unchanged at 9.1%
Net Absorption Positive 197,423 SF in the Quarter

T

he Denver retail market did not experience much change
in market conditions in the fourth quarter 2009. The
vacancy rate went from 9.1% in the previous quarter
to 9.1% in the current quarter. Net absorption was positive
197,423 square feet, and vacant sublease space increased by
12,627 square feet. Quoted rental rates decreased from third
quarter 2009 levels, ending at $15.94 per square foot per year. A
total of nine retail buildings with 51,228 square feet of retail space
were delivered to the market in the quarter, with 699,925 square
feet still under construction at the end of the quarter.
Net Absorption
Retail net absorption was slightly positive in Denver fourth
quarter 2009, with positive 197,423 square feet absorbed in
the quarter. In third quarter 2009, net absorption was positive
292,773 square feet, while in second quarter 2009, absorption
came in at positive 266,546 square feet. In first quarter 2009,
negative (288,095) square feet was absorbed in the market.
Tenants moving out of large blocks of space in 2009 include:
Macy’s moving out of 180,000 square feet at Westminster Mall;
and Toyota moving out of 131,290 square feet at Mountain
States Toyota.
Tenants moving into large blocks of space in 2009 include:
Target moving into 175,000 square feet at River Point at
Sheridan; King Soopers moving into 99,844 square feet at Shops
at Quail Creek; and JC Penney moving into 97,990 square feet at
955 S. Hoover St.
Vacancy
Denver’s retail vacancy rate changed in the fourth quarter
2009, ending the quarter at 9.1%. Over the past four quarters,

Vacancy Rates by Building Type
Power Center

the market has seen an overall increase in the vacancy rate, with
the rate going from 8.9% in the first quarter 2009, to 9.0% at
the end of the second quarter 2009, 9.1% at the end of the third
quarter 2009, to 9.1% in the current quarter.
The amount of vacant sublease space in the Denver market
has trended down over the past four quarters. At the end of
the first quarter 2009, there were 906,818 square feet of vacant
sublease space. Currently, there are 747,173 square feet vacant
in the market.
Largest Lease Signings
The largest lease signings occurring in 2009 included: the
99,844-square-foot-lease signed by King Soopers at Shops at
Quail Creek; the 70,000-square-foot-deal signed by Lowe’s at
Alameda Square Shopping Center; and the 39,564-square-footlease signed by Nordstrom Rack at 1505 S Colorado Blvd.
Rental Rates
Average quoted asking rental rates in the Denver retail market are down over previous quarter levels, and down from their
levels four quarters ago. Quoted rents ended the fourth quarter
2009 at $15.94 per square foot per year. That compares to
$16.13 per square foot in the third quarter 2009, and $16.39 per
square foot at the end of the first quarter 2009. This represents a
1.2% decrease in rental rates in the current quarter, and a 2.82%
decrease from four quarters ago.
Inventory & Construction
During the fourth quarter 2009, nine buildings totaling
51,228 square feet were completed in the Denver retail market.
Over the past four quarters, a total of 1,945,907 square feet of
retail space has been built in Denver. In addition to the current

2006-2009

Specialty Center

General Retail

Shopping Center

Mall

Total Market

14%
12%
10%
8%
6%
4%
2%
0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Absorption & Deliveries

©2010 COSTAR GROUP, INC.

Past 10 Quarters

U.S. Vacancy Comparison

THE COSTAR RETAIL REPORT

Past 10 Quarters

1

DENVER – YEAR-END 2009

Denver Retail Market
OVERVIEW

quarter, 28 buildings with 717,306 square feet were completed
in third quarter 2009, 12 buildings totaling 379,161 square feet
completed in second quarter 2009, and 798,212 square feet in 34
buildings completed in first quarter 2009.
There were 699,925 square feet of retail space under construction at the end of the fourth quarter 2009.
Some of the notable 2009 deliveries include: River Point
at Sheridan, a 233,057-square-foot facility that delivered in first
quarter 2009 and is now 75% occupied, and Southglenn Block 8,
a 121,461-square-foot building that delivered in second quarter
2009 and is now 100% occupied.
Total retail inventory in the Denver market area amounted
to 174,988,129 square feet in 9,818 buildings and 1359 centers
as of the end of the fourth quarter 2009.

Shopping Center
The Shopping Center market in Denver currently consists
006-2009 of 1289 projects with 67,317,412 square feet of retail space in
2,443 buildings. In this report the Shopping Center market is
General Retail
Mall
Market
comprisedShopping
of all Center
Community
Center,Total
Neighborhood
Center, and
Strip Centers.
After absorbing 54,853 square feet and delivering 1,411
square feet in the current quarter, the Shopping Center sector saw
the vacancy rate go from 11.0% at the end of the third quarter
2009 to 10.9% this quarter.
Over the past four quarters, the Shopping Center vacancy
rate has gone from 10.7% at the end of the first quarter 2009,
to 10.7% at the end of the second quarter 2009, to 11.0% at the
end of the third quarter 2009, and finally to 10.9% at the end of
the current quarter.
Rental rates ended the fourth quarter 2009 at $15.05 per
square foot, down from the $15.43 they were at the end of third
quarter 2009. Rental rates have trended down over the past year,
2007 4q 2008 1q
2008 2q
2008 3q
2008 4q
2009 1q 2009 2q
2009 3q
2009 4q
going from $15.87 per square foot a year ago to their current
levels.
Net absorption in the Shopping Center sector has totaled

U.S. Vacancy Comparison
Past 10 Quarters
Vacancy Rate

$17
Price in Dollars per Unit

10.0%
9.0%
8.0%

$17
$17

7.0%
6.0%
5.0%
4.0%

$16
$16
$16
$16

3.0%
2.0%
1.0%
0.0%

$16
$15
$15
2007 2007 2008 2008 2008 2008 2009 2009 2009 2009
3q 4q 1q 2q 3q 4q 1q 2q 3q 4q

Vacancy Rate Percentage

Average Rental Rate

(232,402) square feet over the past four quarters. In addition
to the positive 54,853 square feet absorbed this quarter, negative
(205,790) square feet was absorbed in the third quarter 2009,
positive 91,715 square feet was absorbed in the second quarter
2009, and negative (173,180) square feet was absorbed in the
first quarter 2009.
Power Centers
The Power Center average vacancy rate was 13.2% in the
fourth quarter 2009. With negative (85,200) square feet of net
absorption and 8,412 square feet in new deliveries, the vacancy
rate went from 12.7% at the end of last quarter to 13.2% at the
end of the fourth quarter.
In the third quarter 2009, Power Centers absorbed positive
91,765 square feet, delivered 84,715 square feet, and the vacancy
rate went from 12.8% to 12.7% over the course of the quarter.
Rental started the quarter at $23.34 per square foot and ended the
quarter at $22.77 per square foot.
A year ago, in fourth quarter 2008, the vacancy rate
was 12.0%. Over the past four quarters, Power Centers have
absorbed a cumulative 258,761 square feet of space and delivered
cumulative 550,309 square feet of space. Vacant sublease space
has gone from 101,014 square feet to 79,317 square feet over that
time period, and rental rates have gone from $24.24 to $22.83.
At the end of the fourth quarter 2009, there was no space
under construction in the Denver market. The total stock of
Power Center space in Denver currently sits at 17,816,299 square
feet in 42 centers comprised of 350 buildings.
No space was under construction at the end of the fourth
quarter 2009.
General Retail Properties
The General Retail sector of the market, which includes all
freestanding retail buildings, except those contained within a center, reported a vacancy rate of 7.2% at the end of fourth quarter
2009. There was a total of 5,015,763 square feet vacant at that
time. The General Retail sector in Denver currently has average
rental rates of $14.06 per square foot per year. There are 479,753
square feet of space under construction in this sector, with 34,449
square feet having been completed in the fourth quarter. In all,
there are a total of 6,832 buildings with 69,529,628 square feet
of General Retail space in Denver.
Specialty Centers
There are currently seven Specialty Centers in the Denver
market, making up 1,645,164 square feet of retail space. In this
report the Specialty Center market is comprised of Outlet Center,
Airport Retail and Theme/Festival Centers.
Specialty Centers in the Denver market have experienced
negative (13,536) square feet of net absorption in 2009. The
vacancy rate currently stands at 7.5%, and rental rates average
$28.49 per square foot.

Source: CoStar Property•

2

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

4%
2%
YEAR-END 2009 – DENVER
0%

Denver Retail Market

2006 1q

OVERVIEW

Sales Activity
Tallying retail building sales of 15,000 square feet or larger,
Denver retail sales figures rose during the third quarter 2009 in
terms of dollar volume compared to the second quarter of 2009.
In the third quarter, four retail transactions closed with a
total volume of $32,850,000. The four buildings totaled 275,990
square feet and the average price per square foot equated to
$119.03 per square foot. That compares to nine transactions
totaling $32,565,000 in the second quarter 2009. The total
square footage in the second quarter was 421,244 square feet for
an average price per square foot of $77.31.
Total retail center sales activity in 2009 was down compared
to 2008. In the first nine months of 2009, the market saw 18 retail
sales transactions with a total volume of $74,740,000. The price
per square foot averaged $89.57. In the same first nine months of
2008, the market posted 50 transactions with a total volume of
$342,102,700. The price per square foot averaged $152.06.

©2010 COSTAR GROUP, INC.

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

Absorption & Deliveries
Past 10 Quarters
Net Absorption

Deliveries

1.84

2.0
1.5
1.0

Millions SF

Malls
Malls recorded net absorption of positive 58,100 square
feet in the fourth quarter 2009. This net absorption number,
combined with the 6,956 square feet that was built in the quarter,
caused the vacancy rate to go from 5.7% a quarter ago to 5.4%
at the end of the fourth quarter 2009. Rental rates went from
$24.76 per square foot to $23.88 per square foot during that
time. In this report the Mall market is comprised of 21 Lifestyle
Center, Regional Mall and Super Regional Malls.

2006 2q

Source: CoStar Property®

0.91
0.84

0.97

0.85

0.99
0.80

0.72

0.58
0.41

0.37
0.30

0.5

0.38
0.29
0.27

0.20
0.05

0.0
(0.5)

(0.38)

(0.42)

(0.29)

(1.0)
2007
3q

2007
4q

2008
1q

2008
2q

2008
3q

2008
4q

2009
1q

2009
2q

2009
3q

2009
4q

Source: CoStar Property•

Cap rates have been higher in 2009, averaging 7.94% compared to the same period in 2008 when they averaged 7.60%.
One of the largest transactions that has occurred within the
last four quarters in the Denver market is the sale of Market at
Southpark in Littleton. This 190,095 square foot retail center sold
for $22,000,000, or $115.73 per square foot. The property sold
on 8/11/2009.
Reports compiled by: Ethan Reed and Krystal Thomas CoStar Research
Manager.

THE COSTAR RETAIL REPORT

3

2007 4q

DENVER – YEAR-END 2009

Denver Retail Market
MARKETS

CoStar Markets & Submarkets
In analyzing metropolitan areas in the U.S., CoStar has developed geographic designations to help group properties together, called
Regions, Markets and Submarkets. Regions are the equivalent of metropolitan areas, or areas containing a large population nucleus,
that together with adjacent communities have a high degree of economic and social integration. Regions are then divided into
Markets, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting
and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group
of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.
Markets

Submarkets

Aurora

Aurora

Boulder

Boulder

Boulder County

Central Business District

Central Business District

LoDo

Colorado Blvd/Glendale

Cherry Creek

Colorado Blvd/I-25

Glendale

Fort Collins/Loveland

Fort Collins/Loveland

Longmont

Longmont

Midtown

Capitol Hill

Platte River

South Midtown

Broomfield

Broomfield County

Parker/Castle Rock

Parker/Castle Rock

Weld County

Weld County

North Denver

North Denver

Northeast Denver

East I-70/Montbello

Northwest Denver

Northwest Denver

Southeast Denver

Arapahoe Rd
Greenwood Village
Panorama/Highland Park

Southwest Denver

Southwest Denver

Clear Creek County

Clear Creek County

West Denver

West Denver

Elbert County

Elbert County

Gilpin County

Gilpin County

Park County

Park County

4

Northeast Denver

Centennial
Highlands Ranch

THE COSTAR RETAIL REPORT

Denver Tech Center
Inverness

East Hampden
Meridian

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
INVENTORY & DEVELOPMENT

Historical Deliveries

1982 - 2009

Deliveries

8.0

Average Delivered SF

6.9

7.0

6.2

6.1

6.1

Millions of SF

6.0

5.5
5.0

4.8

5.0
4.0

3.5

4.6

3.7

3.5

3.4
2.9

3.0

2.5

2.5

2.5

2.1

2.0

4.6
4.2

3.8

3.7

3.4

3.8

2.9
1.9

1.9

1.3
0.7

1.0
0.0

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: CoStar Property®

* Future deliveries based on current under construction buildings.

Construction Activity

Markets Ranked by Under Construction Square Footage
Under Construction Inventory
Total GLA

# Bldgs

Market

Average Bldg Size

Preleased SF

Preleased %

All Existing

U/C

Broomfield

1

208,752

208,752

100.0%

23,490

208,752

Parker/Castle Rock

4

159,412

50,166

31.5%

20,995

39,853

Fort Collins/Loveland

4

142,139

124,624

87.7%

19,388

35,535

Southwest Denver

1

75,000

0

0.0%

20,607

75,000

Southeast Denver

2

58,278

58,278

100.0%

24,548

29,139

Aurora

2

30,324

30,324

100.0%

19,456

15,162

North Denver

1

11,420

0

0.0%

21,589

11,420

Boulder

1

8,100

0

0.0%

18,218

8,100

Weld County

1

6,500

0

0.0%

13,862

6,500

Colorado Blvd/Glendale

0

0

0

0.0%

13,019

0

All Other

0

0

0

0.0%

15,299

0

17

699,925

472,144

17,823

41,172

Totals

67.5%

Source: CoStar Property®

Recent Deliveries

Future Deliveries

Leased & Un-Leased SF in Deliveries Since 2005

Preleased & Un-Leased SF in Properties Scheduled to Deliver

Leased

7.0

Un-Leased

6.0

Un-Leased

500

Thousands of SF

4.0
3.0
2.0

400

T

5.0
Millions of SF

Preleased

600

300

200

100

1.0
0.0

0
2005

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

2006

2007

2008

2009

2010 1q

2010 2q

2011 2q

Source: CoStar Property®

THE COSTAR RETAIL REPORT

5

DENVER – YEAR-END 2009

Denver Retail Market
INVENTORY & DEVELOPMENT

Historical Construction Starts & Deliveries
Square Footage Per Quarter Starting and Completing Construction
Construction Starts

2.0

Deliveries
1.84

1.8
1.53

1.6

1.41

Millions of SF

1.4

1.25

1.20

1.2

1.04

1.0

0.89

0.8

0.65

0.88

0.84

0.74
0.72

1.06

0.80

0.70
0.53
0.48

0.6

0.72

0.58

0.55
0.37

0.4
0.2

0.99

0.85

0.38

0.33

0.33

0.22

0.38

0.23

0.17
0.05

0.00

0.0
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Recent Deliveries by Project Size of Year-to-Date Development
Building Size

# Bldgs

GLA

SF Leased

% Leased

Avg Rate

Single-Tenant

Multi-Tenant

< 50,000 SF

69

753,649

494,813

65.7%

$25.54

55,051

698,598

50,000 SF - 99,999 SF

11

730,791

634,800

86.9%

$25.09

142,304

588,487

100,000 SF - 249,999 SF

3

461,467

403,203

87.4%

$0.00

0

461,467

250,000 SF - 499,999 SF

0

0

0

0.0%

$0.00

0

0

>= 500,000 SF

0

0

0

0.0%

$0.00

0

0

Source: CoStar Property®

Recent Development by Tenancy

Existing Inventory Comparison

Based on GLA Developed for Single & Multi Tenant Use

Based on Total GLA

2009 Deliveries

Currently Under Construction
General Retail

Shopping Center

10%

54%

46%

Mall

90%

Power Center

Specialty Center
Multi
Source: CoStar Property®

6

Single

Multi

Single

Millions of Square0 Feet 10

20

30

40

50

60

70

80

Source: CoStar Property®

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
INVENTORY & DEVELOPMENT

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©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

7

DENVER – YEAR-END 2009

Denver Retail Market
INVENTORY & DEVELOPMENT

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8

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
FIGURES AT A GLANCE

General Retail Market Statistics
Existing Inventory
Market

# Blds

Year-End 2009
Vacancy

Total GLA

Direct SF

Total SF

YTD Net

YTD

Under

Vac %

Absorption

Deliveries

Const SF

Quoted
Rates

4.6%

(51,504)

0

30,324

$12.54

Aurora

530

6,088,184

237,989

278,329

Boulder

333

4,063,431

211,786

224,671

5.5%

19,694

9,112

8,100

$17.83

Broomfield

112

823,132

11,296

11,296

1.4%

13,008

0

0

$11.74

Central Business District

84

1,785,668

100,677

100,677

5.6%

49,498

63,332

0

$26.11

Clear Creek County

26

246,226

11,215

11,215

4.6%

(11,215)

0

0

$19.23

581

4,421,179

268,778

308,342

7.0%

79,237

0

$18.49

Colorado Blvd/Glendale
Elbert County
Fort Collins/Loveland

485

14

246,043

7,000

7,000

2.8%

(7,000)

0

0

$0.00

585

6,709,034

500,628

532,323

7.9%

(92,948)

6,535

142,139

$11.81

4

12,611

0

0

0.0%

0

0

0

$0.00

Longmont

238

2,485,840

196,198

197,423

7.9%

10,315

0

0

$11.88

Midtown

559

4,447,537

339,430

339,430

7.6%

(41,509)

19,100

0

$15.17

North Denver

266

3,546,928

220,254

220,254

6.2%

22,346

12,476

0

$11.59

Northeast Denver

402

3,189,880

152,684

152,684

4.8%

56,823

22,270

0

$14.70

Northwest Denver

672

6,187,964

418,950

551,177

8.9%

72

17,136

0

$10.57

Gilpin County

22

85,238

6,184

6,184

7.3%

(6,184)

0

0

$0.00

Parker/Castle Rock

212

2,704,128

188,701

191,687

7.1%

(8,223)

9,130

159,412

$23.19

Southeast Denver

468

7,202,386

433,185

438,238

6.1%

56,647

130,027

58,278

$14.28

Southwest Denver

612

5,740,730

241,965

293,026

5.1%

(65,953)

15,876

75,000

$14.42

Weld County

513

4,819,954

505,756

672,209

13.9%

21,283

144,834

6,500

$10.60

West Denver

599

4,723,535

466,098

479,598

10.2%

(149,112)

5,602

0

$12.97

7.2%

(183,477)

Park County

Totals

6,832

69,529,628

4,518,774

5,015,763

534,667

479,753

$14.06

Source: CoStar Property®

Mall Market Statistics

Year-End 2009

Existing Inventory
Market

# Ctrs

Vacancy

Total GLA

Direct SF

Total SF

Vac %

YTD Net

YTD

Under

Absorption

Deliveries

Const SF

0

0

$0.00

0

0

$31.93

0

Quoted
Rates

Aurora

1

1,084,483

0

0

0.0%

Boulder

1

792,007

35,579

35,579

4.5%

Broomfield

2

1,830,117

48,005

48,005

2.6%

207,580

0

0

$28.00

Central Business District

0

0

0

0

0.0%

0

0

0

$0.00

Clear Creek County

0

0

0

0

0.0%

0

0

0

$0.00

Colorado Blvd/Glendale

3

1,327,532

8,831

8,831

0.7%

0

0

$0.00

Elbert County

0

0

0

0

0.0%

0

0

0

$0.00

Fort Collins/Loveland

3

2,881,890

121,792

121,792

4.2%

58,965

36,166

0

$20.25

(2,794)

(6,410)

Gilpin County

0

0

0

0

0.0%

0

0

0

$0.00

Longmont

1

462,653

81,886

81,886

17.7%

0

0

0

$0.00

Midtown

0

0

0

0

0.0%

0

0

0

$0.00

North Denver

1

656,084

122,650

122,650

18.7%

35,750

27,000

0

$0.00

Northeast Denver

0

0

0

0

0.0%

0

0

0

$0.00

Northwest Denver

2

2,105,538

374,311

374,311

17.8%

0

0

$17.00

(139,605)

Park County

0

0

0

0

0.0%

0

0

0

$0.00

Parker/Castle Rock

1

202,683

5,688

5,688

2.8%

5,113

0

0

$19.58

Southeast Denver

2

2,781,659

128,527

128,527

4.6%

480,702

577,033

0

$32.00

Southwest Denver

2

2,814,816

75,994

75,994

2.7%

0

0

0

$11.00

Weld County

1

637,172

0

0

0.0%

0

0

0

$0.00

West Denver

1

1,102,992

12,500

12,500

1.1%

0

0

0

Totals

21

18,679,626

1,015,763

1,015,763

5.4%

639,301

640,199

0

$0.00
$23.88

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

9

DENVER – YEAR-END 2009

Denver Retail Market
FIGURES AT A GLANCE

Power Center Market Statistics

Year-End 2009

Existing Inventory
Market

# Ctrs

Vacancy

Total GLA

Direct SF

Total SF

Aurora

3

927,533

185,489

191,639

Vac %

YTD Net

YTD

Under

Absorption

Deliveries

Const SF

Rates

254,320

0

$19.37

20.7%

76,501

Quoted

Boulder

1

532,922

29,104

29,104

5.5%

(10,022)

0

0

$0.00

Broomfield

1

390,598

71,923

76,037

19.5%

(10,203)

0

0

$15.27

Central Business District

0

0

0

0

0.0%

0

0

0

$0.00

Clear Creek County

0

0

0

0

0.0%

0

0

0

$0.00

Colorado Blvd/Glendale

1

85,431

0

0

0.0%

0

0

0

$0.00

Elbert County

0

0

0

0

0.0%

0

0

0

$0.00

Fort Collins/Loveland

4

1,405,703

57,052

57,052

4.1%

0

0

$23.92

(12,723)

Gilpin County

0

0

0

0

0.0%

0

0

0

$0.00

Longmont

1

656,999

68,252

68,252

10.4%

6,955

8,412

0

$27.02

0

Midtown

0

0

0

0

0.0%

0

0

$0.00

North Denver

5

2,007,371

205,234

207,824

10.4%

(19,985)

0

0

$16.23

Northeast Denver

4

3,646,234

967,333

967,333

26.5%

(28,865)

0

0

$28.91

Northwest Denver

3

1,341,095

175,080

175,080

13.1%

(9,518)

0

0

$13.12

0

0

$0.00

0

0

$16.01

Park County

0

0

0

0

0.0%

Parker/Castle Rock

3

700,563

58,096

58,096

8.3%

Southeast Denver

3

1,280,736

143,516

175,198

13.7%

(16,263)

0

0

$21.76

Southwest Denver

7

3,124,347

261,777

296,558

9.5%

267,032

287,577

0

$17.11

Weld County

3

610,383

17,025

17,025

2.8%

21,191

0

0

$18.00

West Denver

3

1,106,384

36,109

36,109

3.3%

(3,623)

0

0

$15.69

13.2%

258,761

Totals

42

17,816,299

2,275,990

2,355,307

0
(1,716)

550,309

0

$22.83

Source: CoStar Property®

Shopping Center Market Statistics
Existing Inventory
Market

# Ctrs

Year-End 2009

Vacancy

Total GLA

Direct SF

Total SF

Vac %

YTD Net

YTD

Under

Absorption

Deliveries

Const SF

Rates

6,387

0

$12.69

Aurora

138

8,340,474

1,223,475

1,245,468

14.9%

20,778

Boulder

67

3,038,049

248,847

281,976

9.3%

(15,011)

Broomfield

21

1,983,045

175,131

182,631

9.2%

58,992

Central Business District

9

604,496

136,911

136,911

22.6%

(21,275)

Clear Creek County

0

0

0

0

0.0%

89

3,773,924

288,821

288,821

Colorado Blvd/Glendale

Quoted

0

0

$16.26

104,791

208,752

$18.27

0

0

$22.45

0

0

0

$0.00

7.7%

22,532

0

0

$23.63

2

135,394

11,335

11,335

8.4%

(11,335)

0

0

$11.28

93

4,611,668

473,133

473,133

10.3%

(76,332)

0

0

$14.55

0

0

0

0

0.0%

0

0

0

$0.00

Longmont

45

1,952,067

146,717

146,717

7.5%

7,223

0

0

$14.93

Midtown

35

449,201

52,482

52,482

11.7%

31

0

0

$16.82

North Denver

72

3,936,338

390,876

395,572

10.0%

(15,398)

0

11,420

$12.12

Northeast Denver

56

2,174,781

266,286

271,188

12.5%

(30,357)

0

0

$16.65

Northwest Denver

149

7,877,391

888,587

905,874

11.5%

(26,367)

19,154

0

$13.51

Elbert County
Fort Collins/Loveland
Gilpin County

0

0

0

0

0.0%

0

0

0

$0.00

Parker/Castle Rock

72

4,345,219

372,834

377,574

8.7%

1,341

34,632

0

$17.91

Southeast Denver

107

7,289,978

816,441

841,242

11.5%

(69,340)

0

0

$16.64

Southwest Denver

152

7,962,772

807,359

823,395

10.3%

42,296

0

0

$14.24

Weld County

59

2,665,727

261,028

261,028

9.8%

(40,957)

3,768

0

$13.64

West Denver

123

6,176,888

642,191

647,564

10.5%

(79,223)

52,000

0

$15.56

10.9%

(232,402)

220,732

Park County

Totals

1,289

67,317,412

7,202,454

7,342,911

220,172

$15.05

Source: CoStar Property®

10

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
FIGURES AT A GLANCE

Specialty Center Market Statistics
Existing Inventory
Market

# Ctrs

Year-End 2009

Vacancy

Total GLA

Direct SF

Total SF

Vac %

Aurora

0

0

0

0

0.0%

Boulder

1

81,559

27,161

52,981

65.0%

YTD Net

YTD

Under

Absorption

Deliveries

Const SF

0

0

$0.00

0

0

$23.58

0
(110)

Quoted
Rates

Broomfield

0

0

0

0

0.0%

0

0

0

$0.00

Central Business District

1

421,877

40,913

40,913

9.7%

10,549

0

0

$39.81

Clear Creek County

0

0

0

0

0.0%

0

0

0

$0.00

Colorado Blvd/Glendale

0

0

0

0

0.0%

0

0

0

$0.00

Elbert County

0

0

0

0

0.0%

0

0

0

$0.00

Fort Collins/Loveland

1

328,824

5,500

5,500

1.7%

0

0

0

$15.00

Gilpin County

0

0

0

0

0.0%

0

0

0

$0.00

Longmont

1

12,550

0

0

0.0%

0

0

0

$0.00

Midtown

0

0

0

0

0.0%

0

0

0

$0.00

North Denver

0

0

0

0

0.0%

0

0

0

$0.00

Northeast Denver

0

0

0

0

0.0%

0

0

0

$0.00

Northwest Denver

0

0

0

0

0.0%

0

0

0

$0.00

Park County

0

0

0

0

0.0%

0

0

0

$0.00

Parker/Castle Rock

1

487,363

10,000

10,000

2.1%

(10,000)

0

0

$0.00

Southeast Denver

1

28,325

10,000

14,590

51.5%

(14,590)

0

0

$21.00

Southwest Denver

1

284,666

0

0

0.0%

615

0

0

$12.00

Weld County

0

0

0

0

0.0%

0

0

0

$0.00

West Denver

0

0

0

0

0.0%

0

0

0

Totals

7

1,645,164

93,574

123,984

7.5%

0

(13,536)

0

$0.00
$28.49

Source: CoStar Property®

Total Retail Market Statistics

Year-End 2009

Existing Inventory
Market

# Blds

Total GLA

Vacancy
Direct SF

Total SF

Vac %

YTD Net

YTD

Under

Absorption

Deliveries

Const SF

Rates

260,707

30,324

$13.36

Aurora

845

16,440,674

1,646,953

1,715,436

10.4%

Boulder

467

8,507,968

552,477

624,311

7.3%

9,112

8,100

$17.35

Broomfield

214

5,026,892

306,355

317,969

6.3%

269,377

104,791

208,752

$17.58

Central Business District

97

2,812,041

278,501

278,501

9.9%

38,772

63,332

0

$26.29

Clear Creek County

26

246,226

11,215

11,215

4.6%

(11,215)

0

0

$19.23

738

9,608,066

566,430

605,994

6.3%

16,607

79,237

0

$20.60

Colorado Blvd/Glendale

45,775

Quoted

(8,243)

16

381,437

18,335

18,335

4.8%

(18,335)

0

0

$11.28

822

15,937,119

1,158,105

1,189,800

7.5%

(123,038)

42,701

142,139

$14.00

4

12,611

0

0

0.0%

0

0

0

$0.00

Longmont

327

5,570,109

493,053

494,278

8.9%

24,493

8,412

0

$14.36

Midtown

597

4,896,738

391,912

391,912

8.0%

(41,478)

19,100

0

$15.50

North Denver

470

10,146,721

939,014

946,300

9.3%

22,713

39,476

11,420

$12.48

Northeast Denver

569

9,010,895

1,386,303

1,391,205

15.4%

(2,399)

22,270

0

$24.43

Northwest Denver

1,001

17,511,988

1,856,928

2,006,442

11.5%

(175,418)

36,290

0

$12.75

Elbert County
Fort Collins/Loveland
Gilpin County

22

85,238

6,184

6,184

7.3%

(6,184)

0

0

$0.00

Parker/Castle Rock

402

8,439,956

635,319

643,045

7.6%

(13,485)

43,762

159,412

$19.73

Southeast Denver

757

18,583,084

1,531,669

1,597,795

8.6%

437,156

707,060

58,278

$17.19

Southwest Denver

967

19,927,331

1,387,095

1,488,973

7.5%

243,990

303,453

75,000

$14.66

Weld County

630

8,733,236

783,809

950,262

10.9%

1,517

148,602

6,500

$11.92

West Denver

847

13,109,799

1,156,898

1,175,771

9.0%

(231,958)

57,602

0

$14.55

9.1%

468,647

Park County

Totals

9,818

174,988,129

15,106,555

15,853,728

1,945,907

699,925

$15.94

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

11

DENVER – YEAR-END 2009

Denver Retail Market
FIGURES AT A GLANCE

General Retail Submarket Statistics
Existing Inventory
Market

# Blds

Total GLA

Year-End 2009

Vacancy
Direct SF

Total SF

Vac %

YTD Net

YTD

Under

Absorption

Deliveries

Const SF

Quoted
Rates

79

1,064,422

100,704

100,704

9.5%

(85,379)

4,125

0

$9.95

Aurora

530

6,088,184

237,989

278,329

4.6%

(51,504)

0

30,324

$12.54

Boulder

245

2,638,813

138,807

144,807

5.5%

17,264

9,112

8,100

$19.42

88

1,424,618

72,979

79,864

5.6%

2,430

0

0

$12.60

Broomfield County

112

823,132

11,296

11,296

1.4%

13,008

0

0

$11.74

Capitol Hill

166

1,398,966

131,272

131,272

9.4%

(40,924)

0

0

$15.63

Centennial

29

460,289

48,523

48,523

10.5%

(15,555)

0

12,778

$20.90

Central Business District

56

1,180,198

100,677

100,677

8.5%

40,998

63,332

0

$27.21

129

878,184

84,373

84,373

9.6%

(2,882)

19,000

0

$25.87

Clear Creek County

26

246,226

11,215

11,215

4.6%

(11,215)

0

0

$19.23

Colorado Blvd/I-25

316

2,155,523

68,574

108,138

5.0%

14,218

21,469

0

$17.05

Denver Tech Center

54

1,130,278

52,407

52,407

4.6%

8,955

24,715

0

$19.00

East Hampden

102

1,018,676

46,336

46,336

4.5%

32,847

9,547

0

$12.33

East I-70/Montbello

179

1,423,460

55,545

55,545

3.9%

56,231

12,700

0

$15.02

14

246,043

7,000

7,000

2.8%

(7,000)

0

0

$0.00

585

6,709,034

500,628

532,323

7.9%

(92,948)

6,535

142,139

$11.81

4

12,611

0

0

0.0%

0

0

$0.00

136

1,387,472

115,831

115,831

8.3%

(10,851)

38,768

0

$14.27

36

382,278

3,100

3,100

0.8%

1,800

0

0

$10.00

102

1,854,670

68,877

73,930

4.0%

(19,620)

0

45,500

$17.06

6

81,224

21,427

21,427

26.4%

4,484

0

0

$20.50

28

605,470

0

0

0.0%

8,500

0

0

$17.18

238

2,485,840

196,198

197,423

7.9%

10,315

0

0

$11.88

44

808,660

12,400

12,400

1.5%

87,815

91,640

0

$20.59

North Denver

266

3,546,928

220,254

220,254

6.2%

22,346

12,476

0

$11.59

Northeast Denver

223

1,766,420

97,139

97,139

5.5%

592

9,570

0

$13.56

Northwest Denver

672

6,187,964

418,950

551,177

8.9%

72

17,136

0

$10.57

Panorama/Highland Park

16

401,889

79,411

79,411

19.8%

41,300

0

0

$10.38

Park County

22

85,238

6,184

6,184

7.3%

(6,184)

0

0

$0.00

Parker/Castle Rock

212

2,704,128

188,701

191,687

7.1%

(8,223)

9,130

159,412

$23.19

Platte River

130

863,356

74,515

74,515

8.6%

13,901

19,100

0

$16.22

South Midtown

263

2,185,215

133,643

133,643

6.1%

(14,486)

0

0

$14.26

Southwest Denver

612

5,740,730

241,965

293,026

5.1%

(65,953)

15,876

75,000

$14.42

Weld County

513

4,819,954

505,756

672,209

13.9%

21,283

144,834

6,500

$10.60

West Denver

599

4,723,535

466,098

479,598

10.2%

(149,112)

5,602

0

$12.97

7.2%

(183,477)

Arapahoe Rd

Boulder County

Cherry Creek

Elbert County
Fort Collins/Loveland
Gilpin County
Glendale
Greenwood Village
Highlands Ranch
Inverness
LoDo
Longmont
Meridian

Totals

6,832

69,529,628

4,518,774

5,015,763

0

534,667

479,753

$14.06

Source: CoStar Property®

12

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
FIGURES AT A GLANCE

Mall Submarket Statistics

Year-End 2009

Existing Inventory
Market

# Ctrs

Vacancy

Total GLA

Direct SF

Total SF

YTD Net

YTD

Under

Vac %

Absorption

Deliveries

Const SF

Quoted
Rates

Arapahoe Rd

1

1,149,451

80,248

80,248

7.0%

496,785

577,033

0

$32.00

Aurora

1

1,084,483

0

0

0.0%

0

0

0

$0.00

Boulder

1

792,007

35,579

35,579

4.5%

0

0

$31.93

Boulder County

0

0

0

0

0.0%

0

0

0

$0.00

Broomfield County

2

1,830,117

48,005

48,005

2.6%

207,580

0

0

$28.00

Capitol Hill

0

0

0

0

0.0%

0

0

0

$0.00

Centennial

0

0

0

0

0.0%

0

0

0

$0.00

Central Business District

0

0

0

0

0.0%

0

0

0

$0.00

Cherry Creek

3

1,327,532

8,831

8,831

0.7%

0

0

$0.00

Clear Creek County

0

0

0

0

0.0%

0

0

0

$0.00

Colorado Blvd/I-25

0

0

0

0

0.0%

0

0

0

$0.00

Denver Tech Center

0

0

0

0

0.0%

0

0

0

$0.00

East Hampden

0

0

0

0

0.0%

0

0

0

$0.00

East I-70/Montbello

0

0

0

0

0.0%

0

0

0

$0.00

Elbert County

0

0

0

0

0.0%

0

0

0

$0.00

Fort Collins/Loveland

3

2,881,890

121,792

121,792

4.2%

58,965

36,166

0

$20.25

Gilpin County

0

0

0

0

0.0%

0

0

0

$0.00

Glendale

0

0

0

0

0.0%

0

0

0

$0.00

Greenwood Village

0

0

0

0

0.0%

0

0

0

$0.00

Highlands Ranch

1

1,632,208

48,279

48,279

3.0%

0

0

$0.00

Inverness

0

0

0

0

0.0%

0

0

0

$0.00

LoDo

0

0

0

0

0.0%

0

0

0

$0.00

Longmont

1

462,653

81,886

81,886

17.7%

0

0

0

$0.00

Meridian

0

0

0

0

0.0%

0

0

0

$0.00

North Denver

1

656,084

122,650

122,650

18.7%

35,750

27,000

0

$0.00

Northeast Denver

0

0

0

0

0.0%

0

0

0

$0.00

Northwest Denver

2

2,105,538

374,311

374,311

17.8%

0

0

$17.00

Panorama/Highland Park

0

0

0

0

0.0%

0

0

0

$0.00

Park County

0

0

0

0

0.0%

0

0

0

$0.00

Parker/Castle Rock

1

202,683

5,688

5,688

2.8%

5,113

0

0

$19.58

Platte River

0

0

0

0

0.0%

0

0

0

$0.00

South Midtown

0

0

0

0

0.0%

0

0

0

$0.00

Southwest Denver

2

2,814,816

75,994

75,994

2.7%

0

0

0

$11.00

Weld County

1

637,172

0

0

0.0%

0

0

0

$0.00

West Denver

1

1,102,992

12,500

12,500

1.1%

0

0

0

$0.00

Totals

21

18,679,626

1,015,763

1,015,763

5.4%

(2,794)

(6,410)

(16,083)

(139,605)

639,301

640,199

0

$23.88

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

13

DENVER – YEAR-END 2009

Denver Retail Market
FIGURES AT A GLANCE

Power Center Submarket Statistics
Existing Inventory
Market

# Ctrs

Year-End 2009

Vacancy

Total GLA

Direct SF

Total SF

YTD Net

YTD

Under

Quoted

Vac %

Absorption

Deliveries

Const SF

Rates

Arapahoe Rd

0

0

0

0

0.0%

0

0

0

$0.00

Aurora

3

927,533

185,489

191,639

20.7%

76,501

254,320

0

$19.37

Boulder

0

0

0

0

0.0%

0

0

0

$0.00

Boulder County

1

532,922

29,104

29,104

5.5%

(10,022)

0

0

$0.00

Broomfield County

1

390,598

71,923

76,037

19.5%

(10,203)

0

0

$15.27

Capitol Hill

0

0

0

0

0.0%

0

0

0

$0.00

Centennial

0

0

0

0

0.0%

0

0

0

$0.00

Central Business District

0

0

0

0

0.0%

0

0

0

$0.00

Cherry Creek

0

0

0

0

0.0%

0

0

0

$0.00

Clear Creek County

0

0

0

0

0.0%

0

0

0

$0.00

Colorado Blvd/I-25

1

85,431

0

0

0.0%

0

0

0

$0.00

Denver Tech Center

0

0

0

0

0.0%

0

0

0

$0.00

East Hampden

0

36,220

0

0

0.0%

0

0

0

$0.00

East I-70/Montbello

3

2,325,354

217,333

217,333

9.3%

0

0

$22.24

Elbert County

0

0

0

0

0.0%

0

0

$0.00

Fort Collins/Loveland

4

1,405,703

57,052

57,052

4.1%

0

0

$23.92

Gilpin County

0

0

0

0

0.0%

0

0

0

$0.00

Glendale

0

0

0

0

0.0%

0

0

0

$0.00

Greenwood Village

1

209,210

24,216

24,216

11.6%

(1,200)

0

0

$29.50

Highlands Ranch

1

363,560

71,363

71,363

19.6%

13,500

0

0

$17.93

Inverness

0

0

0

0

0.0%

0

0

0

$0.00

LoDo

0

0

0

0

0.0%

0

0

0

$0.00

Longmont

1

656,999

68,252

68,252

10.4%

6,955

8,412

0

$27.02

Meridian

0

0

0

0

0.0%

0

0

0

$0.00

North Denver

5

2,007,371

205,234

207,824

10.4%

(19,985)

0

0

$16.23

Northeast Denver

1

1,320,880

750,000

750,000

56.8%

5,300

0

0

$30.00

Northwest Denver

3

1,341,095

175,080

175,080

13.1%

(9,518)

0

0

$13.12

Panorama/Highland Park

1

671,746

47,937

79,619

11.9%

(28,563)

0

0

$23.29

Park County

0

0

0

0

0.0%

0

0

$0.00

Parker/Castle Rock

3

700,563

58,096

58,096

8.3%

0

0

$16.01

Platte River

0

0

0

0

0.0%

0

0

0

$0.00

South Midtown

0

0

0

0

0.0%

0

0

0

$0.00

Southwest Denver

7

3,124,347

261,777

296,558

9.5%

267,032

287,577

0

$17.11

Weld County

3

610,383

17,025

17,025

2.8%

21,191

0

0

$18.00

0

0

$15.69

West Denver
Totals

3
42

1,106,384
17,816,299

36,109
2,275,990

36,109
2,355,307

(34,165)
0
(12,723)

0
(1,716)

3.3%

(3,623)

13.2%

258,761

550,309

0

$22.83

Source: CoStar Property®

14

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
FIGURES AT A GLANCE

Shopping Center Submarket Statistics
Existing Inventory
Market

# Ctrs

Year-End 2009

Vacancy

Total GLA

Direct SF

Total SF

Vac %

YTD Net

YTD

Under

Quoted

Absorption

Deliveries

Const SF

Rates

0

0

$16.75

6,387

0

$12.69

22

1,973,691

208,170

208,170

10.5%

(20,807)

Aurora

138

8,340,474

1,223,475

1,245,468

14.9%

20,778

Boulder

55

2,670,556

219,824

252,953

9.5%

(30,166)

0

0

$15.98

Boulder County

12

367,493

29,023

29,023

7.9%

15,155

0

0

$18.61

Broomfield County

21

1,983,045

175,131

182,631

9.2%

58,992

104,791

208,752

$18.27

Capitol Hill

19

208,107

14,312

14,312

6.9%

3,000

0

0

$16.02

Centennial

3

67,350

32,518

32,518

48.3%

0

0

0

$29.07

Central Business District

7

292,659

136,911

136,911

46.8%

(21,275)

0

0

$22.45

15

378,540

48,249

48,249

12.7%

(8,165)

0

0

$28.10

Clear Creek County

0

0

0

0

0.0%

0

0

0

$0.00

Colorado Blvd/I-25

37

1,748,305

161,614

161,614

9.2%

33,956

0

0

$23.39

Denver Tech Center

16

873,756

160,005

160,005

18.3%

8,896

0

0

$12.44

East Hampden

22

1,381,999

133,176

157,977

11.4%

(45,784)

0

0

$11.35

East I-70/Montbello

32

1,315,015

157,774

161,269

12.3%

(24,590)

0

0

$18.23

2

135,394

11,335

11,335

8.4%

(11,335)

0

0

$11.28

93

4,611,668

473,133

473,133

10.3%

(76,332)

0

0

$14.55

0

0

0

0

0.0%

0

0

$0.00

37

1,647,079

78,958

78,958

4.8%

(3,259)

0

0

$19.11

6

362,179

78,219

78,219

21.6%

(4,876)

0

0

$29.86

22

1,775,821

92,809

92,809

5.2%

27,834

0

0

$15.67

Inverness

1

256,504

68,548

68,548

26.7%

(15,711)

0

0

$17.00

LoDo

2

311,837

0

0

0.0%

0

0

0

$0.00

Longmont

45

1,952,067

146,717

146,717

7.5%

7,223

0

0

$14.93

Meridian

10

202,561

20,123

20,123

9.9%

(9,412)

0

0

$25.67

North Denver

72

3,936,338

390,876

395,572

10.0%

(15,398)

0

11,420

$12.12

Northeast Denver

24

859,766

108,512

109,919

12.8%

(5,767)

0

0

$13.61

Northwest Denver

149

7,877,391

888,587

905,874

11.5%

(26,367)

19,154

0

$13.51

Panorama/Highland Park

5

396,117

22,873

22,873

5.8%

(9,480)

0

0

$16.54

Park County

0

0

0

0

0.0%

0

0

0

$0.00

72

4,345,219

372,834

377,574

8.7%

1,341

34,632

0

$17.91

Platte River

7

99,371

13,088

13,088

13.2%

(4,192)

0

0

$17.91

South Midtown

9

141,723

25,082

25,082

17.7%

1,223

0

0

$16.96

152

7,962,772

807,359

823,395

10.3%

42,296

0

0

$14.24

59

2,665,727

261,028

261,028

9.8%

(40,957)

3,768

0

$13.64

0

$15.56

Arapahoe Rd

Cherry Creek

Elbert County
Fort Collins/Loveland
Gilpin County
Glendale
Greenwood Village
Highlands Ranch

Parker/Castle Rock

Southwest Denver
Weld County
West Denver
Totals

123
1,289

6,176,888
67,317,412

642,191
7,202,454

647,564
7,342,911

0

10.5%

(79,223)

52,000

10.9%

(232,402)

220,732

220,172

$15.05

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

15

DENVER – YEAR-END 2009

Denver Retail Market
FIGURES AT A GLANCE

Specialty Center Submarket Statistics
Existing Inventory
Market

# Ctrs

Year-End 2009

Vacancy

Total GLA

Direct SF

Total SF

YTD Net

YTD

Under

Quoted

Vac %

Absorption

Deliveries

Const SF

Rates

Arapahoe Rd

0

0

0

0

0.0%

0

0

0

$0.00

Aurora

0

0

0

0

0.0%

0

0

0

$0.00

Boulder

1

81,559

27,161

52,981

65.0%

0

0

$23.58

Boulder County

0

0

0

0

0.0%

0

0

0

$0.00

Broomfield County

0

0

0

0

0.0%

0

0

0

$0.00

Capitol Hill

0

0

0

0

0.0%

0

0

0

$0.00

Centennial

0

0

0

0

0.0%

0

0

0

$0.00

Central Business District

1

421,877

40,913

40,913

9.7%

10,549

0

0

$39.81

Cherry Creek

0

0

0

0

0.0%

0

0

0

$0.00

Clear Creek County

0

0

0

0

0.0%

0

0

0

$0.00

Colorado Blvd/I-25

0

0

0

0

0.0%

0

0

0

$0.00

Denver Tech Center

0

0

0

0

0.0%

0

0

0

$0.00

East Hampden

0

0

0

0

0.0%

0

0

0

$0.00

East I-70/Montbello

0

0

0

0

0.0%

0

0

0

$0.00

Elbert County

0

0

0

0

0.0%

0

0

0

$0.00

Fort Collins/Loveland

1

328,824

5,500

5,500

1.7%

0

0

0

$15.00

Gilpin County

0

0

0

0

0.0%

0

0

0

$0.00

Glendale

0

0

0

0

0.0%

0

0

0

$0.00

Greenwood Village

0

0

0

0

0.0%

0

0

0

$0.00

Highlands Ranch

0

0

0

0

0.0%

0

0

0

$0.00

Inverness

0

0

0

0

0.0%

0

0

0

$0.00

LoDo

0

0

0

0

0.0%

0

0

0

$0.00

Longmont

1

12,550

0

0

0.0%

0

0

0

$0.00

Meridian

1

28,325

10,000

14,590

51.5%

0

0

$21.00

North Denver

0

0

0

0

0.0%

0

0

0

$0.00

Northeast Denver

0

0

0

0

0.0%

0

0

0

$0.00

Northwest Denver

0

0

0

0

0.0%

0

0

0

$0.00

Panorama/Highland Park

0

0

0

0

0.0%

0

0

0

$0.00

Park County

0

0

0

0

0.0%

0

0

0

$0.00

Parker/Castle Rock

1

487,363

10,000

10,000

2.1%

0

0

$0.00

Platte River

0

0

0

0

0.0%

0

0

0

$0.00

South Midtown

0

0

0

0

0.0%

0

0

0

$0.00

Southwest Denver

1

284,666

0

0

0.0%

615

0

0

$12.00

Weld County

0

0

0

0

0.0%

0

0

0

$0.00

West Denver

0

0

0

0

0.0%

0

0

0

$0.00

Totals

7

1,645,164

93,574

123,984

7.5%

(110)

(14,590)

(10,000)

(13,536)

0

0

$28.49

Source: CoStar Property®

16

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
FIGURES AT A GLANCE

Total Retail Submarket Statistics
Existing Inventory
Market

# Blds

Total GLA

Year-End 2009

Vacancy
Direct SF

Total SF

YTD Net

YTD

Under

Quoted

Vac %

Absorption

Deliveries

Const SF

Rates

Arapahoe Rd

152

4,187,564

389,122

389,122

9.3%

390,599

581,158

0

$18.13

Aurora

845

16,440,674

1,646,953

1,715,436

10.4%

45,775

260,707

30,324

$13.36

Boulder

343

6,182,935

421,371

486,320

7.9%

(15,806)

9,112

8,100

$17.73

Boulder County

124

2,325,033

131,106

137,991

5.9%

7,563

0

0

$15.14

Broomfield County

214

5,026,892

306,355

317,969

6.3%

269,377

104,791

208,752

$17.58

Capitol Hill

185

1,607,073

145,584

145,584

9.1%

(37,924)

0

0

$15.72

Centennial

33

527,639

81,041

81,041

15.4%

(15,555)

0

12,778

$25.41

Central Business District

67

1,894,734

278,501

278,501

14.7%

30,272

63,332

0

$26.69

157

2,584,256

141,453

141,453

5.5%

(17,457)

19,000

0

$26.89

Clear Creek County

26

246,226

11,215

11,215

4.6%

(11,215)

0

0

$19.23

Colorado Blvd/I-25

384

3,989,259

230,188

269,752

6.8%

48,174

21,469

0

$19.48

Denver Tech Center

77

2,004,034

212,412

212,412

10.6%

17,851

24,715

0

$13.51

East Hampden

144

2,436,895

179,512

204,313

8.4%

(12,937)

9,547

0

$11.58

East I-70/Montbello

297

5,063,829

430,652

434,147

8.6%

(2,524)

12,700

0

$18.49

16

381,437

18,335

18,335

4.8%

(18,335)

0

0

$11.28

822

15,937,119

1,158,105

1,189,800

7.5%

(123,038)

42,701

142,139

$14.00

4

12,611

0

0

0.0%

0

0

$0.00

197

3,034,551

194,789

194,789

6.4%

(14,110)

38,768

0

$16.28

63

953,667

105,535

105,535

11.1%

(4,276)

0

0

$26.92

177

5,626,259

281,328

286,381

5.1%

5,631

0

45,500

$16.66

Inverness

14

337,728

89,975

89,975

26.6%

(11,227)

0

0

$18.32

LoDo

30

917,307

0

0

0.0%

8,500

0

0

$17.18

327

5,570,109

493,053

494,278

8.9%

24,493

8,412

0

$14.36

57

1,039,546

42,523

47,113

4.5%

63,813

91,640

0

$22.50

North Denver

470

10,146,721

939,014

946,300

9.3%

22,713

39,476

11,420

$12.48

Northeast Denver

272

3,947,066

955,651

957,058

24.2%

125

9,570

0

$27.41

Northwest Denver

1,001

17,511,988

1,856,928

2,006,442

11.5%

36,290

0

$12.75

Panorama/Highland Park

40

1,469,752

150,221

181,903

12.4%

3,257

0

0

$15.44

Park County

22

85,238

6,184

6,184

7.3%

(6,184)

0

0

$0.00

Parker/Castle Rock

402

8,439,956

635,319

643,045

7.6%

(13,485)

43,762

159,412

$19.73

Platte River

139

962,727

87,603

87,603

9.1%

9,709

19,100

0

$16.59

South Midtown

273

2,326,938

158,725

158,725

6.8%

(13,263)

0

0

$14.73

Southwest Denver

967

19,927,331

1,387,095

1,488,973

7.5%

243,990

303,453

75,000

$14.66

Weld County

630

8,733,236

783,809

950,262

10.9%

1,517

148,602

6,500

$11.92

West Denver

847

13,109,799

1,156,898

1,175,771

9.0%

(231,958)

57,602

0

$14.55

9.1%

468,647

Cherry Creek

Elbert County
Fort Collins/Loveland
Gilpin County
Glendale
Greenwood Village
Highlands Ranch

Longmont
Meridian

Totals

9,818

174,988,129

15,106,555

15,853,728

0

(175,418)

1,945,907

699,925

$15.94

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

17

DENVER – YEAR-END 2009

Denver Retail Market
FIGURES AT A GLANCE

General Retail Market Statistics
Existing Inventory
Period

# Blds

2009 4q
2009 3q
2009 2q
2009 1q
2008 4q
2008 3q
2008 2q
2008 1q
2007 4q
2007 3q
2007 2q
2007 1q
2006 4q
2006 3q
2006 2q
2006 1q

6,832
6,828
6,817
6,813
6,796
6,774
6,756
6,739
6,727
6,718
6,697
6,684
6,659
6,636
6,613
6,599

Total GLA
69,529,628
69,495,691
69,248,695
69,221,717
69,004,421
68,553,715
68,318,943
68,043,615
68,551,075
68,253,976
67,757,475
67,531,644
66,967,294
66,398,526
65,894,414
65,624,994

Year-End 2009

Vacancy
Direct SF
4,518,774
4,627,584
4,413,636
4,143,090
3,918,311
3,585,413
3,492,973
3,616,722
4,306,454
3,545,410
3,677,194
3,914,512
4,162,046
4,345,800
4,276,979
4,409,518

Total SF
5,015,763
5,156,938
5,010,437
4,746,647
4,307,079
3,948,341
3,670,459
3,755,761
4,454,477
3,692,335
3,841,817
4,080,190
4,330,347
4,504,463
4,430,920
4,557,284

Net

Deliveries

Vac %

Absorption

# Blds

7.2%
7.4%
7.2%
6.9%
6.2%
5.8%
5.4%
5.5%
6.5%
5.4%
5.7%
6.0%
6.5%
6.8%
6.7%
6.9%

175,112
100,495
(236,812)
(222,272)
91,968
(43,110)
360,630
191,256
(465,043)
645,983
464,204
814,507
742,884
430,569
395,784
430,228

5
12
4
17
24
20
17
17
12
24
14
29
25
24
15
31

Total GLA
34,449
255,944
26,978
217,296
464,011
245,870
275,328
206,742
340,402
612,702
229,443
625,127
602,568
505,403
279,987
681,282

UC Inventory
# Blds
15
13
21
17
28
43
54
54
47
42
51
49
47
61
59
47

Total GLA
479,753
341,000
446,913
292,922
470,693
763,427
911,984
1,045,050
774,260
876,165
1,243,827
1,220,574
1,234,117
1,400,207
1,534,530
1,151,934

Quoted
Rates
$14.06
$14.25
$14.17
$13.98
$14.56
$14.41
$15.10
$14.92
$15.09
$15.46
$15.65
$16.07
$16.11
$15.85
$15.29
$14.67

Source: CoStar Property®

Mall Market Statistics
Existing Inventory
Period

# Ctrs

2009 4q
2009 3q
2009 2q
2009 1q
2008 4q
2008 3q
2008 2q
2008 1q
2007 4q
2007 3q
2007 2q
2007 1q
2006 4q
2006 3q
2006 2q
2006 1q

21
21
21
21
21
21
20
20
20
20
20
20
20
20
20
20

Total GLA
18,679,626
18,672,670
18,299,791
18,095,637
18,039,427
18,025,096
17,544,747
17,055,214
17,052,525
17,037,525
17,037,525
16,908,427
16,846,957
16,619,035
16,614,128
16,442,372

Year-End 2009
Vacancy

Direct SF
1,015,763
1,066,907
1,008,288
1,181,923
1,011,195
986,016
845,463
744,212
761,049
693,223
733,788
644,778
693,598
534,624
548,270
439,204

Total SF
1,015,763
1,066,907
1,012,621
1,188,392
1,014,865
988,152
847,599
744,212
761,049
693,223
745,172
649,436
698,256
539,282
552,135
443,069

Net

Deliveries

Vac %

Absorption

# Blds

5.4%
5.7%
5.5%
6.6%
5.6%
5.5%
4.8%
4.4%
4.5%
4.1%
4.4%
3.8%
4.1%
3.2%
3.3%
2.7%

58,100
318,593
379,925
(117,317)
(12,382)
339,796
386,146
19,526
(52,826)
51,949
33,362
110,290
68,948
17,760
62,690
(19,846)

1
12
2
2
1
8
19
1
1
0
3
2
4
1
3
1

Total GLA
6,956
372,879
204,154
56,210
14,331
480,349
489,533
2,689
15,000
0
129,098
61,470
227,922
4,907
171,756
243,976

UC Inventory
# Blds
0
1
12
12
9
10
11
29
24
11
7
6
8
8
7
7

Total GLA
0
6,956
372,879
563,092
509,559
523,890
534,777
997,310
853,431
367,695
116,647
168,985
230,455
359,959
296,173
396,490

Quoted
Rates
$23.88
$24.76
$25.12
$25.24
$24.66
$27.12
$24.71
$24.50
$24.50
$26.89
$26.19
$25.37
$26.53
$27.66
$27.56
$27.99

Source: CoStar Property®

Power Center Market Statistics
Existing Inventory
Period

# Ctrs

2009 4q
2009 3q
2009 2q
2009 1q
2008 4q
2008 3q
2008 2q
2008 1q
2007 4q
2007 3q
2007 2q
2007 1q
2006 4q
2006 3q
2006 2q
2006 1q

42
42
42
42
42
42
42
42
42
42
42
42
42
42
42
42

Total GLA
17,816,299
17,807,887
17,723,172
17,695,379
17,265,990
17,240,701
17,052,452
16,132,578
16,132,578
16,036,116
15,883,274
15,862,884
15,580,414
15,253,020
15,251,226
15,184,546

Year-End 2009

Vacancy
Direct SF
2,275,990
2,216,652
2,227,261
2,192,218
1,962,745
1,664,363
1,645,263
854,974
866,974
924,902
1,110,690
1,316,075
1,279,094
1,445,555
1,221,947
1,176,502

Total SF
2,355,307
2,261,695
2,268,745
2,263,853
2,063,759
1,734,724
1,763,765
970,226
966,856
1,024,946
1,214,057
1,418,294
1,358,636
1,529,093
1,304,045
1,255,100

Net

Deliveries

Vac %

Absorption

# Blds

13.2%
12.7%
12.8%
12.8%
12.0%
10.1%
10.3%
6.0%
6.0%
6.4%
7.6%
8.9%
8.7%
10.0%
8.6%
8.3%

(85,200)
91,765
22,901
229,295
(303,746)
217,290
126,335
(3,370)
154,552
341,953
224,627
222,812
497,851
(223,254)
17,735
89,451

2
3
3
9
3
7
3
0
2
4
1
2
8
1
2
8

Total GLA
8,412
84,715
27,793
429,389
25,289
188,249
919,874
0
96,462
152,842
20,390
282,470
327,394
1,794
66,680
290,534

UC Inventory
# Blds
0
2
5
6
12
12
13
12
4
3
7
7
7
11
10
6

Total GLA
0
8,412
93,127
90,725
457,182
454,678
588,899
1,433,295
1,071,874
996,462
1,149,304
1,161,232
1,352,902
1,509,864
1,484,076
1,149,442

Quoted
Rates
$22.83
$22.77
$23.34
$23.56
$24.24
$24.60
$24.28
$19.71
$19.64
$20.03
$19.93
$20.52
$20.16
$20.20
$20.13
$19.14

Source: CoStar Property®

18

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
FIGURES AT A GLANCE

Shopping Center Market Statistics
Existing Inventory
Period

# Ctrs

2009 4q
2009 3q
2009 2q
2009 1q
2008 4q
2008 3q
2008 2q
2008 1q
2007 4q
2007 3q
2007 2q
2007 1q
2006 4q
2006 3q
2006 2q
2006 1q

1,289
1,289
1,289
1,288
1,286
1,285
1,281
1,277
1,271
1,266
1,264
1,261
1,258
1,254
1,251
1,247

Total GLA
67,317,412
67,316,001
67,312,233
67,191,997
67,096,680
67,023,952
66,944,965
66,786,678
66,624,877
66,226,648
66,153,309
66,001,753
65,767,729
65,678,887
65,447,854
65,314,754

Year-End 2009

Vacancy
Direct SF
7,202,454
7,267,229
7,069,753
6,985,114
6,698,451
6,497,294
6,370,025
6,309,398
6,244,335
5,833,512
5,672,580
5,804,462
5,523,093
5,758,196
5,650,752
5,446,225

Net

Total SF
7,342,911
7,396,353
7,186,795
7,158,274
6,889,777
6,644,045
6,508,510
6,447,207
6,379,947
5,966,452
5,767,445
5,965,238
5,678,954
5,857,870
5,737,562
5,506,124

Deliveries

Vac %

Absorption

# Blds

10.9%
11.0%
10.7%
10.7%
10.3%
9.9%
9.7%
9.7%
9.6%
9.0%
8.7%
9.0%
8.6%
8.9%
8.8%
8.4%

54,853
(205,790)
91,715
(173,180)
(173,004)
(56,548)
96,984
94,541
(15,266)
(125,668)
349,349
(52,260)
267,758
110,725
(98,338)
(121,022)

1
1
3
6
10
12
7
14
12
7
9
13
11
8
13
23

UC Inventory

Total GLA
1,411
3,768
120,236
95,317
72,728
78,987
158,287
161,801
398,229
73,339
151,556
234,024
88,842
231,033
133,100
309,822

# Blds
2
3
2
5
10
16
24
19
22
29
28
27
33
37
27
25

Quoted

Total GLA
220,172
221,583
5,179
125,415
216,964
157,502
155,596
232,461
317,999
590,534
607,531
621,661
679,993
587,794
564,306
418,287

Rates
$15.05
$15.43
$15.52
$15.61
$15.87
$15.86
$15.73
$15.60
$15.48
$15.61
$15.72
$15.53
$14.96
$14.90
$14.76
$14.56

Source: CoStar Property®

Specialty Center Market Statistics
Existing Inventory
Period

# Ctrs

2009 4q
2009 3q
2009 2q
2009 1q
2008 4q
2008 3q
2008 2q
2008 1q
2007 4q
2007 3q
2007 2q
2007 1q
2006 4q
2006 3q
2006 2q
2006 1q

7
7
7
7
7
7
7
7
7
7
7
7
7
7
7
7

Total GLA
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164
1,645,164

Year-End 2009

Vacancy
Direct SF
93,574
87,517
79,817
63,072
57,462
51,462
6,110
9,228
6,110
7,805
7,805
7,795
22,746
22,746
1,695
2,700

Net

Total SF
123,984
118,542
106,252
115,069
110,448
86,397
40,430
40,548
37,430
39,125
39,125
39,115
28,246
28,246
11,225
12,230

Deliveries

Vac %

Absorption

# Blds

7.5%
7.2%
6.5%
7.0%
6.7%
5.3%
2.5%
2.5%
2.3%
2.4%
2.4%
2.4%
1.7%
1.7%
0.7%
0.7%

(5,442)
(12,290)
8,817
(4,621)
(24,051)
(45,967)
118
(3,118)
1,695
0
(10)
(10,869)
0
(17,021)
1,005
(1,005)

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

UC Inventory

Total GLA
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

# Blds

Quoted

Total GLA

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Rates
$28.49
$20.03
$20.01
$18.90
$18.91
$18.17
$18.21
$18.21
$18.21
$18.21
$18.21
$17.20
$17.20
$17.20
$17.20
$16.35

Source: CoStar Property®

Total Retail Market Statistics
Existing Inventory
Period

# Blds

2009 4q
2009 3q
2009 2q
2009 1q
2008 4q
2008 3q
2008 2q
2008 1q
2007 4q
2007 3q
2007 2q
2007 1q
2006 4q
2006 3q
2006 2q
2006 1q

9,818
9,810
9,783
9,771
9,737
9,701
9,656
9,610
9,583
9,559
9,527
9,501
9,459
9,413
9,380
9,348

Total GLA
174,988,129
174,937,413
174,229,055
173,849,894
173,051,682
172,488,628
171,506,271
169,663,249
170,006,219
169,199,429
168,476,747
167,949,872
166,807,558
165,594,632
164,852,786
164,211,830

Year-End 2009

Vacancy
Direct SF
15,106,555
15,265,889
14,798,755
14,565,417
13,648,164
12,784,548
12,359,834
11,534,534
12,184,922
11,004,852
11,202,057
11,687,622
11,680,577
12,106,921
11,699,643
11,474,149

Net

Total SF
15,853,728
16,000,435
15,584,850
15,472,235
14,385,928
13,401,659
12,830,763
11,957,954
12,599,759
11,416,081
11,607,616
12,152,273
12,094,439
12,458,954
12,035,887
11,773,807

Deliveries

Vac %

Absorption

# Blds

9.1%
9.1%
8.9%
8.9%
8.3%
7.8%
7.5%
7.0%
7.4%
6.7%
6.9%
7.2%
7.3%
7.5%
7.3%
7.2%

197,423
292,773
266,546
(288,095)
(421,215)
411,461
970,213
298,835
(376,888)
914,217
1,071,532
1,084,480
1,577,441
318,779
378,876
377,806

9
28
12
34
38
47
46
32
27
35
27
46
48
34
33
63

Total GLA
51,228
717,306
379,161
798,212
576,359
993,455
1,843,022
371,232
850,093
838,883
530,487
1,203,091
1,246,726
743,137
651,523
1,525,614

UC Inventory
# Blds
17
19
40
40
59
81
102
114
97
85
93
89
95
117
103
85

Total GLA
699,925
577,951
918,098
1,072,154
1,654,398
1,899,497
2,191,256
3,708,116
3,017,564
2,830,856
3,117,309
3,172,452
3,497,467
3,857,824
3,879,085
3,116,153

Quoted
Rates
$15.94
$16.13
$16.35
$16.39
$16.80
$16.75
$16.80
$15.81
$15.75
$15.96
$16.08
$16.14
$15.78
$15.70
$15.47
$15.10

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

19

DENVER – YEAR-END 2009

Denver Retail Market
LEASING ACTIVITY

Historical Rental Rates
Based on NNN Rental Rates
Power Center

Specialty Center

General Retail

Shopping Center

Mall

Total Market

$29.00
$27.00

Dollars/SF/Year

$25.00
$23.00
$21.00
$19.00
$17.00
$15.00
$13.00
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacancy by Available Space Type

Vacancy by Building Type

Percent of All Vacant Space in Direct vs. Sublet

Percent of All Vacant Space by Building Type

5%

Shopping Center

General Retail

Power Center

Mall

Specialty Center

95%

Direct

Sublet

0%

Source: CoStar Property®

10%

20%

30%

40%

50%

Source: CoStar Property®

GLA By Building Type

Future Space Available

Ratio of Total GLA by Building Type

Space Scheduled to be Available for Occupancy*
0.2

General Retail

0.18

0.2
0.15

0.2

Shopping Center

0.1

Millions

0.1

Mall

Power Center

0.1
0.1
0.1
0.03

0.0
0.0

Specialty Center

0.00

0.00

0.00

2010 4q

2011 1q

2011 2q

0.0
Millions of Square0 Feet 10
Source: CoStar Property®

20

20

30

40

50

60

70

2010 1q

80

2010 2q

* Includes Under Construction Spaces

THE COSTAR RETAIL REPORT

2010 3q

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
LEASING ACTIVITY

Select Top Retail Leases

Based on Leased Square Footage For Deals Signed in 2009

Building

Submarket

SF

Qtr

Tenant Name

Tenant Rep Company

Landlord Rep Company

1

Shops at Quail Creek

Broomfield County

99,844

1st

King Soopers

N/A

Regency Centers

2

Alameda Square Shopping Center

Southwest Denver

70,000

2nd

Lowe’s

Direct Deal

Brighton Corporation

3

1505 S Colorado Blvd

Colorado Blvd/I-25

39,564

3rd

Nordstrom Rack

David Hicks & Lampert Brokerage Inc

KP Properties of Colorado LLC

4

Lord & Taylor (former)

Broomfield County

30,391

2nd

Ultimate Electronics

N/A

The Macerich Company

5

Belmar

Southwest Denver

29,026

1st

N/A

N/A

Continuum Partners LLC

6

Centennial Promenade

Panorama/Highland Park

28,123

4th

N/A

Direct Deal

SullivanHayes Brokerage

7

Sprouts Farmers Market

Aurora

26,000

4th

Sprouts Farmers Market

N/A

Miller Weingarten Realty, LLC

8

Havana Plaza

Aurora

25,593

4th

Addis Ababa Restaurant

Direct Deal

N/A

9

Belleview Shores Shopping Center

Southwest Denver

25,216

1st

American Furniture Warehouse

Direct Deal

Jordon Perlmutter & Co.

10

Sprouts

Parker/Castle Rock

25,158

3rd

Parker Payless Wine & Spirits

Fuller Real Estate

Fuller Real Estate

11

Huron Plaza Bldgs A-C

Northwest Denver

24,928

2nd

Savage Elite Sportsplex

Direct Deal

Summit Real Estate Management

12

Williams Village Shopping Center

Boulder

23,837

2nd

Sprouts Farmers Market

SullivanHayes Brokerage

Gibbons-White, Inc.

13

Bowles Crossing

Southwest Denver

22,000

1st

Sports Authority

N/A

CB Richard Ellis

14

5816 S College Ave

Fort Collins/Loveland

18,000

1st

N/A

N/A

Realtec Commercial Real Estate Serv

15

Dollar Tree

East I-70/Montbello

17,500

1st

Dollar Tree Stores Inc

N/A

Shames-Makovsky Realty Company

16

Brittany Hill

North Denver

17,241

2nd

Brittany Hill, LLC

Direct Deal

Leino & Company LLC

17

Ultimate Electronics

Fort Collins/Loveland

16,200

3rd

Spotlight Music

N/A

SullivanHayes Brokerage

18

Gardens on Havana B1-B2

Aurora

15,000

3rd

PETCO

Legend Retail Group

Miller Weingarten Realty, LLC

19

Walgreen’s

Southwest Denver

14,820

1st

Walgreens

N/A

N/A

20

Harmony School Shops

Fort Collins/Loveland

14,000

1st

Direct Buy

N/A

SullivanHayes Brokerage

21

ACE Hardware

Boulder

13,989

4th

N/A

N/A

Gibbons-White, Inc.

22

Fiesta Plaza

Southwest Denver

12,911

1st

Family Dollar Stores of Colorado

N/A

Fuller Real Estate

23

Aurora Mall Plaza West*

Aurora

11,500

4th

Winner’s Bingo

Direct Deal

Dunton Commercial Real Estate Co.

24

1401 Ogden St

Capitol Hill

11,000

1st

Celebrationworks

N/A

Emerson Block, LLC

25

1230 Park St

Parker/Castle Rock

10,800

1st

N/A

N/A

Larry W Davidson & George A Evans

26

Dry Creek Center

Arapahoe Rd

10,800

4th

Dollar Tree

N/A

J&B Building Company

27

Pier One Imports

Parker/Castle Rock

10,800

4th

Vitamin Shoppe

Legend Retail Group

Legend Retail Group

28

7171 W Alaska Dr

Southwest Denver

10,171

2nd

N/A

N/A

Cushman & Wakefield of Colorado

29

Cherry Creek Shopping Center

Cherry Creek

9,200

2nd

Brio Tuscan Grille

N/A

Cherry Creek Shopping Center

30

5816 S College Ave

Fort Collins/Loveland

9,068

1st

N/A

N/A

Realtec Commercial Real Estate Serv

31

Villa South

Southwest Denver

9,042

4th

N/A

N/A

Sperry Properties, Inc.

32

Chambers Point

Aurora

8,900

1st

N/A

N/A

Western Centers, Inc.

33

3550 Arapahoe Ave

Boulder

8,897

2nd

Napa Auto Parts

Gibbons-White, Inc.

Gibbons-White, Inc.

34

Sherman Station

Longmont

8,500

3rd

N/A

N/A

Nova Realty & Investments Inc.

35

Chambers Square

Aurora

8,500

1st

House of Rentals

Direct Deal

Freund & Company

36

3120 Vista Village Dr

East I-70/Montbello

8,400

4th

Super Dollar Store

Mitchlen Properties LLC

Mitchlen Properties LLC

37

9230 Sheridan Blvd

Northwest Denver

8,397

2nd

Musicians Superstore

N/A

Centro Properties Group

38

Fairways Plaza - Bldg B

Arapahoe Rd

8,385

3rd

Colorado Casual

Direct Deal

Fuller Real Estate

39

Tabor Center - Retail

Central Business District

8,314

3rd

Tilted Kilt

N/A

CB Richard Ellis

40

227 S College Ave

Fort Collins/Loveland

8,288

3rd

N/A

N/A

Realtec Commercial Real Estate Serv

Source: CoStar Property®

* Renewal
©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

21

DENVER – YEAR-END 2009

Denver Retail Market
SALES ACTIVITY

The Optimist Sales Index

Average of Two Highest Price/SF's and Two Lowest Cap Rates

Cap Rate

Price/SF
$500

12.0%

$450
$400
$350

8.0%

$300
$250

6.0%

$200
4.0%

Dollars/SF

Cap Rate Percentage

10.0%

$150
$100

2.0%

$50
0.0%

$0
2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

Source: CoStar COMPS®

Sales Volume & Price

Sales Analysis by Building Size

Based on Retail Building Sales of 15,000 SF and Larger

Based on Retail Building Sales From Oct. 2008 - Sept. 2009

Sales Volume

Bldg Size

Price/SF

$450
$400

RBA

$ Volume

Price/SF Cap Rate

< 25,000 SF

164

1,103,987

$

215,101,299

$ 194.84

8.05%

25K-99K SF

14

625,745

$

51,889,850

$

82.92

7.81%

100K-249K SF

3

451,362

$

37,100,000

$

82.20

8.33%

$

-

-

$200

$350
$300

$150

$250
$200

Price/SF

Millions of Sales Volume Dollars

#

$250

$100

$150
$100

$50

$50
$0

$0

-

>250K SF

2004 2005 2005 2006 2006 2007 2007 2008 2008 2009
4q
2q
4q
2q
4q
2q
4q
2q
4q
2q
Source: CoStar COMPS®

-

-

Source: CoStar COMPS®

U.S. Price/SF Comparison

U.S. Cap Rate Comparison

Based on Retail Building Sales of 15,000 SF and Larger

Based on Retail Building Sales of 15,000 SF and Larger

Denver

US

$190

10.0%

$170

9.0%

$150
$130
$110
$90
$70

US

8.0%
7.0%
6.0%
5.0%
4.0%

$50
$30

3.0%
2004
4q

Source: CoStar COMPS®

22

Denver

11.0%

Cap Rate Percentage

Dollars per SF

$210

2005
2q

2005
4q

2006
2q

2006
4q

2007
2q

2007
4q

2008
2q

2008
4q

2009
2q

2004
4q

2005
2q

2005
4q

2006
2q

2006
4q

2007
2q

2007
4q

2008
2q

2008
4q

2009
2q

Source: CoStar COMPS®

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
SALES ACTIVITY

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©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

23

DENVER – YEAR-END 2009

Denver Retail Market
SALES ACTIVITY

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Select Land Sales

Based on Commercially Zoned Land Sales Occurring From Oct. 2008 - Dec. 2009

7950 S Dayton St, Centennial

1265 Opie Dr, Littleton

2870 28th St, Boulder

Sale Price:
Acres:
Price/SF:
Closing Date:
Zoning:
Intended Use:
Buyer:
Seller:

Sale Price:
Acres:
Price/SF:
Closing Date:
Zoning:
Intended Use:
Buyer:
Seller:

Sale Price:
Acres:
Price/SF:
Closing Date:
Zoning:
Intended Use:
Buyer:
Seller:

$10,250,000
13.65
$17.24
12/23/2008
PUD
General Freestanding
Ikea Property Inc
Miller Global Properties LLC

$6,185,000
14.21
$9.99
10/21/2008
TC
General Freestanding
Target Corporation
Denver Technological Center

$3,999,805
0.64
$142.85
08/14/2009
Unknown
Hold for Development
Walgreens Co.
Pedersen Development Company LLC

9200 W Colfax Ave, Lakewood

S Lima St, Centennial

24400 E Smoky Hill Rd, Aurora

Sale Price:
Acres:
Price/SF:
Closing Date:
Zoning:
Intended Use:
Buyer:
Seller:

Sale Price:
Acres:
Price/SF:
Closing Date:
Zoning:
Intended Use:
Buyer:
Seller:

Sale Price:
Acres:
Price/SF:
Closing Date:
Zoning:
Intended Use:
Buyer:
Seller:

$3,150,000
4.44
$16.29
03/18/2009
C-2, Denver
Bank
Garrison Station Development
Mickelson Properties LLC

$1,500,000
3.40
$10.13
05/27/2009
PD
Retail
CEBFA Storage I LLC
Asset Realty Advisors

$1,436,700
1.13
$29.19
07/28/2009
PD, Aurora
Fast Food
Gaube Albrecht
ServiceStar Development Company, LL

Source: CoStar COMPS®

24

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
A U R O R A

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.400

Absorption SF

Vacancy

16.0%
14.0%

0.200

10.0%

(0.200)

8.0%
6.0%

(0.400)

Percent Vacant

Millions SF

12.0%
0.000

4.0%
(0.600)

2.0%

(0.800)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

1.75

$14.40

Sublet SF

$14.20

1.70

$14.00

1.65

$13.80
Dollars/SF/Year

Millions SF

1.60
1.55
1.50
1.45

$13.60
$13.40
$13.20
$13.00

1.40

$12.80

1.35

$12.60

1.30

$12.40
$12.20

1.25

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
845
16,440,674

Vacancy
Vacant SF
Vacancy %
1,715,436
10.4%

Net
Absorption
(29,539)

Delivered Inventory
# Bldgs
Total RBA
2
5,606

UC Inventory
# Bldgs
Total RBA
2
30,324

Quoted
Rates
$13.36

2009 3q

843

16,435,068

1,680,291

10.2%

35,191

1

26,000

3

27,606

$13.93

2009 2q

842

16,409,068

1,689,482

10.3%

930

3

27,793

3

31,606

$14.14

2009 1q

839

16,381,275

1,662,619

10.1%

39,193

9

201,308

4

29,204

$13.05

2008 4q

830

16,179,967

1,500,504

9.3%

96,749

3

18,567

13

230,512

$13.13

2008 3q

827

16,161,400

1,578,686

9.8%

37,141

2

9,418

13

221,286

$12.94

2008 2q

825

16,151,982

1,606,409

9.9%

(93,585)

0

0

8

171,700

$13.34

2008 1q

825

16,151,982

1,512,824

9.4%

124,127

5

49,291

5

112,944

$12.92

2007 4q

823

16,806,647

2,291,616

13.6%

(741,397)

1

7,000

6

50,702

$12.34

2007 3q

822

16,799,647

1,543,219

9.2%

(102,743)

3

23,500

7

57,702

$12.57

2007 2q

819

16,776,147

1,416,976

8.4%

(18,945)

2

13,499

8

71,844

$12.69

2007 1q

817

16,762,648

1,384,532

8.3%

8,693

1

2,448

9

78,343

$12.67

2006 4q

816

16,760,200

1,390,777

8.3%

86,330

0

0

7

31,858

$12.19

2006 3q

816

16,760,200

1,477,107

8.8%

156,366

1

14,000

5

18,359

$12.27

2006 2q

815

16,746,200

1,619,473

9.7%

(34,864)

1

1,629

3

18,711

$11.98

2006 1q

814

16,744,571

1,582,980

9.5%

(111,440)

4

27,105

4

20,340

$11.56

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

25

DENVER – YEAR-END 2009

Denver Retail Market
B O U L D E R

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.250

Absorption SF

Vacancy

9.0%
8.0%

0.200

7.0%
6.0%

0.100

5.0%

0.050

4.0%
3.0%

0.000

Percent Vacant

Millions SF

0.150

2.0%
(0.050)

1.0%

(0.100)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.80

$25.00

Sublet SF

0.70

$20.00
Dollars/SF/Year

Millions SF

0.60
0.50
0.40
0.30
0.20

$15.00

$10.00

$5.00

0.10
$0.00

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
467
8,507,968

Vacancy
Vacant SF
Vacancy %
624,311
7.3%

Net
Absorption
87,490

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
1
8,100

Quoted
Rates
$17.35

2009 3q

467

8,507,968

711,801

8.4%

18,698

1

9,112

0

0

$17.79

2009 2q

466

8,498,856

721,387

8.5%

(65,779)

0

0

1

9,112

$18.41

2009 1q

466

8,498,856

655,608

7.7%

(48,652)

0

0

1

9,112

$18.80

2008 4q

466

8,498,856

606,956

7.1%

(75,394)

0

0

1

9,112

$19.20

2008 3q

466

8,498,856

531,562

6.3%

78,849

1

25,830

0

0

$19.71

2008 2q

466

8,482,326

593,881

7.0%

(43,235)

3

36,185

1

25,830

$20.41

2008 1q

463

8,446,141

514,461

6.1%

(50,795)

0

0

4

62,015

$20.95

2007 4q

463

8,446,141

463,666

5.5%

77,707

0

0

3

51,515

$20.84

2007 3q

464

8,451,141

546,373

6.5%

46,517

1

13,956

2

45,830

$21.16

2007 2q

464

8,445,722

587,471

7.0%

32,827

3

20,984

2

33,956

$21.40

2007 1q

461

8,424,738

599,314

7.1%

32,478

1

5,145

5

54,940

$21.03

2006 4q

460

8,419,593

626,647

7.4%

(31,588)

4

133,520

5

46,129

$21.36

2006 3q

456

8,286,073

461,539

5.6%

212,011

1

224,173

7

166,165

$22.02

2006 2q

455

8,061,900

449,377

5.6%

1

14,909

6

377,693

$21.50

2006 1q

454

8,046,991

432,835

5.4%

2

220,766

3

348,412

$22.01

(1,633)
199,782

Source: CoStar Property®

26

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market

B R O O M F I E L D

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.300

Absorption SF

Vacancy

12.0%

0.250
10.0%

0.150

8.0%

0.100
6.0%
0.050
0.000

4.0%

Percent Vacant

Millions SF

0.200

(0.050)
2.0%
(0.100)
(0.150)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.60

$20.00

Sublet SF

$19.50
0.50
Dollars/SF/Year

Millions SF

$19.00
0.40
0.30
0.20
0.10

$18.50
$18.00
$17.50
$17.00
$16.50

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
214
5,026,892

Vacancy
Vacant SF
Vacancy %
317,969
6.3%

Net
Absorption
31,582

Delivered Inventory
# Bldgs
Total RBA
0
0

(5,614)

UC Inventory
# Bldgs
Total RBA
1
208,752

Quoted
Rates
$17.58

2009 3q

214

5,026,892

349,551

7.0%

0

0

1

208,752

$17.66

2009 2q

214

5,026,892

343,937

6.8%

273,144

1

99,844

0

0

$18.86

2009 1q

213

4,927,048

517,237

10.5%

(29,735)

2

4,947

1

99,844

$19.15

2008 4q

211

4,922,101

482,555

9.8%

77,541

8

62,661

3

104,791

$19.31

2008 3q

203

4,859,440

497,435

10.2%

(124,713)

2

10,162

10

67,608

$19.44

2008 2q

201

4,849,278

362,560

7.5%

38,125

2

56,260

11

75,293

$19.17

2008 1q

199

4,793,018

344,425

7.2%

37,277

2

15,060

3

66,305

$18.60

2007 4q

197

4,777,958

366,642

7.7%

22,257

0

0

4

71,320

$19.35

2007 3q

197

4,777,958

388,899

8.1%

46,976

0

0

4

71,320

$19.30

2007 2q

197

4,777,958

435,875

9.1%

27,489

0

0

3

64,820

$17.86

2007 1q

197

4,777,958

463,364

9.7%

3,060

0

0

1

8,560

$16.97

2006 4q

197

4,777,958

466,424

9.8%

20,583

1

6,380

1

8,560

$16.80

2006 3q

196

4,771,578

480,627

10.1%

5,706

1

17,252

2

14,940

$17.45

2006 2q

195

4,754,326

469,081

9.9%

(5,527)

1

6,824

3

32,192

$17.70

2006 1q

194

4,747,502

456,730

9.6%

(43,182)

2

248,306

3

32,636

$18.02

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

27

DENVER – YEAR-END 2009

C E N T R A L

Denver Retail Market
B U S I N E S S

D I S T R I C T

MARKET HIGHLIGHTS – CLASS “A, B & C”

M A R K E T

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.080

Absorption SF

Vacancy

14.0%

0.060

12.0%
10.0%

0.020
8.0%
0.000
6.0%
(0.020)

Percent Vacant

Millions SF

0.040

4.0%

(0.040)

2.0%

(0.060)
(0.080)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.30

$27.00

Sublet SF

$26.50
$26.00

0.25
Dollars/SF/Year

Millions SF

$25.50
0.20
0.15
0.10

$25.00
$24.50
$24.00
$23.50
$23.00
$22.50

0.05

$22.00
$21.50

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
97
2,812,041

Vacancy
Vacant SF
Vacancy %
278,501
9.9%

Net
Absorption
(2,272)

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$26.29

2009 3q

97

2,812,041

276,229

9.8%

44,320

1

63,332

0

0

$24.41

2009 2q

96

2,748,709

257,217

9.4%

(6,729)

0

0

1

63,332

$23.37

2009 1q

96

2,748,709

250,488

9.1%

3,453

0

0

1

63,332

$24.05

2008 4q

96

2,748,709

253,941

9.2%

(41,933)

0

0

1

63,332

$23.29

2008 3q

96

2,748,709

212,008

7.7%

(63,851)

0

0

1

63,332

$23.24

2008 2q

96

2,748,709

148,157

5.4%

0

0

1

63,332

$23.53

2008 1q

96

2,748,709

149,001

5.4%

(25,130)

0

0

1

63,332

$23.44

2007 4q

96

2,748,709

123,871

4.5%

54,564

1

22,132

1

63,332

$24.97

2007 3q

96

2,761,580

191,306

6.9%

(14,052)

0

0

2

85,464

$27.02

2007 2q

96

2,761,580

177,254

6.4%

33,156

0

0

2

85,464

$27.98

2007 1q

96

2,761,580

210,410

7.6%

58,049

0

0

0

0

$23.05

2006 4q

96

2,761,580

268,459

9.7%

30,050

0

0

0

0

$22.47

2006 3q

96

2,761,580

298,509

10.8%

51,703

0

0

0

0

$22.66

2006 2q

96

2,761,580

350,212

12.7%

(12,072)

0

0

0

0

$24.22

2006 1q

96

2,761,580

338,140

12.2%

19,409

2

31,000

0

0

$24.09

844

Source: CoStar Property®

28

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market

C L E A R

C R E E K

C O U N T Y

MARKET HIGHLIGHTS – CLASS “A, B & C”

M A R K E T

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

Absorption SF

Vacancy

5.0%

0.004

4.5%

0.002

4.0%
3.5%

0.000

3.0%

(0.002)

2.5%
(0.004)

2.0%

(0.006)

Percent Vacant

Millions SF

0.006

1.5%

(0.008)

1.0%

(0.010)

0.5%

(0.012)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.01

$25.00

Sublet SF

$20.00
Dollars/SF/Year

Millions SF

0.01
0.01
0.01
0.00

$15.00

$10.00

$5.00

0.00

$0.00

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
26
246,226

Vacancy
Vacant SF
Vacancy %
11,215
4.6%

Net
Absorption
(11,215)

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$19.23

2009 3q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2009 2q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2009 1q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2008 4q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2008 3q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2008 2q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2008 1q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2007 4q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2007 3q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2007 2q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2007 1q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2006 4q

26

246,226

0

0.0%

0

0

0

0

0

$0.00

2006 3q

26

246,226

0

0.0%

4,118

1

4,118

0

0

$0.00

2006 2q

25

242,108

0

0.0%

0

0

0

1

4,118

$0.00

2006 1q

25

242,108

0

0.0%

0

0

0

1

4,118

$0.00

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

29

DENVER – YEAR-END 2009

Denver Retail Market

C O L O R A D O

B LV D / G L E N D A L E

MARKET HIGHLIGHTS – CLASS “A, B & C”

M A R K E T

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.200

Absorption SF

Vacancy

8.0%
7.0%

0.150

5.0%

0.050

4.0%
3.0%

0.000

Percent Vacant

Millions SF

6.0%
0.100

2.0%
(0.050)

1.0%

(0.100)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.70

$21.20

Sublet SF

$20.80

0.50

$20.60

Dollars/SF/Year

Millions SF

$21.00
0.60

0.40
0.30
0.20

$20.40
$20.20
$20.00
$19.80
$19.60

0.10

$19.40
$19.20

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
738
9,608,066

Vacancy
Vacant SF
Vacancy %
605,994
6.3%

Net
Absorption
66,299

Delivered Inventory
# Bldgs
Total RBA
1
6,124

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$20.60

2009 3q

737

9,601,942

666,169

6.9%

3,575

2

17,500

1

6,124

$20.41

2009 2q

735

9,584,442

652,244

6.8%

(27,973)

0

0

3

23,624

$20.56

2009 1q

735

9,584,442

624,271

6.5%

(25,294)

3

55,613

2

17,500

$20.77

2008 4q

732

9,528,829

543,364

5.7%

(72,436)

3

27,749

5

73,113

$21.05

2008 3q

729

9,501,080

443,179

4.7%

69,216

1

12,459

6

83,362

$20.59

2008 2q

728

9,488,621

499,936

5.3%

(16,267)

0

0

6

76,821

$20.57

2008 1q

728

9,488,621

483,669

5.1%

(27,722)

1

41,567

4

57,381

$19.95

2007 4q

727

9,447,054

414,380

4.4%

41,686

1

20,000

5

98,948

$20.19

2007 3q

726

9,427,054

436,066

4.6%

(4,616)

0

0

5

97,680

$19.43

2007 2q

726

9,427,054

431,450

4.6%

140,064

1

3,000

5

97,680

$18.93

2007 1q

725

9,424,054

568,514

6.0%

42,821

0

0

4

71,357

$18.98

2006 4q

726

9,462,035

649,316

6.9%

(17,077)

1

5,710

3

29,790

$19.06

2006 3q

725

9,456,325

626,529

6.6%

(88,094)

0

0

2

8,710

$19.16

2006 2q

725

9,456,325

538,435

5.7%

53,649

0

0

2

8,710

$19.71

2006 1q

726

9,466,892

602,651

6.4%

(45,477)

2

9,029

1

3,000

$17.34

Source: CoStar Property®

30

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market

E L B E R T

C O U N T Y

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.000

Absorption SF

Vacancy

6.0%

(0.002)
5.0%

(0.004)

Millions SF

4.0%

(0.008)
(0.010)

3.0%

(0.012)
2.0%

(0.014)
(0.016)

Percent Vacant

(0.006)

1.0%

(0.018)
(0.020)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.02

$12.00

Sublet SF

0.02

$10.00

0.02
Dollars/SF/Year

Millions SF

0.01
0.01
0.01
0.01
0.01
0.00

$8.00
$6.00
$4.00
$2.00

0.00
$0.00

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
16
381,437

Vacancy
Vacant SF
Vacancy %
18,335
4.8%

Net
Absorption
(18,335)

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$11.28

2009 3q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2009 2q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2009 1q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2008 4q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2008 3q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2008 2q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2008 1q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2007 4q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2007 3q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2007 2q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2007 1q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2006 4q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2006 3q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2006 2q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

2006 1q

16

381,437

0

0.0%

0

0

0

0

0

$0.00

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

31

DENVER – YEAR-END 2009

F O R T

Denver Retail Market

C O L L I N S / L O V E L A N D
MARKET HIGHLIGHTS – CLASS “A, B & C”

M A R K E T

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

Absorption SF

Vacancy

8.0%

0.500

7.0%

0.400

6.0%

0.300

5.0%

0.200

4.0%

0.100

3.0%

0.000

2.0%

(0.100)

1.0%

(0.200)

Percent Vacant

Millions SF

0.600

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

1.40

$14.80

Sublet SF

$14.60

1.20

$14.40
Dollars/SF/Year

Millions SF

1.00
0.80
0.60

$14.20
$14.00

0.40

$13.80

0.20

$13.60
$13.40

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
822
15,937,119

Vacancy
Vacant SF
Vacancy %
1,189,800
7.5%

Net
Absorption
(32,361)

Delivered Inventory
# Bldgs
Total RBA
1
6,956

UC Inventory
# Bldgs
Total RBA
4
142,139

Quoted
Rates
$14.00

2009 3q

821

15,930,163

1,150,483

7.2%

(60,418)

0

0

2

11,595

$14.18

2009 2q

821

15,930,163

1,090,065

6.8%

43,035

1

6,535

1

4,639

$14.39

2009 1q

820

15,923,628

1,126,565

7.1%

(73,294)

1

29,210

1

6,535

$14.28

2008 4q

819

15,894,418

1,024,061

6.4%

(19,257)

0

0

2

35,745

$14.39

2008 3q

819

15,894,418

1,004,804

6.3%

277,739

6

401,397

1

29,210

$13.95

2008 2q

813

15,493,021

881,146

5.7%

100,966

4

66,671

6

401,397

$14.69

2008 1q

809

15,426,350

915,441

5.9%

10,553

1

11,000

9

454,961

$14.59

2007 4q

808

15,415,350

914,994

5.9%

239,560

7

164,323

8

452,961

$14.31

2007 3q

801

15,251,027

990,231

6.5%

(15,859)

4

70,142

9

233,863

$14.45

2007 2q

797

15,180,885

904,230

6.0%

216,463

6

146,816

11

234,465

$14.38

2007 1q

791

15,034,069

973,877

6.5%

475,606

7

448,298

11

302,958

$14.40

2006 4q

784

14,585,771

1,001,185

6.9%

85,668

5

41,634

14

645,446

$14.50

2006 3q

779

14,544,137

1,045,219

7.2%

31,046

6

97,743

14

571,402

$14.53

2006 2q

773

14,446,394

978,522

6.8%

22,040

5

110,443

16

570,954

$14.31

2006 1q

768

14,335,951

890,119

6.2%

(96,961)

4

62,478

13

235,243

$13.75

Source: CoStar Property®

32

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market

G I L P I N

C O U N T Y

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

Absorption SF

Vacancy

100.0%

0.000

90.0%

0.000

80.0%

0.000

70.0%

0.000

60.0%

0.000

50.0%

0.000

40.0%

0.000

30.0%

0.000

20.0%

0.000

10.0%

0.000

Percent Vacant

Millions SF

0.000

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.00

$1.00

Sublet SF

$0.90

0.00

$0.80

0.00
Dollars/SF/Year

Millions SF

0.00
0.00
0.00
0.00

$0.70
$0.60
$0.50
$0.40

0.00

$0.30

0.00

$0.20

0.00

$0.10
$0.00

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
4
12,611

Vacancy
Vacant SF
Vacancy %
0
0.0%

Net
Absorption
0

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$0.00

2009 3q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2009 2q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2009 1q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2008 4q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2008 3q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2008 2q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2008 1q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2007 4q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2007 3q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2007 2q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2007 1q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2006 4q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2006 3q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2006 2q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

2006 1q

4

12,611

0

0.0%

0

0

0

0

0

$0.00

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

33

DENVER – YEAR-END 2009

Denver Retail Market
L O N G M O N T

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.350

Absorption SF

Vacancy

12.0%

0.300
10.0%

0.200

8.0%

0.150
6.0%
0.100
0.050

4.0%

Percent Vacant

Millions SF

0.250

0.000
2.0%
(0.050)
(0.100)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.58

$15.20

Sublet SF

$15.00

0.56

$14.80
Dollars/SF/Year

Millions SF

0.54
0.52
0.50
0.48

$14.60
$14.40
$14.20

0.46

$14.00

0.44

$13.80
$13.60

0.42

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
327
5,570,109

Vacancy
Vacant SF
Vacancy %
494,278
8.9%

Net
Absorption
832

Delivered Inventory
# Bldgs
Total RBA
1
4,217

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$14.36

2009 3q

326

5,565,892

490,893

8.8%

14,849

1

4,195

1

4,217

$14.28

2009 2q

325

5,561,697

501,547

9.0%

5,072

0

0

2

8,412

$14.23

2009 1q

325

5,561,697

506,619

9.1%

3,740

0

0

2

8,412

$14.39

2008 4q

325

5,561,697

510,359

9.2%

(15,958)

1

13,650

0

0

$14.95

2008 3q

324

5,548,047

480,751

8.7%

77,684

0

0

1

13,650

$15.12

2008 2q

324

5,548,047

558,435

10.1%

7,927

0

0

1

13,650

$14.89

2008 1q

324

5,548,047

566,362

10.2%

8,999

0

0

0

0

$14.91

2007 4q

324

5,548,047

575,361

10.4%

(41,352)

0

0

0

0

$14.09

2007 3q

324

5,548,047

534,009

9.6%

(53,200)

1

2,250

0

0

$14.69

2007 2q

323

5,545,797

478,559

8.6%

18,612

0

0

1

2,250

$15.21

2007 1q

323

5,545,797

497,171

9.0%

172,896

3

292,766

1

2,250

$15.59

2006 4q

320

5,253,031

377,301

7.2%

39,132

3

22,404

3

292,766

$15.73

2006 3q

317

5,230,627

394,029

7.5%

(4,519)

1

1,794

6

315,170

$15.34

2006 2q

316

5,228,833

387,716

7.4%

28,973

1

64,667

5

304,198

$15.23

2006 1q

315

5,164,166

352,022

6.8%

209,880

3

254,620

2

66,461

$15.02

Source: CoStar Property®

34

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market
M I D T O W N

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.300

Absorption SF

Vacancy

14.0%

0.250

12.0%
10.0%

0.150
0.100

8.0%

0.050

6.0%

0.000

Percent Vacant

Millions SF

0.200

4.0%

(0.050)
2.0%

(0.100)
(0.150)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.40

$16.00

Sublet SF

0.39

$15.80

0.38

$15.60
Dollars/SF/Year

Millions SF

0.37
0.36
0.35
0.34
0.33
0.32

$15.40
$15.20
$15.00
$14.80
$14.60

0.31

$14.40

0.30

$14.20

0.29

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
597
4,896,738

Vacancy
Vacant SF
Vacancy %
391,912
8.0%

Net
Absorption
(13,982)

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$15.50

2009 3q

597

4,896,738

377,930

7.7%

(25,562)

0

0

0

0

$14.90

2009 2q

597

4,896,738

352,368

7.2%

19,937

0

0

0

0

$15.17

2009 1q

597

4,896,738

372,305

7.6%

(21,871)

2

19,100

0

0

$15.60

2008 4q

595

4,877,638

331,334

6.8%

44,611

3

16,254

2

19,100

$15.92

2008 3q

593

4,873,105

371,412

7.6%

(42,087)

0

0

5

35,354

$15.83

2008 2q

593

4,873,105

329,325

6.8%

8,132

0

0

3

16,254

$15.82

2008 1q

593

4,873,105

337,457

6.9%

22,733

1

50,000

2

10,054

$15.47

2007 4q

592

4,823,105

310,190

6.4%

46,391

0

0

3

60,054

$15.75

2007 3q

592

4,823,105

356,581

7.4%

201,102

1

241,219

2

55,554

$15.05

2007 2q

591

4,581,886

316,464

6.9%

66,041

0

0

3

296,773

$14.99

2007 1q

591

4,581,886

382,505

8.3%

7,698

1

3,000

2

246,773

$14.65

2006 4q

590

4,578,886

387,203

8.5%

97,468

0

0

2

244,219

$14.50

2006 3q

590

4,578,886

484,671

10.6%

94,969

0

0

1

3,000

$14.24

2006 2q

590

4,578,886

579,640

12.7%

(15,720)

1

1,100

0

0

$13.02

2006 1q

589

4,577,786

562,820

12.3%

(113,276)

4

37,075

1

1,100

$12.69

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

35

DENVER – YEAR-END 2009

Denver Retail Market

N O R T H

D E N V E R

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.700

Absorption SF

Vacancy

14.0%

0.600

12.0%

0.500
10.0%

Millions SF

0.300

8.0%

0.200
6.0%

0.100
0.000

Percent Vacant

0.400

4.0%

(0.100)
2.0%

(0.200)
(0.300)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

1.20

$16.00

Sublet SF

$14.00
$12.00
Dollars/SF/Year

Millions SF

1.00
0.80
0.60
0.40

$10.00
$8.00
$6.00
$4.00

0.20

$2.00
$0.00

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
470
10,146,721

Vacancy
Vacant SF
Vacancy %
946,300
9.3%

Net
Absorption
5,121

Delivered Inventory
# Bldgs
Total RBA
1
7,481

UC Inventory
# Bldgs
Total RBA
1
11,420

Quoted
Rates
$12.48

2009 3q

469

10,139,240

943,940

9.3%

14,450

0

0

2

18,901

$13.48

2009 2q

469

10,139,240

958,390

9.5%

25,443

0

0

1

7,481

$13.85

2009 1q

469

10,139,240

983,833

9.7%

(22,301)

2

31,995

0

0

$13.91

2008 4q

467

10,107,245

929,537

9.2%

(60,927)

4

97,727

2

31,995

$15.01

2008 3q

463

10,009,518

770,883

7.7%

115,219

9

138,911

6

129,722

$14.65

2008 2q

454

9,870,607

747,191

7.6%

572,518

20

459,816

14

263,638

$14.66

2008 1q

434

9,410,791

859,893

9.1%

57,495

3

7,403

32

685,327

$14.54

2007 4q

431

9,403,388

909,985

9.7%

7,652

3

204,405

22

420,251

$14.14

2007 3q

428

9,198,983

713,232

7.8%

218,266

1

30,074

11

427,670

$14.05

2007 2q

427

9,168,909

901,424

9.8%

(17,169)

2

34,463

8

262,340

$13.89

2007 1q

425

9,134,446

849,792

9.3%

293,163

2

12,830

7

271,116

$13.93

2006 4q

425

9,132,823

1,141,332

12.5%

179,900

6

307,470

7

252,054

$13.53

2006 3q

419

8,825,353

1,013,762

11.5%

(231,202)

1

3,267

10

393,946

$13.29

2006 2q

419

8,823,377

780,584

8.8%

200,924

2

12,338

9

384,383

$13.02

2006 1q

417

8,811,039

969,170

11.0%

57,384

9

88,972

5

290,005

$13.78

Source: CoStar Property®

36

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market

N O R T H E A S T

D E N V E R

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

1.000

Absorption SF

Vacancy

18.0%
16.0%

0.800

12.0%

0.600

10.0%
0.400
8.0%
0.200

6.0%

Percent Vacant

Millions SF

14.0%

4.0%
0.000
2.0%
(0.200)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

1.60

$30.00

Sublet SF

1.40

$25.00

Dollars/SF/Year

Millions SF

1.20
1.00
0.80
0.60

$20.00
$15.00
$10.00

0.40
$5.00
0.20
$0.00

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
569
9,010,895

Vacancy
Vacant SF
Vacancy %
1,391,205
15.4%

Net
Absorption
31,027

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$24.43

2009 3q

569

9,010,895

1,422,232

15.8%

(21,402)

3

22,270

0

0

$23.63

2009 2q

566

8,988,625

1,378,560

15.3%

30,050

0

0

3

22,270

$23.98

2009 1q

566

8,988,625

1,408,610

15.7%

(42,074)

0

0

3

22,270

$23.82

2008 4q

566

8,988,625

1,366,536

15.2%

(29,779)

0

0

0

0

$24.26

2008 3q

566

8,988,625

1,336,757

14.9%

(25,315)

4

52,870

0

0

$24.19

2008 2q

562

8,935,755

1,258,572

14.1%

231,405

4

932,894

4

52,870

$23.90

2008 1q

558

8,002,861

557,083

7.0%

(18,611)

1

16,000

8

985,764

$18.78

2007 4q

557

7,986,861

522,472

6.5%

9,348

2

90,234

5

948,894

$18.92

2007 3q

555

7,896,627

441,586

5.6%

43,667

5

71,221

4

1,006,234

$20.33

2007 2q

550

7,825,406

414,032

5.3%

25,969

1

6,358

8

1,061,455

$20.04

2007 1q

549

7,819,048

433,643

5.5%

26,693

5

36,208

8

1,065,579

$20.07

2006 4q

544

7,782,840

424,128

5.4%

534,529

8

443,970

7

942,566

$18.86

2006 3q

536

7,338,870

514,687

7.0%

(4,269)

3

24,981

14

1,380,178

$19.16

2006 2q

533

7,313,889

485,437

6.6%

(4,155)

2

5,089

11

1,343,839

$19.82

2006 1q

531

7,308,800

476,193

6.5%

9

285,673

9

1,243,103

$19.88

326,640

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

37

DENVER – YEAR-END 2009

Denver Retail Market

N O R T H W E S T

D E N V E R

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.250

Absorption SF

Vacancy

14.0%

0.200

12.0%

0.150
10.0%

Millions SF

0.050

8.0%

0.000
6.0%

(0.050)
(0.100)

Percent Vacant

0.100

4.0%

(0.150)
2.0%

(0.200)
(0.250)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

2.50

$14.50

Sublet SF

$14.00

Dollars/SF/Year

Millions SF

2.00

1.50

1.00

0.50

$13.50
$13.00
$12.50
$12.00
$11.50

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
1,001
17,511,988

Vacancy
Vacant SF
Vacancy %
2,006,442
11.5%

Net
Absorption
(13,890)

Delivered Inventory
# Bldgs
Total RBA
1
5,865

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$12.75

2009 3q

1,000

17,506,123

1,986,687

11.3%

(1,963)

0

0

1

5,865

$13.70

2009 2q

1,001

17,515,071

1,993,672

11.4%

(27,990)

2

18,471

0

0

$13.84

2009 1q

999

17,496,600

1,947,211

11.1%

(131,575)

1

11,954

2

18,471

$13.76

2008 4q

998

17,484,646

1,803,682

10.3%

(196,230)

1

36,000

3

30,425

$13.77

2008 3q

997

17,448,646

1,571,452

9.0%

73,426

1

7,000

1

36,000

$13.88

2008 2q

996

17,441,646

1,637,878

9.4%

112,715

5

119,435

2

43,000

$14.27

2008 1q

991

17,322,211

1,631,158

9.4%

126,866

5

40,552

7

162,435

$14.16

2007 4q

987

17,289,355

1,725,168

10.0%

(114,663)

3

38,023

10

159,987

$14.41

2007 3q

985

17,254,632

1,575,782

9.1%

84,461

1

10,100

9

100,668

$14.42

2007 2q

984

17,244,532

1,650,143

9.6%

14,716

2

20,898

7

98,383

$15.57

2007 1q

983

17,227,246

1,647,573

9.6%

(70,750)

4

72,223

6

81,258

$14.61

2006 4q

979

17,155,023

1,504,600

8.8%

14,558

3

32,645

9

131,388

$13.92

2006 3q

977

17,133,978

1,498,113

8.7%

4,621

3

19,110

10

143,135

$14.05

2006 2q

974

17,114,868

1,483,624

8.7%

138,851

6

183,312

7

102,002

$13.10

2006 1q

968

16,931,556

1,439,163

8.5%

(15,625)

5

25,317

9

202,422

$13.23

Source: CoStar Property®

38

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market

P A R K

C O U N T Y

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.000

Absorption SF

Vacancy

8.0%
7.0%

(0.001)

6.0%
5.0%

(0.003)
4.0%
(0.004)
3.0%
(0.005)

Percent Vacant

Millions SF

(0.002)

2.0%

(0.006)

1.0%

(0.007)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

0.01

$1.00

Sublet SF

$0.80

0.01

$0.70

Dollars/SF/Year

Millions SF

$0.90
0.01

0.00
0.00
0.00

$0.60
$0.50
$0.40
$0.30
$0.20

0.00

$0.10
$0.00

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
22
85,238

Vacancy
Vacant SF
Vacancy %
6,184
7.3%

Net
Absorption
(6,184)

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$0.00

2009 3q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2009 2q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2009 1q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2008 4q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2008 3q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2008 2q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2008 1q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2007 4q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2007 3q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2007 2q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2007 1q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2006 4q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2006 3q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2006 2q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

2006 1q

22

85,238

0

0.0%

0

0

0

0

0

$0.00

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

39

DENVER – YEAR-END 2009

Denver Retail Market

P A R K E R / C A S T L E

R O C K

MARKET HIGHLIGHTS – CLASS “A, B & C”

M A R K E T

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.350

Absorption SF

Vacancy

9.0%

0.300

8.0%

0.250

7.0%

Millions SF

6.0%

0.150

5.0%

0.100
4.0%

0.050

3.0%

0.000
(0.050)

2.0%

(0.100)

1.0%

(0.150)

Percent Vacant

0.200

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

$21.50

Sublet SF

$21.00

0.70

$20.50

0.60

$20.00
Dollars/SF/Year

Millions SF

0.80

0.50
0.40
0.30

$19.50
$19.00
$18.50
$18.00
$17.50

0.20

$17.00

0.10

$16.50
$16.00

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
402
8,439,956

Vacancy
Vacant SF
Vacancy %
643,045
7.6%

Net
Absorption
26,387

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
4
159,412

Quoted
Rates
$19.73

2009 3q

402

8,439,956

669,432

7.9%

(47,169)

1

9,130

4

159,412

$19.80

2009 2q

401

8,430,826

613,133

7.3%

11,687

1

13,192

3

46,376

$18.14

2009 1q

400

8,417,634

611,628

7.3%

(4,390)

1

21,440

2

22,322

$17.94

2008 4q

399

8,396,194

585,798

7.0%

(86,569)

2

57,943

2

34,632

$19.91

2008 3q

397

8,338,251

441,286

5.3%

(50,870)

3

33,695

3

79,383

$20.58

2008 2q

394

8,304,556

356,721

4.3%

(28,202)

4

37,088

5

91,638

$21.03

2008 1q

390

8,267,468

291,431

3.5%

15,281

5

35,718

9

128,726

$20.50

2007 4q

385

8,231,750

270,994

3.3%

143,314

2

151,807

11

130,749

$21.48

2007 3q

383

8,079,943

262,501

3.2%

169,333

5

126,227

8

212,525

$20.40

2007 2q

378

7,953,716

305,607

3.8%

121,564

1

99,440

8

289,669

$20.37

2007 1q

377

7,854,276

327,731

4.2%

22,753

5

105,539

6

371,681

$20.36

2006 4q

372

7,748,737

244,945

3.2%

165,033

3

92,189

7

309,979

$20.46

2006 3q

369

7,656,548

317,789

4.2%

282,595

3

192,414

9

297,168

$19.64

2006 2q

366

7,464,134

407,970

5.5%

11,197

4

39,175

8

353,613

$18.63

2006 1q

362

7,424,959

379,992

5.1%

77,562

5

42,975

8

246,409

$18.22

Source: CoStar Property®

40

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market

S O U T H E A S T

D E N V E R

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.400

Absorption SF

Vacancy

10.0%
9.0%
8.0%
7.0%

0.200

6.0%
5.0%

0.100

4.0%
0.000

Percent Vacant

Millions SF

0.300

3.0%
2.0%

(0.100)

1.0%
(0.200)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

2.00

$25.00

Sublet SF

1.80
$20.00

1.60
Dollars/SF/Year

Millions SF

1.40
1.20
1.00
0.80

$15.00

$10.00

0.60
$5.00

0.40
0.20

$0.00

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
757
18,583,084

Vacancy
Vacant SF
Vacancy %
1,597,795
8.6%

Net
Absorption
170,074

Delivered Inventory
# Bldgs
Total RBA
1
10,000

UC Inventory
# Bldgs
Total RBA
2
58,278

Quoted
Rates
$17.19

2009 3q

756

18,573,084

1,757,869

9.5%

151,715

12

372,879

2

55,500

$17.57

2009 2q

744

18,200,205

1,536,705

8.4%

36,868

4

213,326

14

428,379

$19.64

2009 1q

740

17,986,879

1,360,247

7.6%

78,499

7

110,855

15

582,264

$20.55

2008 4q

733

17,876,024

1,327,891

7.4%

(38,787)

4

50,993

16

579,251

$20.46

2008 3q

730

17,826,615

1,239,695

7.0%

(46,709)

5

25,404

19

625,197

$21.31

2008 2q

726

17,803,009

1,169,380

6.6%

(21,113)

1

15,000

16

179,376

$19.26

2008 1q

725

17,788,009

1,133,267

6.4%

(76,380)

3

56,445

12

148,061

$19.09

2007 4q

722

17,731,564

1,000,442

5.6%

2

15,040

9

136,182

$19.94

2007 3q

720

17,716,524

985,869

5.6%

(97,727)

3

33,615

11

151,222

$19.74

2007 2q

717

17,682,909

854,527

4.8%

192,569

0

0

11

156,392

$20.10

2007 1q

717

17,682,909

1,047,096

5.9%

25,587

5

75,812

9

141,352

$19.65

2006 4q

713

17,618,686

1,008,460

5.7%

77,145

7

103,801

8

120,295

$17.52

2006 3q

706

17,514,885

981,804

5.6%

(61,204)

2

18,937

15

224,096

$16.26

2006 2q

704

17,495,948

901,663

5.2%

(73,599)

1

50,000

12

167,221

$16.50

2006 1q

703

17,445,948

778,064

4.5%

78,178

1

4,055

7

136,252

$16.91

467

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

41

DENVER – YEAR-END 2009

Denver Retail Market

S O U T H W E S T

D E N V E R

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.300

Absorption SF

Vacancy

9.0%
8.0%

0.200

6.0%

0.100

5.0%
0.000
4.0%
(0.100)

3.0%

Percent Vacant

Millions SF

7.0%

2.0%
(0.200)
1.0%
(0.300)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

$15.00

Sublet SF

1.40

$14.80

1.20

$14.60
Dollars/SF/Year

Millions SF

1.60

1.00
0.80
0.60
0.40

$14.40
$14.20
$14.00
$13.80

0.20

$13.60

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
967
19,927,331

Vacancy
Vacant SF
Vacancy %
1,488,973
7.5%

2009 3q

968

19,927,843

1,483,687

7.4%

2009 2q

966

19,861,047

1,520,999

7.7%

2009 1q

966

19,861,047

1,520,127

7.7%

2008 4q

964

19,624,390

1,430,022

2008 3q

961

19,597,931

2008 2q

954

2008 1q

Net
Absorption
(5,798)

Delivered Inventory
# Bldgs
Total RBA
0
0

104,108

UC Inventory
# Bldgs
Total RBA
1
75,000

Quoted
Rates
$14.66

2

66,796

1

75,000

$14.51

0

0

3

141,796

$14.42

146,552

2

236,657

2

66,796

$14.30

7.3%

(59,266)

3

26,459

3

248,933

$14.26

1,344,297

6.9%

164,597

7

188,249

6

275,392

$14.55

19,409,682

1,320,645

6.8%

79,562

2

105,673

12

460,041

$14.84

952

19,304,009

1,294,534

6.7%

33,261

3

29,040

10

526,979

$14.04

2007 4q

950

19,277,519

1,301,305

6.8%

(65,450)

1

74,677

6

286,713

$14.35

2007 3q

949

19,202,842

1,161,178

6.0%

231,842

3

134,506

5

203,516

$14.34

2007 2q

947

19,175,208

1,365,386

7.1%

(14,986)

1

21,600

4

209,183

$13.91

2007 1q

946

19,153,608

1,328,800

6.9%

(69,036)

6

54,520

5

230,783

$15.19

2006 4q

940

19,099,088

1,205,244

6.3%

85,569

2

17,294

8

184,686

$15.09

2006 3q

938

19,081,794

1,273,519

6.7%

46,487

3

18,745

9

93,414

$13.63

2006 2q

935

19,063,049

1,301,261

6.8%

8,441

4

26,289

6

57,639

$13.76

2006 1q

931

19,036,760

1,283,413

6.7%

4

46,081

8

56,301

$14.19

(872)

(222,359)

Source: CoStar Property®

42

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

YEAR-END 2009 – DENVER

Denver Retail Market

W E L D

C O U N T Y

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.200

Absorption SF

Vacancy

12.0%

0.150

10.0%

8.0%

0.050
0.000

6.0%

(0.050)

4.0%

Percent Vacant

Millions SF

0.100

(0.100)
2.0%

(0.150)
(0.200)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

1.00

$13.50

Sublet SF

0.90

$13.00

0.80
Dollars/SF/Year

Millions SF

0.70
0.60
0.50
0.40
0.30
0.20

$12.50
$12.00
$11.50
$11.00

0.10
$10.50

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
630
8,733,236

Vacancy
Vacant SF
Vacancy %
950,262
10.9%

Net
Absorption
(87,225)

Delivered Inventory
# Bldgs
Total RBA
0
0

UC Inventory
# Bldgs
Total RBA
1
6,500

Quoted
Rates
$11.92

2009 3q

630

8,733,236

863,037

9.9%

131,141

4

126,092

0

0

$11.47

2009 2q

626

8,607,144

868,086

10.1%

(37,941)

0

0

4

126,092

$12.07

2009 1q

626

8,607,144

830,145

9.6%

(4,458)

2

22,510

4

126,092

$12.08

2008 4q

624

8,584,634

803,177

9.4%

34,081

5

160,856

4

140,834

$11.85

2008 3q

619

8,423,778

676,402

8.0%

(148,207)

5

80,060

6

179,878

$11.62

2008 2q

614

8,343,718

448,135

5.4%

8,601

0

0

10

240,916

$12.30

2008 1q

614

8,343,718

456,736

5.5%

24,425

2

19,156

6

221,832

$13.14

2007 4q

612

8,324,562

462,005

5.5%

35,658

1

9,500

3

71,956

$13.24

2007 3q

611

8,315,062

488,163

5.9%

75,502

2

19,014

3

28,656

$13.47

2007 2q

609

8,296,048

544,651

6.6%

62,629

3

37,929

4

36,624

$13.56

2007 1q

606

8,258,119

569,351

6.9%

157,876

3

63,856

5

56,943

$13.92

2006 4q

603

8,194,263

663,371

8.1%

13,361

3

20,911

6

101,785

$13.76

2006 3q

600

8,173,352

655,821

8.0%

63,380

2

51,185

7

100,082

$13.81

2006 2q

598

8,122,167

668,016

8.2%

(13,668)

2

30,370

5

72,096

$13.99

2006 1q

596

8,091,797

623,978

7.7%

(72,105)

2

14,580

4

81,555

$14.00

Source: CoStar Property®

©2010 COSTAR GROUP, INC.

THE COSTAR RETAIL REPORT

43

DENVER – YEAR-END 2009

Denver Retail Market

W E S T

D E N V E R

M A R K E T

MARKET HIGHLIGHTS – CLASS “A, B & C”

Deliveries, Absorption & Vacancy Historical Analysis, All Classes
Delivered SF

0.250

Absorption SF

Vacancy

10.0%

0.200

9.0%

0.150

8.0%
7.0%

0.050

6.0%

0.000

5.0%

(0.050)

4.0%

(0.100)

Percent Vacant

Millions SF

0.100

3.0%

(0.150)
(0.200)

2.0%

(0.250)

1.0%

(0.300)

0.0%
2006 1q

2006 2q

2006 3q

2006 4q

2007 1q

2007 2q

2007 3q

2007 4q

2008 1q

2008 2q

2008 3q

2008 4q

2009 1q

2009 2q

2009 3q

2009 4q

Source: CoStar Property®

Vacant Space

Quoted Rental Rates

Historical Analysis, All Classes

Historical Analysis, All Classes

Direct SF

1.40

$17.00

Sublet SF

$16.50

1.20

$16.00
Dollars/SF/Year

Millions SF

1.00
0.80
0.60

$15.50
$15.00

0.40

$14.50

0.20

$14.00
$13.50

0.00

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q

2008 1q 2008 2q 2008 3q 2008 4q 2009 1q 2009 2q 2009 3q 2009 4q
Source: CoStar Property®

Period
2009 4q

Source: CoStar Property®

Existing Inventory
# Bldgs
Total RBA
847
13,109,799

Vacancy
Vacant SF
Vacancy %
1,175,771
9.0%

Net
Absorption
(588)

Delivered Inventory
# Bldgs
Total RBA
1
4,979

UC Inventory
# Bldgs
Total RBA
0
0

Quoted
Rates
$14.55

2009 3q

846

13,104,820

1,170,204

8.9%

(63,146)

0

0

1

4,979

$14.92

2009 2q

846

13,104,820

1,107,058

8.4%

(12,336)

0

0

1

4,979

$14.79

2009 1q

846

13,104,820

1,094,722

8.4%

(155,888)

2

52,623

0

0

$14.99

2008 4q

844

13,052,197

886,211

6.8%

22,339

1

7,500

2

52,623

$16.41

2008 3q

843

13,044,697

901,050

6.9%

19,342

1

8,000

3

60,123

$15.84

2008 2q

842

13,036,697

912,392

7.0%

11,820

1

14,000

2

15,500

$15.96

2008 1q

841

13,022,697

910,212

7.0%

36,456

0

0

2

22,000

$16.18

2007 4q

841

13,022,697

946,668

7.3%

(92,630)

3

52,952

1

14,000

$15.36

2007 3q

838

12,969,745

801,086

6.2%

84,748

5

63,059

3

52,952

$14.99

2007 2q

834

12,907,478

823,567

6.4%

170,533

5

125,500

8

116,011

$15.27

2007 1q

829

12,781,978

868,600

6.8%

(103,107)

3

30,446

10

188,559

$16.68

2006 4q

826

12,751,532

735,047

5.8%

196,780

2

18,798

8

155,946

$15.87

2006 3q

825

12,754,934

935,229

7.3%

(244,935)

6

55,418

6

128,059

$17.12

2006 2q

819

12,699,516

634,876

5.0%

76,039

2

105,378

9

81,716

$16.97

2006 1q

817

12,594,138

605,537

4.8%

129,396

5

127,582

7

148,796

$13.65

Source: CoStar Property®

44

THE COSTAR RETAIL REPORT

©2010 COSTAR GROUP, INC.

Costar Denver Retail Report

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